I.

INVESTMENT OBJECTIVES

To accumulate funds amounting to one million pesos (Php1, 000,000.00)

after 3 months this will be used as seed capital for putting-up a new business.

II. INVESTMENT PLAN

To be able to accumulate the funds amounting to one million pesos

(Php1,000,000.00) within 3 months a portfolio consisting of the following stocks
will be established:

NO.OF MARKET
SECTOR PROPORTION COMPANY AMOUNT
SHARES PRICE
SM PRIME
REAL ESTATE 50% HOLDINGS 14140 35.35 499,849.00
INC.
UNIVERSAL
INDUSTRIAL 35% 2710 129.00 349,590.00
ROBINACORP.
GLOBE
SERVICE 15% TELECOM. 75 2,000.00 150,000.00
INC.
TOTAL 999,439.00

III. INVESTMENT ANALYSIS

Philippines economy grew at a mediocre pace of 3.5% over the past ~40
years (1980-2017), recent numbers project a different story. The average gross
domestic product (GDP) growth rate over the past 15 years (2000 onwards) has
been 5.1%, while in the past five years (2012-17) it has been 6.3%.

Philippines’ Gross Domestic Product (GDP), per se, has been growing
vigorously. It expanded by 6.9% in 2016, 6.7% in 2017, and 6.8% in the first quarter
of 2018. It is worth noting that this is the first time since our post-liberation era that
the Philippines have grown beyond 6.5% for ten consecutive quarters.

On the demand side, the drivers of the economy have been government
consumption, capital formation, and consumer spending. The latter, however,
has slowed down this year due to the rising prices of commodities.

When it comes tothe supply side, the service sector expanded by 6.8% in
2017 and further to 7% in the first quarter of 2018.The said Industry grew by 7.3%

1
in 2017 against 7.9% in 2018. These numbers are relevant as it shows the extent
by which our industrial sector continues to grow faster than the service sector. It
proves that the country’s manufacturing base is expanding and that
industrialization is well on track. Meanwhile, growth in agriculture remains dismal
at 2.4% in 2017 and 1.5% in the first quarter of 2018.

Overall, GDP growth in 2017 was higher than the 5.8% recorded in 2015. The
average economic growth during the Aquino administration was 6.3%.

As a result of rapid economic expansion, per capita income has increased

correspondingly. On a price adjusted viewpoint, it stood at $6,875 in 2015 and
improved to $8,229 in 2017. In other words, the average income of the Filipino
has increased by 20% over two years.

Unemployment and underemployment rates have also improved wherein

from 5.7% and 16.1% in 2015, respectively, it increases to 6.3% and 18.5%, in 2017.

Lastly, the improvement in the country’s unemployment position was a result

of a corresponding rise in foreign direct investments and the jobs created. From
$6.64 billion in 2015, FDIs peaked to an all-time high of $10.05 billion in 2017.

INDUSTRY ANALYSIS- REAL ESTATE SECTOR

The country’s economic boom shows no signs of slowing down.

Considered as one of the fastest-growing economies in the region, it exhibited
an increase in gross domestic product (GDP) by 6.7% in 2017. This robust
macroeconomic condition continues to pave the way for different sectors to
further flourish, including that of the real estate.

The real estate industry’s steady growth in the past decades is attributed
to the increase in demand for residential and commercial properties driven by
various factors. These demand drivers, according to a report by Leechiu
Property Consultants, include rising urban population growth; housing needs of
BPO (business process outsourcing) employees, since a growing number of these
workers need to live near their workplace; and remittances from overseas
Filipino workers (OFWs), more than half of which are real estate-related.

2
INDUSTRY ANALYSIS- INDUSTRIAL SECTOR

The Philippine economy grew by 6.7 percent in 2017. This is within the
official target growth range of 6.5-7.5 percent, but slower than the 6.9 percent
growth recorded in 2016. Philippine economic growth is poised to be the fastest
amongst the ASEAN-5 countries, although it lagged behind that of China and
Vietnam. Production was largely driven by the output growth of the industry
sector.

