COL Financial Stock Picks – While browsing my COL Financial dashboard, I noticed a headline that says – “New Kid on the Block“. I was intrigued and read the long article. The new kid is COSCO, the holding company for Lucio Co’s various businesses in the consumer sector with core holdings in food retail, liquor distribution and real estate.
This is the first time that COL Financial will monitor this stock. That is why COL Financial says COSCO is the “New Kid on the Block“. I am sold to the potential of this stock and I will include this in my portfolio, apart from the Truly Rich Club SAM Stocks that I religiously invested my money.
One reason that I will buy COSCO is because they are undervalued right now.
Undervalued consumer conglomerate. We believe COSCO is undervalued and deserves to trade at levels closer to other consumer stocks given that the company derives 77% of its net income from PGOLD and liquor distribution. At current prices, the stock is currently trading at 20.2X 14E P/E, below the industry average of 32.2X for other consumer stocks. Additionally, we believe that the market has not yet priced in COSCO’s liquor distribution, real estate and mining assets. Based on the current market price of PGOLD, COSCO’s stake in the company, in addition to its net cash position, already approximates the current share price of COSCO.
COL Financial Stock Picks Rating
Fair Value (Php) 13.85
Current Price 10.40
Upside (%) 35.78
To maximise my earnings, I will follow the Truly Rich Club SAM Stock target price (20%) system.
Pinoy And Money Stock Picks COSCO
Target Price is P13.85
Buy Below Price is P11.08
Current Price is P10.40
Date Purchased April 24, 2014