Tuesday, September 9, 2014

My Legal HOUSEband

I was all eyes on Double Dragon when I first decided to sell all my bluechips stocks venture into the 2nd and 3rd liner stocks.

Then DD collapsed back to 7.++ after reaching it's all time high at around 11.++. that was it, It's already expensive for my budget so I went to look for another that I could deem as one of my long term bagger as was taught to me when I joined TAP.

HOUSE was the result! I think I blogged about this sometime when I began buying. 

Bakit si HOUSE? 
I'm not very good with balance sheet and accounting stuff but I buy the stock because of how I think I understand it's fundamentals, and how it fits into my principle in life. Sometimes I also just do it logically, or because of my observation.

The following was the information I find about the company 8990 Holdings Inc. also known by it's stock code as HOUSE:

They have been ten years in the business prior to their first IPO which happened sometime in May. I remember when I was in Cebu, I once inquired from their office about acquiring a house from their company. I bought my first shares of HOUSE two days after it's IPO which is still believed to be at a discount at 8.33. 

At this point in time I'm still buying more shares of the company even if the price decreases so I can average down on my portfolio and build my base lower. I'm also anticipating dividends in the future because in the past they use to give .70 cents a share to their shareholders, which is a lot if you have large volume of shares.

It is true that Philippines has a backlog in housing projects, but when it comes to murang pabahay, HOUSE is a winner. Their target market are the working class. Simpleng pangarap ng bawat Filipino sa bansa ang magkaroon ng sariling bahay.

Year over year revenues from $3.8B PHP to $5.4B PHP
As per Bloomberg, it is impressive that the company has been able to reduce the percentage of sales devoted to cost of goods sold from 38.00% to 36.94%. This was a driver that led to a bottom line growth from $1.7B PHP to $2.2B PHP.

They have 96% collection success rate. Abangan nyo nalang ang iba pang mga balita jan sa ibang sources at tinatamad nako magsulat kung anupa ang masasabi ko tungkol kay HOUSE. 

I heard from sir JJ last Saturday during TAP classs, that HOUSE is planning to put up malls in the future, they had plans to team up with another big company. what company I don't know yet, but my hubby's speculation is Ayala. We'll see.

I posted my financial adventure like this here because I noticed that after the 2,000th mark, nobody reads my posts anyway. This article does not constitute a recommendation or an offer to sell or a solicitation to buy any financial product and stocks.I'm an independent trader and not affiliated to any financial institute (Not anymore). I encourage you to do independent research for your judgment with respect to the matter contained from this site. No liability whatsoever is accepted for any loss that may arise (whether direct or consequential) from any use of the information contained herein.

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