Property Boom!

Today was a good trading day. The PSE is up by 29.56 pts, and a lot of stocks in various industries closed at a gain. One industry that I've been waiting for so long to go up is the Property Industry, particularly Megaworld (MEG), Filinvest Land (FLI), and Robinsons Land Corporation (RLC). I think any of these stocks would only strengthen one's stock portfolio, in case he or she doesn't have a property stock yet. I'd also like to share some notes I chatted down recently from my perusal of these stocks' company reports that covered until the period of September 30, 2010 (RLC and FLI) and December 31, 2010 (MEG).

MEG

• Net Income on a year to year basis is increasing at a steady pace.
• Has numerous projects and joint ventures with various companies such as with Resorts World Manila that will develop Newport City located at Pasay. 
• Promotes a Learn-Live-Work-Play real estate concept that combines residential, commercial, business, and leisure in one area. (i.e. Eastwood City, McKinley Hill, Newport City, etc.)
• Offers quality brands to customers and has strong sales business model that even reaches overseas.
• Has strong income coming from their sale and development of residential homes that mainly target the high-end market.
• Earnings Per Share at year end (Dec. 2010) is 0.196 

FLI

• Net income on a year to year basis is increasing substantially.
• Has few projects. One of its major projects is a joint venture agreement with Cebu City government to develop 50.6 hectares located in the heart of the City.
• Revenues increased from mall and office spaces mainly because of the acquisition of 40% of Africa Israel Properties (Phil.).
• Has strong income coming from their sale and development of residential homes that mainly target the middle-class market.
• Earnings Per Share at year end (Dec. 2010) is 0.12

RLC

• Net income on a year to year basis is increasing, but on a decelerating rate.
• Many projects are promising, yet are either in the planning stage or in the development stage.
• Has a well-diversified real estate development and operations portfolio, which includes the development of residential, offices, malls, hotels & motel real estates to name a few.
• Has strong income coming from their Commercial Centers Division (Malls)
• Earnings Per Share at year end (Dec. 2010)  is 5.48 

In my opinion, MEG would be a safe choice because of its strong financials (debt to equity ratio is only 0.27:1 at year end) and continuous delivery of quality projects and unique business models. Secondly, FLI is a growth stock for me because of its potential to increase their revenues substantially on a year to year basis. Lastly, RLC is still a strong choice for me because of its high revenues (let me reiterate earnings per share is 5.48 at year end) and its diversified portfolio in  real estate development.

Looking at MEG's and FLI's charts, their uptrend looks strong and intact. Next week, I expect MEG to take megasteps until 2.5 and FLI to fly up to 1.40. As for RLC, I wish it made a larger white real body candlestick to clearly signal a bull move ahead. Nonetheless, I am optimistic about RLC and expect it to erect ascending white candlesticks until it reaches 14.2 in the next trading days. Out of the three, I think RLC is still a good stock to take a position for the upcoming property boom.  These are all conservative tps. :)