Nickel Asia Corporation (PSE: NIKL, RIC: NIKL.PS, BBG: NIKL.PM) reports 12% increase in sales volume for the nine-month period ended September 30, 2015 on a year-on-year basis, but that peso revenue slumped by as much as 40% for that same period YOY. We’ve seen soft metal prices, particularly LME Nickel price and nickel ore prices, in the last year or so, thus a huge drop in NIKL’s and similar mining companies’ revenue.
I’m attaching the press release in full below, but the main points can be summarized in the graphs that follow:
Back in the late 1990s, I received a steady stream of research reports from prestigious Wall Street brokerages recommending the stocks of, you guessed it, publicly traded pay phone companies. There were four of them still in business at the time, and as the reports pointed out, they were all attractively “cheap” by traditional valuation measures, such as their price-to-earnings multiples or market capitalization-to-revenues ratios. Not only that, but recently enacted deregulation was allowing pay phone operators to boost the prices they could charge for local calls, leading to predictions of new “windfalls” on Wall Street and in the financial media. Of course, in hindsight, we can see that those forecasts were wildly off the mark and that there was a clear reason those stocks were such bargains: They were well on their way to oblivion. The widespread adoption of cellular phones had already started, and it wasn’t going to stop. But at the time, many investors dropped their coins into the slots of these classic value traps and never got them back.
I have always welcomed the idea of ETF’s (Exchange Traded Funds) in the local bourse. Think about it, no more minimum holding periods nor sales load to worry about when buying and selling ETF stocks in the local stock exchange, except of course for the usual minimal fees and taxes.
In my opinion, this is a more liquid type of investment than regular mutual funds or UITF’s in a sense that you can sell your shares anytime without worrying about minimum holding periods and their corresponding charges. Besides, this is still a managed fund, thus you need not devote any more time in research for stocks to pick.
Reviewing these numbers before investing to a new fund is a good exercise for it will give you better perspective at which fund you want to bet your money on. These return numbers are a “look back” at how the funds were managed, and thus performed, in the last 3 or 5 years. Continue reading “Comparing Mutual Fund Returns”→
Absolute Traders produced a video interview with Jay Peñaflor, PSE Head of Market Education, to discuss stock investing, comparing it to fixed income investments, the PSE Trade, and tips on stock investing. You may watch the videos below.
What I really find interesting is the second video focusing on the PSE Trade system, which has the capability to allow trading of other investment instruments in the future like derivative instruments and even commodities. But what really looks more promising to me is the possibility to buy and sell ETF’s or Exchange Traded Funds.