The Industry sector has expanded by 7.2 percent in 2017. In particular, the
manufacturing subsector posted a robust 8.6 percent growth. The construction
subsector also recorded positive growth with public construction expanding by
13.5 percent. The closure of several mining firms during the year has led to a
decline in this subsector’s output, which in turn, stifled overall production growth.
The service sector continued to be the main growth driver, accounting for
almost 60 percent of total domestic production.

However, it grew at a slower rate of 6.7 percent during 2017 from 7.4
percent in 2016. The slow growth of transportation, storage, and communication
services as well as recreational and sports served as a drag to the service
sector’s output. In contrast, the agriculture sector expanded by 3.9 percent,
buoyed by favorable weather conditions. This is a turnaround from the sector’s
1.3 percent contraction in 2016. This is also higher than the sector’s medium-term
growth target of 2.5-3.5 percent. The sector currently employs around 25
percent of total employment but accounts for only 10 percent of the GDP. On
the expenditure side, growth was propelled by the double-digit expansion of
exports and imports. Household spending, which accounts for almost 70 percent
of GDP, decelerated to 5.8 percent from 7.0 percent in 2016. Again, this may be
due to base effects, as household expenditure growth in 2016 was boosted by
election-related spending.

3
Figure I.As presented on the data above, the industry sector of the other
sectors, the industry in the country remains consistent as it expands as time
passed by.

4
INDUSTRY ANALYSIS- SERVICE SECTOR

The services sector continues to be the biggest employer in the country

according to the preliminary data of the April 2017 Labor Force Survey (LFS) of
the Philippine Statistics Authority (PSA).

Data from the agency showed that of the more than 40 million employed
here in the country, as of April 2017, 55.4 percent are in the services sector; this is
a drop from the 56.2 percent in the same period last year. The services sector is
followed by agriculture (26.1 percent) and industry (18.5 percent).

Of those working in the services sector, 35.3 percent are working in

wholesale and retail trade and repair of motor vehicles and motorcycles. This
was followed by transportation and storage (13.9 percent) and other services
(11.7 percent). According to PSA, other services “include activities of households
as employers and undifferentiated goods and services-producing activities of
households for own use."

The remaining percentage in the services sector are working at public

administration and defense, compulsory social security (10.1 percent);
accommodation and food service activities (7.6 percent); administrative and
support service activities (6.7 percent); education (5.1 percent); financial and
insurance activities (2.3 percent); human health and social work activities (2.2
percent); information and communication (1.9 percent); arts, entertainment,
and recreation (1.5 percent); professional, scientific, and technical activities (1.1
percent); and real estate activities (0.8 percent).

5
COMPANY ANALYSIS

SM Prime Holdings, Inc. (SMPH) was incorporated on January 6, 1994 to

acquire and develop real estate, conduct and maintain commercial shopping
centers including shopping center spaces for rent, amusement centers, movie or
cinema theaters, and to construct and manage buildings such as
condominium, apartments, hotels, restaurants, stores and other structures for
mixed use purposes. The Company has now four business units, namely, malls,
residential, commercial, and hotels and convention centers.

As of December 31, 2017, SMPH has 67 malls in the Philippines and seven
shopping malls in China. The malls in China are located in the cities of Xiamen,
Jinjiang, Chengdu, Zibo, Chongqing, Tianjin, and Suzhou. The Company has 38
residential projects, nine commercial projects, six hotels, four convention centers
and three trade halls. SMPH also owns Sky Ranch, an amusement park in
Tagaytay City and within SM City Pampanga.

Among the Company's subsidiaries are SM Development Corporation;

Costa del Hamilo, Inc.; Highlands Prime Inc.; Tagaytay Resort Development
Corporation; SM Arena Complex Corporation; SM Hotels and Conventions
Corp.; and SM Land (China) Limited.

Figure II. The graph above shows the stock market movement
in the long stretch of December - the month where investing begins.

