Looking at the microeconomic side, which usually affects the group’s current portfolio,

after selling their PSE:MONDE stocks, they decided to buy 2 additional stocks, namely
PSE:URC and PSE:FB. PSE:FB is a prominent player in the Food Products Industry and its
current cash flows can sufficiently cover interest payments. Currently, its new target price is 66%
above the last closing price of P44.90, and the stock is down by about 43% over the past year.
The company is forecasted to post earnings per share of P3.61 next year, compared to P3.35 last
year. PSE:URC’s WACC Model is 9.50%. The company is viewed as having a higher
shareholder yield, and cash flows can sufficiently cover interest payments. They are trading at
16.4% below the estimate of their fair value. Earnings are forecasted to grow by 13.43% per
year. The group decided to hold PSE:JFC and PSE:BPI which are both doing extra well and are
stable in the economy despite the external factors within it. PSE:JFC displays strong earnings
that should allow management to continue dividend payments. The company displays a 10.75%
WACC as well. They are trading at 3.2% below the estimated fair value. Earnings are forecasted
to grow by 14.86% per year, and earnings grew by 500.8% over the past year. PSE:BPI has a
cost of capital of 10%. It has a higher shareholder yield as well. It is forecast to grow its earnings
by 14.55% per year, and eventually, earnings have grown by 3.3% per year over the past 5 years.
They also pay a reliable dividend of 2.27%.