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Thursday, September 15, 2016

Reader Question: What's your take on $PIP (Pepsi-Cola Products Philippines, Inc.)?

Message from Anonymous to Filipino Investor [Sent on Sep 6, 2016]

Hello, Came across your blog and find some of the articles interesting. It seems you haven't written about an investment idea in a while - last one I can find in March 4, 2015 on AgriNuture

Curious to know if you have ever looked at or followed Pepsi? If so would be interested in chatting on the name. 


Message from Filipino Investor to Anonymous [Sent on Sep 8, 2016]

Hi Anonymous,

Thank you for your email. Yes, ANI was the last investment idea that we have written in the website but it certainly is not our last. We just happen to have a lot on our plate recently so we were not able to post a complete investment thesis for our readers. :-)

About Pepsi, we are bullish on this stock as it passed our quantitative multifactor model. That said we are a buyer of PIP at current levels [P3.11 per share on Sep 8, 2016].
Note though that our approach to investing is to construct a diversified portfolio of undervalued and fundamentally sound stocks and hold it for as long as the stock still passes our criteria or a more compelling cheaper stock presents itself. That said, we would be buying PIP along with other undervalued stocks and construct portfolio of say about 20 to 25 of them for the Philippines - in essence around 10% of the available stocks listed in the PSE w/c offers around 278 publicly listed companies.

As a disclosure, we have no PIP at the moment in our portfolio because we are already fully invested - should we have additional liquidity in the future, PIP will definitely be one of the choices. The last stock we bought was SGI at 1.25 last July 20 - you may want to consider this stock as it as also very cheap based our quantitative model.

Note that we will be posting this conversation in our blog under "reader questions" for the other readers to learn from it as well. Your name will be kept private. Let me know if this is not ok with you.

If you have further questions, let me know.

Filipino Investor

Message from Anonymous to The Filipino Investor [Sent on September 8, 2016]

Hi The Filipino Investor, 

Appreciate the reply. Have not looked at SGI, other than having low P/E what's the thesis around the stock?

How does the company's strategy and management meeting etc affect the quantitative part of your analysis? Or do you just select based on a quant screen?

Sure you can include but as Anonymous please.  

Message from Filipino Investor to Anonymous [Sent on Sep 14, 2016]

Hi Anonymous,

Here's our investment thesis for SGI.


This is not an investment advice and the author shall not be responsible or liable for any trading or investment decisions made based on this information.
The author hereby expressly disclaims any responsibility for any error or inaccuracy in the information.

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