PSE market update 5-17-2011

Global Market experiencing choppy markets and on the negative territory, while our PSE market is still climbing and trying to hit the 52 week highs.

But news are suprisingly negative, the point of scenario in a bull market where companies are trying hard but always gets short on projected earnings, thus making a stock overpriced from its fair value.

Let me post some of the summaries of Q1 2011 earnings updates:
AEV - down
AP - down
FGEN - down
EDC - down
JFC -down
EEI - down
PNB - very huge down
MPI - down
Meg - down
abs - down
gma - down
DGTL - down
CEB - down
MWC - down
MER - down

Increase in profit:
BPI - 4.5% up
BDO - up
GLO/TEL - flat/up
PCOR - huge up
SMC - up 100%++ only due to Manipulative increase when it was at March 31,2011
PX/AT/other minings - up

With this kind of market, companies are getting hard to reach their quota, inflation goes up, people cut spending, thus affecting their income.

What do they have in common??... Unstable Stock PRices/ Overvalued Stock Prices. We may be good in Technicals, but somehow, we must seek for Fundamental Reasons to give Fair Value (FV) to a stock. If this trend (getting hard to hit consensus forecasts, lower earnings each and every Quarter), this can pop the bull market out of PSE or at least create a wall where we cannot see a new High. Investment firms forced to rate their BUY rating to HOLD, and HOLD rating to SELL, what's the impact? Investors panic, and we experience sell-offs.

HOLD and lighten if its still at 4300-4400 level.