What Is COL Financial’s Investment Guide?
Before we discuss COL Financial’s 8 banking stock picks, let me explain COL Financial’s Investment Guide first. COL Financial’s investment guide is based on fundamental analysis (financial performance of the company). They check the company’s earnings-per-share ratio (EPS), price-to-earnings ratio, price-to-book value ratio, and dividend yield.
Then, they come up with their own Fair Value based on their valuation criteria. That Fair Value serves as their recommended or Target Selling Price.
They also provide a Buy Below Price. According to COL Financial, you can continue peso-cost averaging on the stock as long as its current price remains below their Buy Below Price.
COL Financial also provides a Buy, Hold, or Sell rating.
How to Find COL Financial’s Investment Guide
Here’s how to find COL Financial’s Investment Guide:
1. Log in to your COL Financial account.
2. Click RESEARCH.
3. Click INVESTMENT GUIDE.
Why I Don’t Depend on COL Financial’s Investment Guide
While COL Financial knows the financial performance of any publicly-listed company in the Philippine Stock Exchange, it doesn’t know my financial DNA.
COL Financial doesn’t know the events in my life that concern money. It doesn’t know my mood for the day. It doesn’t know the percentage of risk that I am only willing to apply to a particular stock.
There are psychological factors in decision-making that you cannot get from fundamental analysis or technical analysis.
Only I can tell myself if I should buy, hold, or sell a stock relative to those factors that are unique to my financial DNA and investment psychology.
Don’t I know the financial performance of any PSE-listed company?
I do!
The financial reports of all PSE-listed company are publicly available on PSE Edge.
Since I also have access to the same financial information COL Financial has, I am capable to make a tailored-fit investment recommendation for myself.
This is the reason why I don’t offer a stock recommendation service. If I were to offer one, it would make me feel like I was telling you to forget that only you knew all your financial circumstances in your life. It would make me feel like I was demoting you from a rational being to a monkey.
I don’t believe that stock recommendation services exist for the busy people. That’s just a convenient excuse for the lazy. Some stock market-related services are exploiting investors’ laziness by providing ready-to-eat buy-hold-sell recommendations.
For your information, outsourcing is not an alien concept to me. I’ve been running my own content outsourcing company for more than two decades now.
An investment decision is not one you should outsource because nobody understands the events in your life that concern money more than you do. What you can outsource, as far as stock investing is concerned, is the training on how you can independently make data-driven decisions like I do. That’s what my stock investment consultancy service is about.
Is COL Financial’s Investment Guide Bad for Me?
I thought about phrasing that subheading as “Is COL Financial’s Investment Guide Bad for You?” but I decided not to because I only want to answer a question on my behalf.
If it were the early 2000s, COL Financial’s Investment Guide would be very helpful for me. But I’ve been into stock investing for more than a decade, and I already know how and where to find the data and compute the numbers COL Financial provides in its Investment Guide.
For beginners, you will find COL Financial’s Investment Guide helpful, particularly the computation of the financial ratios. However, I would recommend not to make investment decisions based on anyone’s Buy Below Price or Fair Value (or Target Selling Price). Read 4 Reasons to Stop Using Buy Below and Target Selling Price to know why.
Why Only 1 Out of 8 Banking Stock Picks of COL Financial Captures My Interest?
As I’ve said, I have my own methodology for identifying which stocks are worthy to be added in my watchlist, when to identify a confirmed buy signal, and how to buy and sell logically and less emotionally.
I am using my proprietary Market Sentiment Index indicator to get a data-driven basis if the downtrend or uptrend is likely to reverse or continue.
You’ll find out in the statistics below why only 1 out of 8 banking stock picks COL Financial recommends captures my interest to analyze it further.
Let me make that clear just in case you have a selective vision for the words you only want to read: “captures my interest TO ANALYZE FURTHER” and not “captures my interest to buy”.
But before that, I’d like to briefly explain the significance of my Market Sentiment Index indicator.
How can you assess market sentiment? Is it through conducting surveys or observing discussions within stock market-related Facebook Groups? However, ensuring the reliability and impartiality of their comments presents a challenge!
From time to time, I conduct surveys within Facebook Groups. My intention isn’t to gauge market sentiment but rather to inquire about the stocks they’d like me to cover in upcoming articles. This approach helps me maintain objectivity when selecting stocks to feature.
To determine whether I should retain my position or take preemptive action, I examine a stock’s overall market sentiment rating. This is particularly crucial when my trailing stop is still in place.
Market sentiment aids me in projecting whether the current trajectory of a stock’s price will persist or reverse course.
As an illustration, if a stock is experiencing a downtrend and the prevalent market sentiment leans bearish, it indicates that the downtrend is likely to endure.
In cases where a stock is in a downtrend but the market sentiment shifts to bullish, it indicates that investors might anticipate a bullish reversal.
Reiterating the point, notice the use of adverbs like “likely” and “might.” Our discourse revolves around probabilities rather than certainties.
Nevertheless, a data-centric approach trumps making decisions solely based on intuition. The former provides the chance to fine-tune strategies, while the latter does not.