6
 Universal Robina Corporation (URC) was founded in 1954 when Mr. John
Gokongwei, Jr. established Universal Corn Products, Inc., a cornstarch
manufacturing plant in Pasig. The Company is involved in a range of food-
related businesses, including the manufacture and distribution of branded
consumer foods; production of hogs and poultry; manufacture of animal feeds
and veterinary products; flour milling; and sugar milling and refining. URC also
ventured in the renewables business for sustainability through distillery and
cogeneration divisions.

URC operates its food business through operating divisions and wholly-
owned or majority-owned subsidiaries that are organized into three core
business segments, namely, branded consumer foods (BCF), agro-industrial
products and commodity food products.

Majority of URC's branded consumer foods business is conducted in the

Philippines, but the Company has expanded into other Asian markets through its
subsidiaries in Cayman Islands, British Virgin Islands, China, Hong Kong,
Indonesia, Malaysia, Singapore, Thailand, Myanmar, Vietnam, New Zealand,
and Australia.

Figure III. The graph above also shows the stock market
movement in from the beginning month of the year 2018 to
December 3.

7
Globe Telecom, Inc. (GLO) was originally incorporated on January 16, 1935 as
Globe Wireless Limited with a franchise to operate wireless long distance
message services in the Philippines. The Company eventually changed its name
to the present one in 1992, and welcomed Singapore Telecom, Inc. as a new
foreign partner the following year.

GLO is a telecommunications company that provides digital wireless

communication services nationwide under the "Globe Postpaid", "Globe
Prepaid", and "TM" brands using a fully digital network. The Company also offers
domestic and international long distance communication services or carrier
services.

On May 30, 2016, the Board of GLO approved the acquisition of 50% of Vega
Telecom, Inc. (VTI) from San Miguel Corporation, with Philippine Long Distance
Telephone Company acquiring the remaining 50% interest. VTI owns an equity
stake in Liberty Telecom Holdings, Inc. (LIB) as well as in enfranchised companies
including Bell Telecommunication Philippines, Inc.; Eastern Telecom Philippines,
Inc.; Express Telecom, Inc.; and Tori Spectrum Telecom, Inc., among others.

On June 21, 2016, GLO exercised its rights as holder of 50% equity interest of VTI
to cause VTI to propose the conduct of a tender offer on the common shares of
LIB held by minority shareholders as well as the voluntary delisting of LIB. At the
completion of the tender offer and delisting of LIB, VTI's ownership of LIB is at
99.1%.

Figure IV. The graph above demonstrates the stock market

movement in December 3, 2018 where investing begins.

TECHNICAL ANALYSIS

8
 SM Prime Holdings, Inc. (SMPH)

Figure V.Based on the graph of the stock price above of the SM Prime Holdings, Inc.
(SMPH), it started to increase at the beginning of January 2018 but suddenly decrease at
June. Considering that SMPH is already a matured corporation, its stocks still continue to
increase for the next months because of its stability and resilience as top company in the
Philippines.

Total Shares Outstanding (Millions)PHP 28,879,231,694

Market Cap (Millions) PHP 1,111,850,420,219.00
Working Capital (Millions) PHP 47, 368,308
Enterprise value (Millions) PHP 262,873,914
Revenues (Millions) PHP90,921,850
Par Value PHP 1
Year End Earnings per share PHP 0.96

Universal Robina Corporation (URC)

9
 Figure VI.As shown on the stock price of Universal Robina Corporation (URC, it began
to decline toward the start of 2018 and it kept on decreasing up as far as possible of June
2018. Nonetheless, the stock cost recuperated toward the start of July 2018.

Total Shares Outstanding (Millions) PHP2,204,161,868

Market Cap (Millions)PHP328,420,118,332.00
Working Capital (Millions) PHP 25,703,042,483
Enterprise value (Millions) PHP 81,686,012,597
Revenues (Millions) PHP125,007,824,013
Par Value PHP 1
Year End Earnings per sharePHP4.94

Globe Telecom, Inc. (GLO)

10
 Figure VII.Based on the graph the stock price of Globe Telecom Inc. it started to
decline at the beginning of 2018 and it continued to decline up to the end of May 2018.
However, the stock price recovered at the beginning of July 2018.

