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By: Marvin Germo | April 22, 2019

9th Most Actively Traded Stock

Investors are continuously watching over the easing inflation this year. Due to this active participation of investors, San Miguel Food and Beverage, Inc. (SMFB) stocks were the 9th actively traded stock last week. In a span of 3 days from April 15 to April 17, the data gathered showed that about 4.85 million shares of SMFB or equivalent to P543.33 million were on the trading platform. And last Wednesday, April 17, SMFB shares closed at P113.8, higher than the P112 closing price on April 12. What do you think caused this active movement? Are investors starting to expect something better and gainful to happen to this known food company?

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 Cebu —  April 6 & 7, 2019
Investing Insights Japan – April 13, 2019
Stock Smarts Singapore —  May 18 & 19, 2019
Investment Conference 2019 – May 25, 2019
Stock Smarts Manila —  June 15, 16, 22, 23, & 29, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stock Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar —  October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019

Expectations Due To Easing Inflation

The easing inflation somehow brings comfort to SMFB as reflected by the its investors’ actions. One solid reason why the firm had the most actively traded stocks is because investors expect better earnings this 2019. Considering that the inflation rate is going down, they believe that the margins for consumer companies, one of those is SMFB, will get its recovery this year. That expectation gave the firm something to look forward to when inflation continues to ease down. For investors out there looking for some great companies to invest in, it’s time you weigh your options and consider buying stocks from SMFB or alike firms.

SMFB Price-to-earnings Ratio 

While the data showed a net foreign buying transaction of P793.67 million, which obviously means that there is a bullish foreign fund for SMFB in the coming months, its price-to-earnings ratio has seen trading at 27.89x. If compared to other food companies like Universal Robina and Jollibee who were trading at 30.41x and 38.08x, this is much lower and considered as a cheaper option for investors. This report is showing us that investors already expected good figures from SMFB, which in fact, was achieved if we take a look at the 2018 net profit of the firm accounting for P18.2 billion or more than 5% higher than the 2017 net profit.

SFMB’s Net Income

Breaking it down into pieces, the first segment of SMFB, which is the beer and non-alcoholic beverages segment has generated an increase of 15.08% or P23.84 billion in figures as its net income. The spirit segment’s net income went up to 74.92% or P1.05 billion in figures while its food segment’s net income took a jump by 18.38% or P5.64 million. Meanwhile, the firm had an P18.25 billion net income attributable to equity holders of the parent company in 2018. Its consolidated net income after taxes hiked by 8.17% or P30.53 billion from P38.23 billion in 2017. This was due to the increase in the company’s sales and gross profit across its segments mentioned above.

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
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