Starting this week, I will issue a weekly article to pick a particular company and discuss salient points on its performance. This will serve as a guide whether it is a good or bad investment to hold, and some other factors that should be considered that may have an impact in the company's future. I'll make it clear and concise as possible and try not to dwell much on the technical stuff. We start off this week with BPI.
Bank of the Philippine Islands (PSE:BPI) the third largest bank in terms of assets, continue to post good results as it reported P9.4 Billion in net income which is 52% higher than last period. Profits were driven by a strong loan performance and securities trading. Lending rose by 17.36% to P 480 Billion with equally good results in SME (19%), corporate (15%) and consumer (17%).
BPI stock price chart: 1 year
The company's stock price closed at 75.05, 2.065% higher than last week. While its stock valuation is near its all time high of 76.80, I continue to like BPI because of its continued strong growth performance. It has also stayed committed to sharing the profits with investors as it has not failed to issue dividends since 2006.
Overall I am confident that BPI will continue to deliver good results throughout the year. While there is no guarantee that its strong company performance will translate to higher stock valuation, it is a safe investment to hold for the long term. For day traders, it is probably best to wait until the excitement from the good first half performance subsides and for the stock price to dip a bit before having it in your portfolio.
Disclaimer: This article is solely the opinion of the blogger based on personal research. Any statement made is not a conclusion of absolute fact and is not intended to impose or persuade anyone's judgement.