Total Shares Outstanding (Millions) PHP 133,053,248

Market Cap (Millions) PHP 251,470,638,720.00
Working Capital (Millions) PHP 21,941,894
Enterprise value (Millions) PHP 66.557,737
Revenues (Millions) PHP135,280,731
Par Value PHP 50
Year End Earnings per share PHP 109.22

FINANCIAL RATIOS

11
SM Prime Holdings, Inc. (SMPH)

LIQUIDITY RATIO

Year 2016
Current Ratio= CA/CL
= 103,950,556/49,421,276
= 2.10:1

Year 2017
Current Ratio= CA/CL
= 125,576,040/78,207,732
= 1.61:1

The current ratio measures the short-term solvency of the firm. It

establishes the relationship between current assets and current liabilities. It is
calculated by dividing current assets by current liabilities.
The data shows that the business of SM Prime Holdings Inc. has
P1.61:1current assets to pay for a peso of current liabilities in 2017 against
P2.10:1current assets to pay for a peso of current liabilities in 2016. The two
consecutive years of SMPH current ratio are highly liquidable in terms of their
current ratio because the rule of thumb here must be P.1.1. The data in 2016
shows that it has a higher ratio than in the year 2017. This also means that SMPH
has the ability to pay its short-term obligation which is the liability.

SM Prime Holdings, Inc. (SMPH)

12
 SOLVENCY RATIO

Year 2016
Debt to Equity= TD/EQUITY
= 230,196,588/235,363,544
= 0.97

Year 2017
Debt to Equity= TD/EQUITY
= 275,543,684/262,873,914
= 1.05

Debt to Equity Ratio, calculated by dividing a company’s total liabilities

by its stockholders' equity, is a debt ratio used to measure a company's financial
leverage. The D/E ratio indicates how much debt a company is using to finance
its assets relative to the value of shareholders’ equity.

The data presents that there is a 97% of company’s debt for every 1
peso of its stock in 2016 while it has 1.05to year 2017. This generally means that
SMPHI is taking less debtrelative to the company’s equity value in 2016 than in
2017.

SM Prime Holdings, Inc. (SMPH)

13
 PROFITABILITY RATIO

Year 2016
GPM= GP/NS
= 35,265,056/79,816,231
= 44%

Year 2017
GPM= GP/NS
= 40,628,792/90,921,850
= 45%

Gross profit margin is a financial metric used to assess a company's

financial health and business model by revealing the proportion of money left
over from revenues after accounting for the cost of goods sold. One can
calculate gross profit margin, also known as gross margin, by dividing gross profit
by revenues. The above data shows that in 2016, SMPH got a GPM of 44% which
increases to 45% in year 2017. This means that the company has a low
profitability ratio.

SM Prime Holdings, Inc. (SMPH)

14
 OPERATING INCOME MARGIN

Year 2016
OIM= OI/NS
= 30,988,677/79,816,231
= 39%

Year 2017
OIM= OI/NS
= 35,947,861/90,921,850
= 40%

Operating income is an accounting figure that measures the amount of profit

realized from a business's operations, after deducting operating expenses such
as wages, depreciation and cost of goods sold (COGS). Operating income
takes a company's gross income, which is equivalent to total revenue minus
COGS, and subtracts all operating expenses. A business's operating expenses
are costs incurred from normal operating activities and include items such as
office supplies and utilities. The data in 2016 shows that SMPH has earned
revenue by 39% and certainly increased in 2017 to 40%. This means that the
company has a good profitability ratio during the last 2 years.

SM Prime Holdings, Inc. (SMPH)

15
 NET PROFIT MARGIN

Year 2016
NPM= NI/NS
= 24,367,624/79,816,231
= 31%

Year 2017
NPM= NI/NS
= 28,124,463/90,921,850
= 31%

Net profit margin is an indicator of how efficient a company is and how

well it controls its costs. The higher the margin is, the more effective the
company is in converting revenue into actual profit. Net profit margin (also
called profit margin) is the most basic profitability ratio that measures the
percentage of net income of an entity to its net sales. It represents the
proportion of sales that is left over after all relevant expenses have been
adjusted. As you can see, a good percentage of net income earned from the
business in 2015, 31% same as to year 2017. This means that SMPH earned
revenue is quite profitable.

