MRSGI released impressive figures as its net income jumped 45% for the 2nd quarter of 2017! New stores that are now operational triggered the growth for the company during this period. This is positive news for the company as the net income of the company increased from 209 Million Pesos to 305 Million Pesos! Will this be enough to bring the stock even higher? Does this change any of the fundamentals of the company? Let’s try to break it down even further1
Catch me in my live training events! (quick plug)
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! If you would like to know more on how you could time the market checkout the trainings below.
Stock Smarts General Santos — August 25 – August 27, 2017
Stock Smarts Manila — September 9,10, 16 & 17, 2017
Stock Smarts Cebu — September 30 – October 1, 2017
Stock Smarts Davao — October 20 – October 22, 2017
Stock Smarts Malaysia — November 4 – November 5, 2017
Stock Smarts Sydney Australia — November 11 – November 12, 2017
Stock Smarts Singapore — November 25 – November 26, 2017
News items like this further validate our very strong consumption driven economy! You can never go wrong when you follow where the economy is headed! The economy will always give you clues on where you should invest and it is telling us, consumption related companies like MRSGI are here to stay and will dominate and grow even further as more Filipinos spend!
What I like about MRSGI is the stock just continues to grow year after year! That’s what we like! We want a company that will continue to earn in spite of competition and aggressive spending and expansion. Also if you compare MRSGI to PGOLD and RRHI the stock is relatively cheaper with a P/E of 15.86 right now. The stock also has a relatively decent ROE of 12.41.
What more are you looking for? You have a fundamentally sound company with a positive news surrounding it!
The chart below shows us that the stock bounced from the support at 3.86. Should the stock continue to stay above 3.86 a possible progression and target price could be found at 5.20. This represents a 35% upside from the bounce from the support. If the stock fails to hold above 3.86, the stock could drop further down to 3.5.
I hope this helps you in your trades. Please do make your own due diligence before you would act based on this news item. I hope you would trade out of a systematic strategy based on your own risk tolerance and knowledge of technical and fundamental analysis. If you want to know more about how to trade with a strategy, I hope to see you in our Stock Smarts events. God bless you and may the stock market bring you closer to your dreams of financial freedom!
