|
Interview with Joey
(December 18, 2002) When asked whether there are
too many brokers in the market:
He says, "I think in this
market, it seems we are all after the same clients, which is why
commission rates have dropped so far. Apparently, there is not enough
educational thrust or maybe there is just not enough disposable income.
Of course, the image of stocks has always been not so good, not as safe
as just putting it in the bank."
Best trade:
BW - He entered a few shares at around 4 pesos and
was able to sell some of it at the high 90s.
Worst trade:
Cyber - He got caught flat-footed in that Supreme
Court decision. He has a few thousand shares at P0.40 a share. The stock
is currently at P0.11 and he is still holding on to that position.
Stock Picks:
"For next year, I believe it's PLDT and SMC."
His thoughts on Meralco:
"...unless they change that Supreme Court
decision, and even if they are able to stretch out the payments of the
refund, maybe they have the cash flow, but definitely their net income
will suffer and as of now their balance sheet looks bad already. They
just got 8 to 28 billion of additional liabilities out of the blue
(laughs). I think the solution is they've got to find a new investor,
the problem is the prices. Maybe it may look good for some investors but
kawawa naman yung ibang shareholders. What about if they convert
their debt to equity? They're going to have to start with the bank
debt. That definitely is an option but it is easier to talk with the
bank than to talk with all those who want their refund. They cannot
force it. They all have to agree. And right now, I don't think anybody's
going to agree cause the feeling now is one of indignation..."
Market forecasts:
"Next year I don't think it is going to be good, it's
the year before the elections. The year prior to elections is always
bad. That's when all the mud-slinging starts although it already has
started. Everybody is trying to knock each other down. All the
mudslinging is in public. Cyclically, it's after the elections when the
market goes up." What
separates the men from the boys:
"I think you have to learn when to sell. Never mind
the buying, it's the selling that you have to learn."
Joey's email:
limubai88@yahoo.com |