SM Prime Holdings, Inc. (SMPH)

16
 RETURN ON ASSETS

Year 2016
ROA= NI/TA
= 28,124,463/465,560,132
= 0.06

Year 2017
ROA= NI/TA
= 28,124,463/538,417,598
= 0.05

The data above in Return on Assets shows that in 2016, SM Prime Holdings,
Inc. (SMPH) got P0.6:1 ratio compared to its P0.5:1 of 2017. This means that the
SMPH has a lowpercentage of profit earned in relation to its overall resources.

Globe Telecom, Inc. (GLO)

17
 LIQUIDITY RATIO

Year 2016
Current Ratio= CA/CL
= 53,022,654/82,401,897
= 0.64:1

Year 2017
Current Ratio= CA/CL
= 57,515,137/79,457,031
= 0.72:1

The current ratio measures the short-term solvency of the firm. It

establishes the relationship between current assets and current liabilities. It is
calculated by dividing current assets by current liabilities.
The data shows that the business of Globe Telecom Inc. has P0.72:1
current asset to pay for a peso of current liabilities in 2017 against P0.64:1 current
asset to pay for a peso of current liabilities in 2016. The two consecutive years of
GTI current ratio are not liquidable in terms of their current ratio because the rule
of thumb here must be P.1.1. This also means that GTI does not have the ability
to pay its short-term obligation which is the liability.

Globe Telecom, Inc. (GLO)

18
 QUICK ASSET RATIO

Year 2016
Current Ratio= CA-INV/CL
= 53,022,654-4,579,954/82,401,897
= 0.59:1

Year 2017
Current Ratio= CA-INV/CL
= 57,515,137-3,242,689/79,457,031
= 0.59:1

The quick ratio is an indicator of a company’s short-term liquidity, and

measures a company’s ability to meet its short-term obligations with its most
liquid assets. It is calculated by dividing the difference of current asset and
inventories by current liabilities. In 2016, JFC has P0.59:1of liquid assets available
for each peso of current liabilities same with year 2017. This could be interpreted
that GTIwould not be able to pay off their current debts using its quick assets
since both years of the company have a quick ratio below 1.

Globe Telecom, Inc. (GLO)

19
 SOLVENCY RATIO

Year 2016
Debt to Equity= TD/EQUITY
= 186,386,808/63,476,302
= 0.59

Year 2017
Debt to Equity= TD/EQUITY
= 211,208,551/66,557,737
= 0.68

Debt to Equity Ratio, calculated by dividing a company’s total liabilities

by its stockholders' equity, is a debt ratio used to measure a company's financial
leverage. The D/E ratio indicates how much debt a company is using to finance
its assets relative to the value of shareholders’ equity.

The data presents that there is a 59% of company’s debt for every 1
peso of its stock in 2016 while it has 68% to year 2017. This generally means that
GTI is taking more debt relative to the company’s equity value.

Globe Telecom, Inc. (GLO)

20
 PROFITABILITY RATIO

Year 2016
GPM= GP/NS
= 126,400,851/120,588,003
= 1.04

Year 2017
GPM= GP/NS
= 133,643,354/135,280,731
= 0.99

Gross profit margin is a financial metric used to assess a company's

financial health and business model by revealing the proportion of money left
over from revenues after accounting for the cost of goods sold. One can
calculate gross profit margin, also known as gross margin, by dividing gross profit
by revenues. The above data shows that in 2016, GTI got a GPM of 1.04in
2016and 99% in year 2017. This means that the company has a high profitability
ratio.

