Stocks Investment Portfolio

Portfolio and Investment Analysis

Maria Aleni B. Verallo MBM II

Stocks Investment Portfolio

January 20, 2014:
Stock Name Ayala Corp Metropolitan Bank & Trust Co. Banco De Oro Megaworld Corp D & L Industries Inc. Stock Symbol AC MBT BDO MEG DNL % Portfolio 19.97 19.92 20.02 20.45 19.63 Total Shares 370 2600 2770 57000 28800 Market Price 540.00 76.65 72.30 3.59 6.82 Board Lot 10 10 10 1000 100 Total Trade Value Market Value 199,800.00 199,290.00 200,271.00 204,630.00 196,416.00 1,000,407.00

I decided to pick the following stocks due its distinct leadership and characteristics in their respective industries. These companies were also recommended to me by my stock broker. AC: Ayala Corporation is the flagship holding company of the diversified interests of the Ayala Group. The Company was founded in 1834 and is the oldest and one of the largest conglomerates operating in the Philippines. It has a portfolio of diverse business interests that includes investments in retail and real estate (Ayala Land), banking (BPI), telecommunications (Globe), water infrastructure and management (Manila Water), electronics (Integrated Microelectronics, Inc. or IMI), automotive dealership (Ayala Automotive), and business process outsourcing (Azalea Group). AC registered a 33.2 percent net income jump for the 2nd quarter of 2013 (as compared to the same period last year). This was primarily driven by its property subsidiary Ayala Land (ALI)with its consolidated core income for the first half of the year amounting to P8.9 billion. MBT: Metropolitan Bank & Trust Co. is the Philippines second largest bank in terms of assets. Its primary business activities include borrowing and lending, tr ade and finance, remittances, treasury, investment banking, and savings banking. The bank had total resources of Php 765 billion and deposits of Php 585 billion as of 2008. It loans stood at 358 billion. MBT reported a net income of P6.77 billion during the 2nd quarter of this 2013. This is 119 percent up compared to last years. T his was primarily backed up by solid growth in net interest income. Its profits also benefited from a one-time gain of P3.1 billion from the sale of 20 percent of Global Business Power (GBP) as well as a healthy level of trading income.

BDO: BDO Unibank, Inc.: is a universal bank that provides a wide range of corporate, commercial, and retail services. BDO is a member of the SM Group of Companies, one of the Philippines largest conglomerates with business interests in commercial centers, retail and merchandising, financial ser vices, and real estate development and tourism .Despite the volatility of markets, BDO Unibank, Inc (BDO), reported a 36 percent increase in its profits for the 2nd quarter of 2013 (as compared to the same period last year). This brings its 1st half of 2013 net income to P14.1 billion. This is more than double its P5.8 billion income in the 1st half of 2012 and is already 66 percent of estimation of its earnings this year. Such 2nd quarter gains were driven by the growth in net interest income, sustained loan growth, and higher margins. BDO with its strong position to capitalize on the countrys positive economic outlook indicates continued long-term growth for BDO.

MEG: Megaworld Corporation: is a property company with two primary business segments namely: 1) residential sales, and, 2) office and retail space leasing.MEG is the most known for its township developments. These are communities that integrate residential, commercial, and leisure development. The concept is to live, work, and play in one place. Megaworld has six township projects in different stages of development, namely Eastwood City, Forbes Town Center, Mckinley Hills, Newport City, Manhattan Garden, and Cityplace. The trend in the BPO office segment greatly favors MEG. Fort Bonifacio continues to be the top choice of companies given its proximity to Makati, lower rental rates and better facilities. At present, Megaworld already has the biggest BPO office leasing portfolio in the area. With a land bank of more than 105 hectares in the Fort Bonifacio area, Megaworld has the capacity to further scale up its BPO office portfolio to take advantage of the strong demand.

