Spotlight: Vista Land & Lifescapes Inc. (VLL)

Business Overview:

This is an investment holding company of Senator Manny Villar, which concentrates mostly on Philippine Real Estate businesses.  VLL serves as the parent company to the following subsidiaries:

Brittany Corporation (100%) - Luxury houses for the high end market segment (Php9M++) in Mega Manila.  e.g. Portofino, Crosswinds, La Posada, Mosaic and Avant.

Crown Asia Properties (100%) - Middle market housing segment (Php3.5M-Php9M) in Mega Manila.  e.g. Citta Italia, Maia Alta, and Ponticelli.

Camella Homes (100%) - low cost (below Php1.3M) and affordable housing segment (Php1.3M-Php3.5M) in Mega Manila.  e.g. Tierra Nevada, Nova Romania, Cerritos, Pacific Residences, and Trevi Towers.

Communities Philippines formerly known as Crown Communities (100%) - residential properties outside MM; from low-cost to middle market segments. e.g. Savannah (Iloilo), Plantacion Meridienne (Batangas), Solariega (Davao), Frontera (Cagayan De Oro), Azienda Milan (Cebu), and Wedgewood (Pangasinan).

Vista Residences (100%) - Residential high-rise condominium projects across the Philippines.

Manny Villar started out this family business focusing on low cost housing (large-scale production) and initiated selling through house & lot packages.  Their business is now divided into different market segments and also involves vertical projects (condominiums).

Quick Numbers:

Fundamentals

Book Value of Equity (AR 2011): ~Php40.6B

Outstanding Shares: ~8.54B

BV/share: Php 4.77

Debt Ratio: 22%
Beta: 1.08

Net Income:
2011:  Php3.5B
2010: Php 3.0B
2009: Php 2.3B

Assuming conservative growth, fair value for the company based on earnings (DCF analysis) would be around:

Fair Value/share: Php5.32


As of 4/13/12, VLL closed at 4.3 which is still below book value.  Considering our estimated fair value of 5.32, we still have a potential upside of  +24%

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Technicals:

 Last thursday (April 12), price broke out from its consolidating range (Darvas Box), and is supported with good volume.  MACD indicator also shows signal for another uptrend, forming a higher low.  Creating a bullish flag pattern, next target would be around 4.7 which is close to book value.  However, RSI indicator signals that prices are on overbought conditions (due to its parabolic rise); but given the other bullish indicators, prices would have to consolidate a bit for a while before its next big push upwards.  At current price of 4.3, it is still halfway through initial BV target, so it's a possible Buy on Dips.

PD:  I wasn't able to buy due to my low bids.  Prices last Friday went straight up.  Will wait for further retracements, if ever given the chance.

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This post does not give a comprehensive analysis on the company/industry.  This is only a summary or a company snapshot as of the date it was posted.  Spotlight stocks featured in this blog are being chosen arbitrarily, and are only intended for the blog owner's personal consumption; not as a form of solicitation to buy or to sell.  Comments from readers who would like to point out errors, to share ideas, etc are most welcome.