PLDT Inc. (PHI)

Our PAST TOP PICK with PHI has triggered its stop at $21.  To remain disciplined, we recommend covering the position at this time.  When combined with previous guidance, this will result in a net investment loss of 5%. 

Our PAST TOP PICK with PHI is progressing well.  To remain disciplined, we recommend trailing up the stop (from $19) to $21 at this time.  

We reiterate PHI, the Philippine's largest telecommunications company as a TOP PICK.  Although debt is growing, free cash flow exceeds 280 million (including payout of a robust dividend).  It trades at 8x earnings, 2.2x book, and supports a 28% ROE.  We recommend trailing up the stop (from $18) to $19, looking to achieve $26 -- upside potential of 18%.  Yield 5.5%

PHI is the largest telecommunications company in the Philippines.  It has completed 97% of the capital intensive project converting legacy to fiber optic systems for the residential customer and has completed a US-Transpacific sub-sea fiber network.  All this while growing cash reserves, retiring debt, and supporting a robust dividend under 50% of cash flow.  We recommend setting a stop-loss at $18, looking to achieve $30 -- upside potential of 30%.  Yield 5.6%