On my website, you can find comprehensive explanations regarding the creation of my exclusive Market Sentiment Index indicator. Feel free to utilize the SEARCH feature and input “Market Sentiment” to access my additional articles discussing this topic.
Here’s the overall Market Sentiment rating for August 2023 of the 8 banking stock picks of COL Financial:
BDO Unibank, Inc. (BDO)
Market Sentiment Index: BEARISH
50 of the 88 participating brokers, or 56.82% of all participants, registered a positive Net Amount
28 of the 88 participating brokers, or 31.82% of all participants, registered a higher Buying Average than Selling Average
88 Participating Brokers’ Buying Average: ₱141.06727
88 Participating Brokers’ Selling Average: ₱142.01102
8 out of 88 participants, or 9.09% of all participants, registered a 100% BUYING activity
8 out of 88 participants, or 9.09% of all participants, registered a 100% SELLING activity
Bank of the Philippine Islands (BPI)
Market Sentiment Index: BEARISH
51 of the 87 participating brokers, or 58.62% of all participants, registered a positive Net Amount
29 of the 87 participating brokers, or 33.33% of all participants, registered a higher Buying Average than Selling Average
87 Participating Brokers’ Buying Average: ₱110.40180
87 Participating Brokers’ Selling Average: ₱112.39080
10 out of 87 participants, or 11.49% of all participants, registered a 100% BUYING activity
7 out of 87 participants, or 8.05% of all participants, registered a 100% SELLING activity
China Banking Corporation (CHIB)
Market Sentiment Index: BEARISH
18 of the 48 participating brokers, or 37.50% of all participants, registered a positive Net Amount
14 of the 48 participating brokers, or 29.17% of all participants, registered a higher Buying Average than Selling Average
48 Participating Brokers’ Buying Average: ₱31.07994
48 Participating Brokers’ Selling Average: ₱31.16334
8 out of 48 participants, or 16.67% of all participants, registered a 100% BUYING activity
22 out of 48 participants, or 45.83% of all participants, registered a 100% SELLING activity
East West Banking Corporation (EW)
Market Sentiment Index: BEARISH
20 of the 47 participating brokers, or 42.55% of all participants, registered a positive Net Amount
17 of the 47 participating brokers, or 36.17% of all participants, registered a higher Buying Average than Selling Average
47 Participating Brokers’ Buying Average: ₱7.00785
47 Participating Brokers’ Selling Average: ₱7.06856
10 out of 47 participants, or 21.28% of all participants, registered a 100% BUYING activity
16 out of 47 participants, or 34.04% of all participants, registered a 100% SELLING activity
Metropolitan Bank & Trust Company (MBT)
Market Sentiment Index: BEARISH
62 of the 89 participating brokers, or 69.66% of all participants, registered a positive Net Amount
26 of the 89 participating brokers, or 29.21% of all participants, registered a higher Buying Average than Selling Average
89 Participating Brokers’ Buying Average: ₱55.75999
89 Participating Brokers’ Selling Average: ₱56.71094
12 out of 89 participants, or 13.48% of all participants, registered a 100% BUYING activity
6 out of 89 participants, or 6.74% of all participants, registered a 100% SELLING activity
Philippine National Bank (PNB)
Market Sentiment Index: BEARISH
13 of the 43 participating brokers, or 30.23% of all participants, registered a positive Net Amount
17 of the 43 participating brokers, or 39.53% of all participants, registered a higher Buying Average than Selling Average
43 Participating Brokers’ Buying Average: ₱18.30901
43 Participating Brokers’ Selling Average: ₱18.31308
11 out of 43 participants, or 25.58% of all participants, registered a 100% BUYING activity
18 out of 43 participants, or 41.86% of all participants, registered a 100% SELLING activity
Security Bank Corporation (SECB)
Market Sentiment Index: BULLISH
53 of the 78 participating brokers, or 67.95% of all participants, registered a positive Net Amount
43 of the 78 participating brokers, or 55.13% of all participants, registered a higher Buying Average than Selling Average
78 Participating Brokers’ Buying Average: ₱80.95988
78 Participating Brokers’ Selling Average: ₱81.43464
25 out of 78 participants, or 32.05% of all participants, registered a 100% BUYING activity
7 out of 78 participants, or 8.97% of all participants, registered a 100% SELLING activity
Union Bank of the Philippines (UBP)
Market Sentiment Index: BEARISH
39 of the 62 participating brokers, or 62.90% of all participants, registered a positive Net Amount
29 of the 62 participating brokers, or 46.77% of all participants, registered a higher Buying Average than Selling Average
62 Participating Brokers’ Buying Average: ₱71.44156
62 Participating Brokers’ Selling Average: ₱72.18701
18 out of 62 participants, or 29.03% of all participants, registered a 100% BUYING activity
6 out of 62 participants, or 9.68% of all participants, registered a 100% SELLING activity
What Are Your Thoughts About the 8 Banking Stock Picks of COL Financial?
Did you find this article helpful? How has it helped you? In what way? Let me know in the comments below.
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