DNL IPO on December 12

People who do stocks are all-eyes on D&L Industries, Inc. (Symbol: DNL) tomorrow, which will commence its initial public offering (IPO). Almost always, IPO's are hyped probably because it doesn't happen always, although this year there were already several companies who IPO'ed prior to DNL: GT Cap, East West Bank, Coal Asia, and Yehey (Although technically, YEHEY listed by way of introduction and is not considered IPO).

If there's hype, there's demand. DNL will be priced at P4.30 when it opens tomorrow, December 12, 2012. I read that it's over-subscribed; it means there's a strong demand. I didn't compute the P/E on my own but I read it's around 13.35. If it's true, the price is about average but on the lower end because P/E's are usually 16-17, but it should be compared with PE's of companies in the same industry.

I haven't participated in any IPO's yet, but I have already observed two. It's always hyped, and it usually goes up in the first day of trading, maybe even a few days after, then tumbles down after. DNL is a big company. It manufactures food additives and supplies large restaurants including Jollibee and Max's. This alone can attract attention and boost the hype.

For those who didn't have the chance to subscribe to IPO price, maybe you can buy tomorrow if the demand is good. But as with any IPO, I wouldn't advise you to hold it for too long until track record is proven, who knows, DNL can even be a blue chip someday.

And to add even more to the hype, DNL even have a countdown timer in its website:

Note: this is just an image and it is not working

PSE reaches a new all-time high

For the first time, the Philippine stock market advanced beyond 5600 points. Exciting times! I wonder how long will this growth be sustained. Still need to be vigilant on the looming US fiscal cliff issue and EU's never-ending financial problem.

Seems our economy is booming. Philippine economy grew by 7.1%, beyond the 5.5% expectation and GDP is up 6.5%, already beyond the government's target of 5-6% by year-end. The Philippines was recently  included in the Newly Industrialized Country (NIC) category, which is a term for a country that is beyond a developing one but does not yet satisfy the signs of a developed country; it's like a 2nd-world country lol. So far, inflation is under control at 3.1% last October. These are good signs; more reasons to invest and believe in our country!

I'm happy today because two of my stocks are on the positive side: Manila Water (MWC) and SM Prime Holdings (SMPH). The golden question is when should I sell to realize my profit?

Blue Chip Companies in the Philippines

You can check the list of Blue Chips here:
http://www.pesobility.com/stock/blue-chips


Last week, I started investing in the Philippine stock market. So far so good, I invested in several blue chips MWC, SMPH, and MEG in which some went up and some went down. The index of Philippine Stock Exchange currently consists of the 30 major companies. I've added the list in the community wiki. These are the blue chips of the Philippines. They're relatively a better bet than other stocks because they tend to be more stable.

I gained 1.3% so far, and I believe it's still beginner's luck. 1.3% may seems small, but compared to how much a bank savings account make? Like 0.5% per year?

It was quite an experience, but I still have tons more to learn. I don't know how to read financial statements or compute the actual price/earning ratio. I need to research more about the fundamental and technical analyses. These are the two main schools of thought when it comes to investing in stocks; fundamental teaches you what to buy and technical teaches you when to buy.

I will continue to write more about my experience in the stock market soon, but as for now, I need to sleep.