Globe Telecom, Inc. (GLO)

21
 OPERATING INCOME MARGIN

Year 2016
OIM= OI/NS
= 21,937,402/120,588,003
= 0.18

Year 2017
OIM= OI/NS
= 21,541,702/135,280,731
=0.11

Operating income is an accounting figure that measures the amount of profit

realized from a business's operations, after deducting operating expenses such
as wages, depreciation and cost of goods sold (COGS). Operating income
takes a company's gross income, which is equivalent to total revenue minus
COGS, and subtracts all operating expenses. A business's operating expenses
are costs incurred from normal operating activities and include items such as
office supplies and utilities. The data in 2016 shows that GTI has earned revenue
by 18% and certainly decreased in 2017 to 11%. This means that the company
has a low profitability ratio during the last 2 years.

Globe Telecom, Inc. (GLO)

22
 NET PROFIT MARGIN

Year 2016
NPM= NI/NS
= 15,888,499/120,588,003
=0.13

Year 2017
NPM= NI/NS
= 15,084,213/135,280,331
= 0.05

Net profit margin is an indicator of how efficient a company is and how

well it controls its costs. The higher the margin is, the more effective the
company is in converting revenue into actual profit. Net profit margin (also
called profit margin) is the most basic profitability ratio that measures the
percentage of net income of an entity to its net sales. It represents the
proportion of sales that is left over after all relevant expenses have been
adjusted. As you can see, lower percentage of net income earned from the
business in 2016, 13% compared to 5% of 2017. This means that GTI earned
revenue is not quite profitable.

Globe Telecom, Inc. (GLO)

23
 RETURN ON ASSETS

Year 2016
ROA= NI/TA
= 15,888,499/249,863,110
= 0.06

Year 2017
ROA= NI/TA
= 15,084,213/277,766,288
= 0.05

Return on assets (ROA) is an indicator of how profitable a company is

relative to its total assets. ROA gives a manager, investor, or analyst an idea as
to how efficient a company's management is at using its assets to generate
earnings. Return on assets is displayed as a percentage and it’s calculated as:
ROA = Net Income / Total Assets.

The data above shows that in 2016, GTI got P0.6:1 ratio compared to
P0.5:1 of 2017. This means that the Globe Telecom Inc. has a low profitability
ratio.

Universal Robina Corporation (URC)

24
 LIQUIDITY RATIO

Year 2016
Current Ratio= CA/CL
= 52,232,044,721/28,105,175,416
= 1.86

Year 2017
Current Ratio= CA/CL
= 53,702,604,881/27,999,562,398
= 1.92

The current ratio measures the short-term solvency of the firm. It

establishes the relationship between current assets and current liabilities. It is
calculated by dividing current assets by current liabilities.

The data shows that the business of URC has P1.86:1 current asset to pay
for a peso of current liabilities in 2016 and P1.92:1 current asset to pay for a peso
of current liabilities in 2017. The two consecutive years of URC current ratio are
highly liquidable in terms of their current ratio because the rule of thumb here
must be P.1.1. This means that Universal Robina Corporation has the ability to
pay its short-term obligation which is the liability.

Universal Robina Corporation (URC)

25
 QUICK ASSET RATIO

Year 2016
Current Ratio= CA-INV/CL
= 52,232,044,721-18,600,730,912/28,105,175,416
= 1.20

Year 2017
Current Ratio= CA-INV/CL
= 53,702,604,881-18,465,363,440/27,999,562,398
= 1.26

The quick ratio is an indicator of a company’s short-term liquidity, and

measures a company’s ability to meet its short-term obligations with its most
liquid assets. It is calculated by dividing the difference of current asset and
inventories by current liabilities. In 2016, URC has P1.20:1 of liquid assets available
for each peso of current liabilities and P1.26:1 in 2017. This could be interpreted
that Globe Telecom may be able to pay off their current debts using only quick
assets since both years of the company have a quick ratio above 1.

Universal Robina Corporation (URC)

26
 SOLVENCY RATIO

Year 2016
Debt to Equity= TD/EQUITY
= 63,816,152,167/78,849,254,753
= 0.81

Year 2017
Debt to Equity= TD/EQUITY
= 65,954,786,902/81,686,012,597
= 0.81

The data presents that there is an 81% of company’s debt for every 1 peso
of its stock in both years. This generally means that GTI is taking more debt
relative to the company’s equity value.

