TEL, AC and ALI - Three hottest stocks pick which I own should be positioned at a SELL ALERT tomorrow first thing in the morning. The reason behind this is due to the possible correction after the MSCI rebalancing has been passed at the end of August. Most likely, TEL will suffer from a steep market correction due to MSCI rebalancing. CAVEAT guys! Holder of TEL, AC and ALI - be warned and decisive - should you own these stocks and is satisfied with the paper gains in your port - take heed to lock in gains and re-position later just to avoid the possible market correction. My TEL already had a 21.43% gain while AC is secured with a 27.30% and ALI having a 9.12% gain respectively. To understand further, take time to read this COLing The Shots key highlights from COL FINANCIAL: *The much awaited market sell-off due to the “ghost month” never materialized this August as the favorable impact of the MSCI rebalancing pushed the market higher. According to reports, three index heavy weights which together account for around 25.3% of the PSEi had their weighting in the MSCI Philippine index increased: TEL, AC and ALI. Consequently, as of this writing, the PSEi is up 4.1% for the month to date period. *We are removing TEL from our COLing the Shots stock pick list. The stock has been one of the biggest winners this past month, rising by 11.5% for the month to date period and is already trading above our FV estimate of Php3,345. We believe that investors should capitalize on the Run up of the share price brought about by the MSCi rebalancing to lock in gains. Fundamentally, nothing has changed to justify any significant increases in TEL’s fair value in the short term. We would like to stress that the TEL shares should be sold right away as the deadline for the rebalancing is end of August. TEL share prices would most likely suffer from a steep correction after the deadline has passed. *Investors who own AC and ALI can also choose to sell their holdings of the two stocks and buy them back at a lower price once the deadline of the MSCi rebalancing has passed. However, we are maintaining both stocks in our COLing the Shots stock pick list. Unlike TEL, both stocks continue to trade at a discount our FV estimate and have a greater potential for earning surprise as both companies are positioned to capitalize on the Philippine economy’s favorable long term growth. HAPPY INVESTING guys! P.S. - If you want to know the basic in the stock market, lets sit down first and let me discuss Financial Literacy and Investment 101 for you. I will align your finances to develop a habit of saving and eventually introduce you to passive income generating opportunities. You may contact me anytime you want and lets talk about it. #StockMarketUpdate #COLingTheShots #GhostsMonthVsMSCI #CasperTheFriendlyGhostIsTheGhostInAugust
Posted on: Tue, 26 Aug 2014 14:22:33 +0000
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