Saturday, January 6, 2018

stok tots: AC vs. SM: ano pick ko now? (06 JAN 2018)

AC and SM are the top 2 conglomerates in the PSE in terms of market capitalization at the moment: AC has a market cap of 661.57 billion pesos while SM has a 1228.67 as of yesterday 05 Jan 2018 ... and they are as of late neck to neck in the price appreciation race: AC closed 1065 while SM closed 1020 ...

if one has unlimited funds ... it is understandable if one has the two stocks in ones portfolio ... but if one has limited money and is to pick one of the two ... what would one choose? AC or SM?

im not using technical analysis as basis here ... im using the simple price earnings ratio to make my choice ...

using the PER .. the estimated PER of SM for 2018 at 1020 using ABCAPs 29 Dec 2017 valuation table is 30.39x ... the estimated PER of AC is just 20.88x ...

so using the 2018 price earnings ratios ... AC is much cheaper at this moment than SM ...

at SMs PER ... AC would be 1550.04!

last Thursday .. i sold all my SMs at 1060 ... i bot it at 906 on 04 Oct 2017 ... up 17%

i am now thinking of using my proceeds to add to my AC or ALI ..