D&L Industries (DNL): is the holding company of the Lao Family, with subsidiaries in the manufacture, development, and sale of several raw materials and components used by consumer companies in producing their end products. DNL also sells some commodity products such as refined oil and coco biodiesel. DNLs various subsidiaries are leaders in their respective industries, with each market share of at least 50 percent. DNL is considered an indirect consumer play with 84 percent of its revenues coming from the sale of ingredients and components used in the manufacturing of food, home, and personal care products. For example, several food products that we purchase from Jollibee, McDonalds and Krispy Kreme are developed either in part or in whole by DNL. Its focus on innovation will drive sales growth and margin expansion, eventually leading to higher profits.

January 27, 2014:

Stock Name Ayala Corp Metropolitan Bank & Trust Co. Banco De Oro Megaworld Corp D & L Industries Inc. Stock Symbol AC MBT BDO MEG DNL % Portfolio 19.39 19.79 21.82 19.55 19.45 Total Shares 370 2600 2770 57000 28800 Average Price 540.00 76.65 72.30 3.59 6.82 Last Traded Price 544.00 79.00 81.75 3.56 7.01 Board Lot 10 10 10 1000 100 Total Trade Value Change % Gain/Loss Market Value 201,280.00 205,400.00 226,447.50 202,920.00 201,888.00 1,037,935.50 37,528.50 3.75 Gain/Loss 1,480.00 6,110.00 26,176.50 (1,710.00) 5,472.00 37,528.50 %Gain/Loss 0.74 3.07 13.07 (0.84) 2.79 Action SELL SELL SELL SELL HOLD

January 27, 2014

Cash Balance: Actual Balance: 35.50 Stock Symbol SMPH DNL Total Shares 57400 28800 Average Price 14.66 6.82

Stock Name SM Prime Holdings Inc. D & L Industries Inc.

% Portfolio 80.79 19.21

Board Lot 100 100 Total Trade Value

Market Value 841,484.00 196,416.00 1,037,900.00

Total Account Equity: 1,037,935.50

I decided to sell AC, MBT,BDO and MEG and switch to SMPH. Due to the sudden climb of the PSEi breaking above the short term resistance of 6,000.00, I fear that the market may correct or go down in the coming week. Also according to recent equity research, the US and European markets were pummeled down late last week as heavier corrective action was seen. Due to its heavy decline, some corrective ripples may pulse through the Asian Market and enact some pressure on the onset of the week.

January 30, 2014

Cash Balance: Actual Balance: 35.50 Stock Symbol SMPH DNL Total Shares 57,000 28,800 Average Price 14.66 6.82 Last Traded Price 15.52 7.28

Stock Name SM Prime Holdings Inc. D & L Industries Inc.

% Portfolio 80.84 19.16

Board Lot 100 100 Total Trade Value Change % Gain/Loss

Market Value 884,640.00 209,664.00 1,094,304.00 56,368.50 5.43

Gain/Loss 49,020.00 13,248.00 62,268.00

%Gain/Loss 5.87 6.74

Action HOLD HOLD

Total Account Equity: 1,094,339.50

% Gain/Loss since January 20, 2014:

9.39%

Total Amount Gained: 93,897.00 as of Jan 30, 2014

The inclusion of SMPH in my stock pick is due to the companys reputation and outstanding performance in the mall business. A recent equity research also indicated that its mall business incurred an 18.4 percent growth in its net income for the 3rd quarter of 2013. This brings SMPHs net income for the first nine months of the year to P8.43 billion. This was driven mostly by the 14.2 percent increase in revenues for the first nine months of 2013. Also, growth in its China mall operations rebounded to 24.3 percent in the 3rd quarter of this year (coming from a low of 7.5 percent in the 2nd quarter). The said growth was attributable to the improved mall productivity and lease renewals for SM Xiamen, SM Jinjiang, and SM Chengdu. In the Philippines, on the other hand, revenues also grew by 7.9 percent in the 3rd quarter. In the last 18 months, they also added 698,000 square meters of mall space. The inclusion of SMPH to my stocks list also takes into consideration the merger between SMPH and SM Land, where earnings visibility will remain very high for the enlarged company.

I decided to hold my investment in SMPH and DNL due to the high potential of gaining higher profits in the next few months. This is mainly due to high consumer spending in the Philippines that will benefit the said companies.