Globe Beats PLDT

Innovation Wins!

#GLO overtakes #TEL with around 52% Market Share as it gains the largest chunk of the PH Telco market. Check out the charts I posted below on how Globe has continued to earn while PLDT has continued to decline. The stock price of PLDT has declined from 3,400 Pesos just a few years ago to around 1,565.00. In spite of that, the stock still remains to be expensive with no clear buy signal in sight.

Catch me in my live training events! (quick plug)

Here are the first events for the year! I will give you an update on our live sessions on UAE, Qatar, Davao, Iloilo, Cebu, Singapore in the next few weeks! The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! This is my passion and this is what I want to do over and over! To bring more consumers to investors! We will be teaching different techniques from how to select the right stocks up to how to find the perfect timing in buying and selling stocks.

Stock Smarts CDO — February 4- 5, 2017
Stock Smarts Cebu — February 18- 19, 2017
Stock Smarts Manila — March 4 – April 1, 2017
Stock Smarts Japan — March 18 – March 20, 2017
Stock Smarts Davao — April 8 – April 9, 2017

What happened?

Smart lost around 10 Million subscribers in the past years of whom have transferred to its competitor. This shows a strong shift to postpaid and data, driven by stronger spending power of the Filipinos.

In 2012, Globe Telcoms just had 30% market share. Fast forward 5 years later they are now on top.

Check out the chart below

From a revenue per share perspective, TEL (upper chart) showed flat revenue per share which eventually declined months after. While this was all happening, GLO’s revenue per share was zooming and earning like it has never earned before! The telco industry in general is still maturing and has not shown a large amount of growth over the years. With that TEL has been going with the general tide and has also not shown any sign of upward growth, GLO on the other hand is a better and more passive investment than its competitor because it has shown that in spite of a maturing industry, it has the been able to enhance its earnings by beating the competition and developing better services.

The Changing Tide

I think TEL failed to evolve quickly, thinking that they can still milk their traditional long distance calls and other outdated services which no one uses anymore. Viber, Facebook, Whatsapp, access to 3G and Wifi have eaten what used to be the core business of TEL where people don’t text and call anymore but they do their conversations via social media and online.

Dividends

The only thing to look forward to, for TEL right now is its dividends. The Dividend yield at this point is at 6.67%, (GLO will give you 4.82%) primarily because the stock has dropped by so much. One thing to be concerned of though, is because its earnings is declining, the dividends might not be as sustainable unless the company does something to turn things around.

More Updates Soon

I’ll update you should we see some signs of a turnaround for Smart. That’s why in business if you fail to adapt you lose. This post is not meant to scare you about what could happen to PLDT but more to educate you so you make informed decisions with your investments so you could: Trade Well. Trade Strong. Trade Smart

New Book and other books on Investing, Business and Finance.

I’m excited to share my latest book, Where Should You Invest? This will answer one of the biggest questions on the what, where and when you should invest on. I will also tackle the concept that there are certain investments that work well with others and some investments that don’t work well at a certain investment phases.

This is aimed to help investors have a holistic sense on how they can grow, maximize, and preserve their wealth!(Stock Smarts Book 4 is also coming this year) I also feature other books in my website with authors that I respect which have different expertise in Finance, Business, Investing and everything else in between.

For more details and to order: Marvin Germo Book Orders

*Pictures via google search