Tuesday, July 31, 2007

roller coaster

The market is now in a consolidation mode after it touched the 3,800 level and then what does the market do??? it goes crazy and mr market goes on a selling frenzy which lead to a big market correction for us. its now a wait and see game for us traders and investors. :) it would seem to me that the psei is undergoing a correction right now and how big the drop is i really dont know. The correction i believe is primarily caused by the unstoppable juggernaut called “recession” which most people now believe is about to hit the us. I remember when i wrote it i think september or october last year a lot of people disagreed that the us is due for a recession and now we are starting to see it unfold before our very eyes. :) but in the mean time other stocks are back to bargain levels so accumulate some. :) patience is the key here. A few days ago my friend raffy boy told me that the 2007 financial statements of feu are already out. So we discussed about it. after some computations and seeing the financial statements for myself the eps was about P86.37/share which is almost a 5% increase from last year. Well i told him to already get hold of some shares if he likes it. A school is just like an electric company dont pay your bill and your out!!! no electricity for you!!! hehehe as i told raffy boy the only people i know who graduated from a school without paying any tuition are scholars. :) and the rest are captive market of the school!!! do you remember when during exams you have to settle your tuition first before being allowed to take the test. A school is a cash cow. :) you know whats even better with a school compared to an electric company??? feu has very little debt which compared to an electric company it is debt heavy because every few years you need new equipment, machinery etc etc. a school doesnt need that :) it doesnt just have little debt it is also very liquid! :) what else can you ask for? My henry sy holds more than 20% of stock in this company. The board of directors are very competent and was impressed when i read more about their curriculum vitae. :) the number of enrollees dropped this school year because they lessened the number of students being accepted especially in their nursing course to improve the standards which i very much agree with the move. A school shouldnt just be happy with accepting students and get their tuition but it is also their responsibility to produce great and competent people when they go out into the real world. :) this is the bright side and shows a lot of promise for the company, the number of enrollees dropped by around 1,800 students but the school is still within its 24,000 target and still the company was able to increase its income. i wrote about feu a few weeks ago and i mentioned that it is slightly undervalued and i still stick to what i said awhile back it is undervalued and this could be a great long term investment. :) well its really up to you how you look at the company. But dont take my advice and always do your own research. I even told raffy boy a few weeks ago when he read the article about feu and i advised him that if he likes what he sees he should gets shares before august 15 or the end of august the latest. :) lets wait and see if this company will give great returns in the next few years. :) watch out for this! :)

1 comment:

Unknown said...

hello boss! looks like a great time to pick up some good value stocks at depressed prices this time around :D