Manila, Philippines

SMDC and Stocks Picking via Shopping

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Traversing EDSA daily allows one to get a glimpse of what companies are doing, in terms of their new ads, properties, and for developers and construction companies, their latest acquisitions, projects and ongoing constructions.

Fundamentalists (type of stock investor) oftentimes use this to gauge the health of companies they want to invest in. Peter Lynch actually considers this as company shopping. And based from what I’ve seen, SMDC has lots of projects and acquisitions lately. Major acquisitions in prime locations. Simultaneous constructions. Strikes me as very aggressive.

I’ve seen two old buildings in EDSA that were now bought by SMDC. One near Shaw Blvd which used to be occupied by a battery brand with a hyper tireless rabbit, and one near Boni MRT station, being sold by JLLS previously, and beside the woodlands. Further, SMDC actually announces that they’ve bought the property already via visible signage, which I think is a good thing for the company (we’re the good guys!). Good publicity and inviting to potential investors and occupants alike.
Currently, SMDC has simultaneous constructions for their SM Residences condominium series all over Manila dubbed as Field, Sea, Light, Blue, Green, Grass, Jazz, etc. Comparing just the properties being constructed in Boni station will show that they can actually construct very fast. The woodland showroom has been there for years (part reason why I bought their stocks years ago) whereas SMDC just announced this year that they’ve bought the property beside the woodland. Lo and behold! Construction for both properties are in full swing, but Light residences of SMDC is definitely nearer its completion. It will definitely top off way before the woodlands. SMDC constructs fast. I hope quality is maintained though. I hope quality is not compromised and sacrificed just to roll-out and top off projects asap. But knowing SM, it should not be the case.
SMDC is very active in its projects for the past years. I’m sure this future growth is incorporated in their stocks. I’ve been wanting to buy SMDC stocks but I think already got behind (Sep09: 4.00; Sep11: 8.38). These recent acquisitions are probably incorporated already in current prices. Or at least that’s what people who subscribe to efficient market hypothesis and future-thinking market prices will say. But we also know that markets are driven with speculation, greed and fear. The Philippine stock market is not an exception to this.
PS. I just hope occupancy rates of their projects remain healthy. Anyway, I don’t think any SM mall has failed to generate fat profits. I take it that they also expect SM residences to be as attractive and effective.
PSS. Speaking of SM Malls, SM Montalban please.

PSSS: Just saw recently when I passed by Boni that the woodlands is now being endorsed by Venus Raj while Anne Curtis (previously Marian Rivera) remains as SMDC’s endorser. So take your pick!
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