Image by happy via via FlickrSM Development Corp.
Recommendation: Accumulate on Weakness
SM DEVELOPMENT Corp. is one of the most attractive stocks to buy nowadays given its rosy growth prospects, according to brokerage firm A&A Securities, Inc.
Technical-wise however, analyst Jeng T. Calma cautioned its share price has already peaked, offering less gain to interested investors.
“SMDC’s closing price of P7.60 per share last Friday is just 40 centavos away from its resistance level of P8 per share — its all-time high,” she said.
A favorable outlook on the property sector, the company’s future expansion plans and profits jumping by 24% to P1.3 billion in the first half all contributed to the rise in SMDC’s share price to P7.60 last Friday from just P7 apiece the other week, according to the analyst.
Ms. Calma advised investors though to wait until the stock’s price fall to at least P7.50 apiece.
“With the market projected to be in the bull-run, I believe there is still room for SMDC’s share price to rise… For now, better wait for some correction,” she said.
| Share Price | 7.6 |
| High (past 52 weeks) | 7.6 |
| Low (past 52 weeks) | 3.75 |
| Market Cap. (M) | 41,771.70 |
| Price-Earnings Ratio | 11.74 |
| Earnings Per Share | 0.34 |
Gloria Krisana L. Gallezo
September 6, 2010
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