Universal Robina Corporation (URC)

27
 PROFITABILITY RATIO

Year 2016
GPM= GP/NS
= 36,540,833,777/111,631,792,704
= 0.33

Year 2017
GPM= GP/NS
= 39,314,468,779/125,007,824,013
= 0.31

The above data shows that in 2016, Globe got a GPM of 33% which
somehow decreases 31% in year 2017. This means that the company has a low
profitability ratio.

Universal Robina Corporation (URC)

28
 OPERATING INCOME MARGIN

Year 2016
OIM= OI/NS
= 16,810,613,062/111,631,792,704
= 0.15

Year 2017
OIM= OI/NS
= 14,952,166,760/125,007,824,013
= 0.12

Operating income is an accounting figure that measures the amount of

profit realized from a business's operations, after deducting operating
expenses such as wages, depreciation and cost of goods sold (COGS).
Operating income takes a company's gross income, which is equivalent to total
revenue minus COGS, and subtracts all operating expenses. A business's
operating expenses are costs incurred from normal operating activities and
include items such as office supplies and utilities. The data in 2016 shows that
Globe earned revenue by 15% and certainly decreased in 12% for the next year.
This means that the company has a low profitability ratio during the last 2 years.

Universal Robina Corporation (URC)

NET PROFIT MARGIN

29
 Year 2016
NPM= NI/NS
= 15,355,971,980/111,631,792,704
= 0.14

Year 2017
NPM= NI/NS
= 11,152,921,333/125,007,824,013
= 0.09

As you can see, low percentage of net income earned from the business
in 2016, 14% some as to year 2017 with only 9%. This means that Globe Telecom’s
earned revenue is not quite profitable.

Universal Robina Corporation (URC)

30
 RETURN ON ASSETS

Year 2016
ROA= NI/TA
= 15,355,971,980/142,665,406,920
= 0.11

Year 2017
ROA= NI/TA
= 11,152,921,333/147,640,799,499
= 0.08

Return on assets (ROA) is an indicator of how profitable a company is

relative to its total assets. ROA gives a manager, investor, or analyst an idea as
to how efficient a company's management is at using its assets to generate
earnings. Return on assets is displayed as a percentage and it’s calculated as:
ROA = Net Income / Total Assets.

The data above shows that in 2016, GTI got P0.11:1 ratio and P0.08:1 in 2017. This
means that the company of Globe Telecom Inc. has a low profitability ratio.

31
 IV. DECISION/CONSTRUCTION OF PORTFOLIO

NO.OF MARKET
SECTOR PROPORTION COMPANY AMOUNT
SHARES PRICE
SM PRIME
REAL ESTATE 50% HOLDINGS 14140 35.35 499,849.00
INC.
UNIVERSAL
INDUSTRIAL 35% 2710 129.00 349,590.00
ROBINACORP.
GLOBE
SERVICE 15% TELECOM. 75 2,000.00 150,000.00
INC.
TOTAL 999,439.00

(After 3 months holding period is from December 3 to February 28, 2019)

NO.OF Current Value after 3 Invested Capital

SECTOR COMPANY ROI
SHARES Price Share months Value Gain
REAL ESTATE SMPH 14140 39.00 551,460.00 499,849.00 51,611.00 10%
INDUSTRIAL URC 2710 146.50 397,015.00 349,590.00 47,425.00 14%
SERVICE GLO 75 1,896.00 142,200.00 150,000.00 (7,800.00) 5%
TOTAL 1,090,675.00 999,439.00 91,236.00 9%

V. CONCLUSION

Investing into stocks can be very costly in the event that you exchange
much of the time, particularly with a little measure of cash accessible to
contribute. In consonance to this, choosing a right company to invest in stocks
must have the right decision to make.

Consecutively, in the wake of assessing the aftereffects of the

individual offers and the portfolio overall, the return on investment of the
company of Universal Robina Corporation (URC) shows exorbitant proportion
amongst all. Relational to the early mentioned result, I presumed that re-
investing resources to the said company will be a significantly choice to
increase the value of the stock. On the other hand, the two company’s stock
must be sold so that the company will be able to raise additional fund for them.

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