FDC Countermeasure

FDC broke my heart, but I still believe in the fundamentals of this stock.  The problem is that it has low float, thus can be easily abandoned by impatient short term traders.  As a consolation, at least I didn't put much yet on this stock and so there is still room to add for more, if I really choose this to be one of my core holdings. (Current core: AP and EDC).

Here is the 1 year chart where I may plan to buy more shares once an STS buy would be triggered.

Reasons why I still believe in this stock:
1.) Undervalued, with current P/E at 10x.
2.) Impending IPO for one of its earning subsidiaries: EastWest Banking.
3.) FDC plans for a 2PO but would not want to sell at current low prices.  This 2PO is needed in order to increase the company's float from less than 10% to about 33%.
4.) Intact earnings, with sugar having high prices this year.  (subsidiary: Pacific Sugar Holdings).

FDC

My first time to look at FDC's charts, I have noted that a bullish pennant has been formed.  On the next trading day, it was traded with gusto gaining impressive volume signifying a valid positive momentum.

FDC (Filinvest Development Corporation) is the parent company of FLI (Filinvest Land) and EastWest Bank.  The company is also involved in the production of sugar (Pacific Sugar Holdings Corporation).  East West Bank plans to do an IPO, probably  this year, so this should be a good thing for FDC.

Looking at the Price-Earnings ratio, FDC has increased its EPS from .23 in 2009 to .52 in 2010.  My personal TP for now would be 8.56, assuming stable growth and earnings.

I am including this stock to be among my watchlist for this year, which already include AP, DGTL and EDC.

Personal Recommendation:  BUY