Philippines Weekly Stock Pick

After scanning the Philippine stock charts, I’ve found a company in the construction and infrastructure sector that looks like a decent buy. I say decent, because these days in the markets here and abroad, it’s been hard to find clean low risk high reward trade setups on long buy positions on Philippine stocks for a variety of reasons I won’t go into right now. That being said, there’s always money being invested somewhere, and hopefully this Philippine stock pick is a place traders and investors might be looking at to invest and trade in.

Philippines Weekly Stock Pick: EEI Corp. Long Position Ticker EEI.

As of Friday May 16th, EEI close price was P2.90.

Look to buy on weakness at P2.70 to P2.40. If it does hit P2.40, this looks like to me a good bottom to buy in big. In market conditions such as these, it might me a good idea to nibble and accumulate a little bit instead of “backing up the truck” all in one trade. This is also called averaging in with several positions as opposed to buying in with everything you have in one trade.

Remember to use stop-loss in case the price keeps heading south so you don’t take a bigger loss later. An 8% to 15% stop-loss would be acceptable in this case. Of course your stop-loss depends upon your appetite for risk, and your position size. Different strategies have different reward risk ratios, so do your homework, and decide what your own reward risk ratio is before putting real money on the line.

January 30th 2008 EEI recent low price was P2.30. If this price doesn’t hold, look for more downside, possibly down to P1.90 before significant buying support comes in.

EEI Corporation Earns P304 M in 2007

EEI Corporation posted audited consolidated net income of P304 million in 2007, up 52 percent from the P200 million it earned the previous year. 2007 Year End EPS Earning Per Share ending 12/31/07 was 0.3038.

EEI Corporation was founded in 1931. Through the years, the Company expanded into the provision of general contract and specialty construction services, and has been involved in the construction and erection of large-scale heavy and light industrial projects, infrastructure and property development projects both in the Philippines and abroad.

EEI has an unmatched track record as one of the country's leading construction companies. The Company is a member of the Yuchengco Group of Companies, a leading diversified conglomerate with interests in banking, financial and insurance services, education and property development.

EEI Products And Services

EEl Corporation is one of the Philippines’ leading construction companies and a major player in power, oil and petrochemical, infrastructure, commercial and industrial sectors.

With more than 75 years of experience, it has a proven track record of outstanding quality, reliability and better than on-time delivery of projects.
They have reputation for world-class construction expertise and our resolve to be cost-competitive, the EEI of today is able to take on projects at the scale, complexity and range of work specialization required by proponents and principals, anywhere in the world.

EEI is ISO 9001:2000 certified.

EEl is now a leading provider of general contracting and specialty works services and equipment systems for the building and property development and infrastructure sectors, mining and cement, communications, food processing, packaging products and other manufacturing industries, especially for fast track projects.

Infrastructure

Roads & Bridges
Seaports & Airports
Mass Transport & Railways
Telecommunications
Irrigation & Flood Control
Dessalination Plants
Water Distribution
Sewerage & Waste Water Treatment Plants

Buildings & Property Development

Office/Residential Condominium Buildings
Mixed-Use Development
(Malls, Car Parks, Exhibition Hall)
Schools & Hospitals
Amusement & Leisure Parks
Housing
Industrial Parks

Heavy Industry

Petrochemical Plants
Oil and Gas Plants
Mining Plants
Cement Plants
Water, Waste water Treatment Plants
Power Plants (steam, gas, coal, geothermal & hydro)
Transmission Facilities

Steel Fabrication

Structural Steel
Piping
Modular Fabrication
Pressure / Non-pressure vessels
Tank

Light Industry

Food & Beverage
Semiconductors
Automotive
Textile
Pulp & Paper
Glass
Packaging
Metal

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