Last updated on May 6th, 2020
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How to Use
Buy the stocks only when the price is below the “Buy Below Price”.
By following this model portfolio, you’re effectively using the basic strategy – “Buy Low, Sell High” .
The basics of Value Investing is buying great companies at a discounted price. By observing the “Buy Below Price”, you’re able to buy ONLY when potential upside is at least 15%.
Last traded market price for the company or index.
BUY BELOW PRICE
A level at which capital appreciation potential is already attractive relative to the fair value estimate. Any price below the Buy Below price is considered an attractive level to buy the stock.
FAIR VALUE (FV)
Fair Value is a company’s estimated worth or fair market value as computed by various ways specific to its industry (i.e DCF, NAV, P/BV, P/E) provided by COL.
COL Financial EIP List
A selection of Premium Growth Stocks carefully selected by the COL Research Team that represents listed companies that will continue drive shareholder value in the long-term. EIP is designed for long term investing using Peso Cost Averaging. Check this post for a comprehensive discussion of this passive strategy >> Easy Investing with EIP
Other financial indicators you can use
The PE ratio is the most commonly used valuations measure. It shows how much is paid for each unit of earnings. The PE of a stock describes the price of a share relative to the earnings of the underlying asset. The lower the PE, the less you have to pay for the stock, relative to what it earns. PE is also considered a relative valuation measure.
A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset
An asset is deemed to be overbought once the RSI approaches the 70 level, meaning that it may be getting overvalued and is a good candidate for a pullback. Likewise, if the RSI approaches 30, it is an indication that the asset may be getting oversold and therefore likely to become undervalued.
The difference between Last price and Fair Value in percentage (%). Most investors prefer to buy stocks with at least 10% Upside and ideally 15% and up.
Investment Guide’s Rating Definition
BUY – Stocks that have attractive fundamentals and valuations, based on COL’s analysis. COL expects the share price to outperform the market in the next six to twelve months.
HOLD – Stocks will either (1) attractive fundamentals but expensive valuations, (2) attractive valuations but near term earnings outlook might be poor or vulnerable to numerous risks. Given the said factors, the share price of the stock may perform merely inline or underperform the market in the next six to twelve months.
SELL – Both valuations and fundamentals of stocks are not favorable. COL expect the share price to underperform in the next six to twelve months.
Technical Guide’s Rating Definition[ezcol_1half]BUY – an up trend showing an ongoing upward drive
HOLD – stay with what you have or, if without a position, wait for a BUY
TAKE PROFITS – suggests a reduction in position as a loss in upward momentum may trigger a consolidating reaction or pullback to support
RANGE TRADE – proposes a trading buy from rebounds off supportive areas
LIGHTEN – reduce positions as range rallies seem to be tapering off
SELL – a down trend showing a continuing downward drive
SELL INTO STRENGTH – a down trend showing a technical rally that may offer better prices to sell to, especially if it nears next resistance[/ezcol_1half_end]
Stock(s) that have favourable fundamentals, and most likely to outperform its peers from their respective sector (Banks and Financials, Consumer, Property, etc) selected by COL. These stocks are the top bet for the “current” year.
HOW TO MAXIMIZE
1. Do NOT just buy stocks with the highest UPSIDE unless you are a hardcore Long Term investor, a “Contrarian” investor and has the patience of Warren Buffett and Philip A. Fisher who don’t sell for decades. Fisher’s longest was 49 years!
2. Buy when: it’s near the support as much as possible (check your broker for their Technical Analysis guide); RSI is oversold; MACD is bullish (or starting to be bullish); price closes above Moving Average; PSEi is on up trend.
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