{"id":321290,"date":"2023-02-01T14:33:45","date_gmt":"2023-02-01T06:33:45","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=321290"},"modified":"2024-09-01T22:39:12","modified_gmt":"2024-09-01T14:39:12","slug":"stock-picks-bottom-fishing-play-2023","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-picks-bottom-fishing-play-2023\/","title":{"rendered":"5 stock picks for bottom fishing play in 2023"},"content":{"rendered":"\n

Recommendation<\/h2>\n\n\n\n

Given the sharp drop of the PSEi in the past two days, we think the market has slowly priced in much of the uncertainty regarding the upcoming decision of the U.S. Federal Reserve, therefore, we would look to buy at levels near key support of 6,600 and trade the sideways thereon but maintain some cash on the side to take advantage of any potential dip beyond the aforementioned level. <\/p>\n\n\n\n

At this point, bottomfishing would still be the ideal play and our five stock picks for this play would be:<\/p>\n\n\n\n

    \n
  1. CNVRG (Target Price: P35.00\/share)<\/li>\n\n\n\n
  2. ALI (Target Price: P44.00\/share)<\/li>\n\n\n\n
  3. GLO (Target Price: P3,040\/share)<\/li>\n\n\n\n
  4. SECB (Target Price: P140.00\/share)<\/li>\n\n\n\n
  5. MER (Target Price: P365.00\/share)<\/li>\n<\/ol>\n\n\n\n
    <\/div>\n\n\n\n

    Analysis and Opinion<\/h2>\n\n\n\n

    Yesterday, the PSEi plunged by 2.55% to 6,793, the sharpest drop since December 2, 2022. The market was wary that the U.S. Federal Reserve may hint on raising rates beyond the widely expected peak rate of 5.0% following the strong US GDP growth in the 4th quarter in its upcoming FOMC meeting (Jan 31 to Feb 1). <\/p>\n\n\n\n

    Looking at top index losers and gainers, investors were visibly focused on resiliency of earnings in the light of the present upside risks to interest rates. We note that highly leveraged telco incumbents (GLO and TEL), largest property developer ALI, and capex-intensive ACEN have all seen their share prices dropping the most and a key reason behind this is the potential impact of further rate hikes on their EPS expectations. <\/p>\n\n\n\n

    Meanwhile, low-leveraged CNVRG and consumer staple PGOLD were two of the top index gainers and this can be attributed to the resiliency of their business model and balance sheet against rising rates. <\/p>\n\n\n\n

    Now going forward, given that it remains uncertain on what position will the Fed take (whether it will be taking a pause after the 25-bp rate hike or will be signaling for a higher peak rate), it is difficult to fully determine the trajectory of the index from a fundamental standpoint.<\/p>\n\n\n\n

    We believe the market has slowly priced in much of the uncertainty regarding this scenario, therefore, we would look to buy at levels near key support of 6,600 and trade the sideways thereon but maintain some cash on the side to take advantage of any potential dip beyond the aforementioned level.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

    Here\u2019s a commentary on an important issue or event affecting the stock market<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1372,11],"tags":[],"class_list":["post-321290","post","type-post","status-publish","format-standard","hentry","category-stock-picks","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/321290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=321290"}],"version-history":[{"count":3,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/321290\/revisions"}],"predecessor-version":[{"id":321294,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/321290\/revisions\/321294"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=321290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=321290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=321290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}