Coronaconomy Stocks you should buy now
Jollibee Foods Corporation (JFC) was incorporated on January 11, 1978. The Company’s principal business is the development, operation, and franchising of quick-service restaurants (QSR) under the trade names “Jollibee”, “Chowking”, “Greenwich”, “Red Ribbon”, “Yonghe King”, “Hong Zhuang Yuan”, “Mang Inasal”, “Burger King”, “Highlands Coffee”, “Pho 24”, “Hard Rock Café”, “Dunkin’ Donuts”, “Smashburger”, “Tim Ho Wan” and “Tortas Frontera”. The other activities of JFC include manufacturing and property leasing in support of the QSR systems and other business activities. Last 2019 JFC bought an American coffee chain founded in 1963 The Coffee Bean & Tea Leaf.
There is no other stock that can represent Filipinos other than JFC, every one of us knows their famous Chicken Joy growing up. The number one fast-food chain in the whole wide world is McDonald’s, aside from the Philippines, because we love that red big bee. JFC has 5,981 stores as of end-February, composed of 3,317 stores in the Philippines and 2,664 stores abroad. Those located overseas are in China, Vietnam, Brunei, Hong Kong, Singapore, Macau, Malaysia, Indonesia, United States, Canada, Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Bahrain, Oman, Italy, United Kingdom, and Guam.
This Coronaconomy when the PSEi is at a 40% discount this is the best time to buy JFC. Last March 19, 2020, in the midst of COVID-19 market reaction the stock its a low of 91.0 Pesos per share and it has a 52 week high of 306 Pesos per share, a couple of weeks later if jump to 140.0 Pesos per share this goes to show how resilient this stock is.
SM Prime Holdings, Inc. (SMPH) was incorporated on January 6, 1994, to acquire and develop real estate, conduct and maintain commercial shopping centers including shopping center spaces for rent, amusement centers, movie or cinema theaters, and to construct and manage buildings such as condominium, apartments, hotels, restaurants, stores and other structures for mixed-use purposes. The Company has now four business units, namely, malls, residential, commercial, and hotels and convention centers.
As of December 31, 2018, SMPH has 72 malls in the Philippines and seven shopping malls in China. The malls in China are located in the cities of Xiamen, Jinjiang, Chengdu, Zibo, Chongqing, Tianjin, and Suzhou. The Company has 44 residential projects, 13 commercial projects, six hotels, four convention centers, and three trade halls. SMPH also owns Sky Ranch, an amusement park in Tagaytay City and within SM City Pampanga.
Most of us know the history of the great businessman Henry Sy, which he started his mall empire from a humble ShoeMart in Manila on 1958, SM Investments Corporation (SM), and SMPH are pillars of the Philippine Economy. In the midst of the COVID-19 market reaction last March 19, 2020, the stock drop to a 52 week low of 19.90 shares, and after a couple of weeks jumped to 30 pesos per share, SMPH 52 week high is 43.35 pesos per share.
Manila Electric Company (MER) is a private distribution utility organized on May 7, 1919, which holds a congressional franchise under Republic Act (RA) No. 9209 effective June 28, 2003. RA 9209 granted MER a 25-year franchise valid through June 28, 2028, to construct, operate, and maintain the electric distribution system in the cities and municipalities of Bulacan, Cavite, Metro Manila, and Rizal and certain cities, municipalities, and barangays in the provinces of Batangas, Laguna, Pampanga, and Quezon.
Even though MER is not that badly hit by Coronaconomy because it is classified as a defensive stock, the stock is currently at a discount, March 19, 2020, it hit a 52 week low of 189.70 pesos per share and couple of weeks later bounced back to 260.00 pesos per share, MER has a 52 week high of 391.00. I love MER even before the Coronaconomy because it provides investors Dividends consistently so if you are a long term investor who wants a great value for your money this stock is for you.
Cebu Pacific, Air (CEB) , CEB accumulate massive losses because the Coronaconomy but the company will survive as it did before in the past, its currently asking financial assistance to the government to cover the losses and cost to maintain the airline that is why the stock plummeted. The Stock currently trades at 48.35.
As part of the Big 3 airlines in the country, CEB was heavily hit by Coronaconomy On March 15, 2020, It was announced that all domestic flights to and from the Ninoy Aquino International Airport in Manila. were canceled due to the rising cases of the Coronavirus in the Philippines. On April 8, 2020. After the ECQ measures were extended to April 30, 2020. Cebu Pacific announced that flights will remain suspended until the said date.
BDO Unibank, Inc. (BDO), Foreign investors love BDO after the Coronacomy they will rally to buy BDO again because of the steady growth of the SM Group tied bank, 52 week low 75.00, 52 week High of 161.80 and currently trading at 101.00.
BDO boasted its record-high net income in 2019 was on the back of the “strong performance of its core recurring income sources”.Net interest income grew to P119.9 billion, up by 2.19% from the P98.3 billion booked in the preceding year.
Coronaconomy Stocks will yield great returns in the future once a vaccine is released there is going to be a rally in the global market and that is for sure, the key is to position yourself with this great value stocks. The biggest week-month drop of the PSEi since Oct. 27, 2008, when it lost 12.27%, and its lowest close since Dec. 18, 2012, when it hit 5,636.59. It’s like the stock market time-traveled back to 2012 that how discounted the market is right now.
A seasoned fund manager friend of mine said last March in midst of the worst trading week of PSEi, “Buy everything in the Market this is so low, it’s crazy!” the market is trading at 4000 levels at that time. As of April 30, 2020 market closed at 5,700.71, the take away here is, right now cash is king everyone needs money that is why if you have the extra money to invest do it now, this is a once in a lifetime sale in the PSE. Remember the Philippines is an emerging market compared to other countries we are young economy starting to boom we still are even if we are on the Coronaconomy at the moment.
-Stockbytes! PH, May 3, 2020.
Related: The Coronaconomy Battle, ; Emerging Markets VS Coronaconomy;
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