This post will be all about the charts of SMPH, the other stocks that you have requested will be in the next posts. I will try to post the top requested stocks tomorrow.
One of the reasons why I am writing this is I just got inspired after having the chance to meet Hans Sy for the second time. I learned so much from him in an hour of lunch. It was like listening to one of the greatest business minds in our generation. I believe that is why SMPH is one of the best stocks out there is because they have great entrepreneurial leadership.
If you are a long term investor
If you are a long term investor, this is a stock that you can accumulate and hold on for the long term. (This is also part of my Mythical Five of Stocks) Check out the chart above to see how the company’s income has continued to grow. This is a stock that grows along with the economy and our population, as you all now we are a consumption driven economy. As more Filipinos have the power to spend the more SMPH will earn. SMPH has currently 55 malls and 12 more about to open in the next 2 years! Imagine them adding around 25% to their existing base in just 2 years! This is marking SMPH as the market leader in terms of mall operations. From a long term perspective, the stock of SMPH has not looked back after the stock dropped to 6 after the recession in 2008.
Unless our culture changes and Filipinos stop going into malls I don’t think SMPH will stop from earning. If you are also a person that wants to use Peso Cost Averaging just keep on buying! I believe nothing has changed fundamentally that you should be alarmed of that would cause you to sell. Why sell and transfer to a less superior company if your goal is to hold on to this stock anyway.
Just a quick plug before we proceed with this article, we will be having Stocks Smarts UAE 2016! This time we will have over 15 training sessions over a 2 week period! If you are investing already in mutual funds & real estate and want to take it a notch higher and invest in the stock market, this is something I would like to invite you to attend! If you are from other regions of the world, we also have Stock Smarts in Singapore, Australia, Manila, Cebu, Qatar and New Zealand in the next few months and also ICON will be back at Samsung Hall this year! It is my greatest desire to see more Filipinos abroad and for them to learn the right way to invest. It’s just a bout time that we reduce scams and we see more people move in from consumers to investors!
For position traders, the stock is still bullish for the long term and you can still hold on to your positions.
Based on my analysis, the stock will still remain bullish as long as it holds and stays above 21. With that said, strategic areas for you to buy SMPH could be found at 21 and 21.3. I think that would be a relatively cheaper price for you to buy the stock while it is still bullish. You have to remember, a stock that is bullish will continue to go up until any sign of reversal is evident.
How long will the stock stay bullish? I’ll give you an update when if there will be any signs of reversal or any sign to take profits. But as for now, enjoy the ride! To those who are earning congratulations!
For Quick Traders:
The stock bounced from the support at 21.7 last Friday. With that it solidifies the support range at that area. For those who have bought because of that bounce you can peg your target price at 22.6. SMPH may experience some resistance at that area so if the stock fails to break past that you may lock in your profits. Just a disclaimer, if SMPH fails to hold on to 21.7, the stock may drop and retrace back to 21.3 or to as low as 21 over the short term.
What I would want to watch out for is SMPH breaking past 22.85, if it does it will take SMPH to around 25 or 26. This would be something interesting to watch later on.
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