Getting To Know Del Monte Pacific Ltd.

Posted by Fitz Villafuerte under In Focus, News and Events on August 3, 2013

Last June 10, Del Monte Pacific Ltd. officially becomes part of the Philippine stock market as they listed 1.298 billion shares in the PSE by way of introduction.

Interestingly, the company has been listed in the Singapore Stock Exchange since 1999.

This “coming home” of DMPL is indeed a good sign that the country’s economic prospects is still optimistic in the coming years (something which I also believe).

Below is a video of the ceremonial ringing of the bell which happened that day. Watch and enjoy the 30-second clip.

So the question now, which some of you might be thinking… is DMPL a good company to buy as a long-term stock investment?

My personal opinion is YES, because Del Monte is a fundamentally sound company.

It has credible management, a strong balance sheet, and has continuously enjoyed market leadership in the Philippines for canned pineapple juice, tomato sauce, spaghetti sauce and tomato ketchup in the Philippines.

How was able to know these?

Well, I was fortunate to be among the bloggers that they invited sometime last month to visit their plant in Bukidnon.

The trip was short, but very informative. I learned a lot not only about the company, but also bits of trivia about pineapples – and not to mention a taste of the famous steak in Camp Phillips!

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According to a presentation that we watched, DMPL has experienced more than 100% increase in sales from 2005-2007, and it is continuously growing each year.

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Supporting that claim is the fact that Del Monte produces 1.5 million pineapples a day, which is then packed and shipped to local and international markets within 24 hours. That’s a lot!

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In any case, I admit that I’m not an expert in fundamental analysis but personally, I believe that Del Monte fits the G.E.M.S.S. criteria for long-term investing.

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So I guess that’s it, just sharing a bit of my experience from my trip to Bukidnon and Del Monte Philippines.

I’d like to send out a big thank you to the management and officers of Del Monte Pacific Ltd. for the wonderful opportunity. The trip actually convinced me to buy your shares!

To end this post, and now speaking as part-owner of Del Monte, I’d like to encourage everyone to continue supporting and buying their products. 😛

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8 Responses to “Getting To Know Del Monte Pacific Ltd.”


  1. frugalexpat says:

    So, you went to Camo Philips? 🙂

    Thanks for sharing. Though I grew up in Dole Philippines, I still love Del Monte products..

    Cheers

  2. Alex bautista says:

    sir thank you for this article it increase our financial literacy. Im an OFW an planning to invest my savings in Del Monte
    what is the first thing to do? I will wait for your response. God bless and more power. Thank you..

  3. jun says:

    Hi sir..regarding investing on this stock for the long term, what do you think is its fair value per share? How about the buy below price? Citisec has no data on these yet..thank you much!

  4. Fitz says:

    @frugalexpat
    I’m fortunate enough to now see both DOLE and Del Monte’s farm. Can’t decide between the two which pineapple is more delicious. 😀

    @Alex
    You first need to open an account with a stock broker. As an OFW, you would only be able to do that when you are in the Philippines as personal appearance is required.

    If you’re married, your wife can do this and open an account under her name. After that, you just tell your account manager that you want to buy shares of Del Monte, and that’s it.

    I recommend that you also buy 1-2 other companies in other industries (not food) for a total of around 2-3 stocks to give you a diversified portfolio.

    Other option is to invest in UITF’s or Mutual Funds.

    I hope I was able to help.

    @Jun
    The fair value per share is P38 according to my stock analyst friend.

  5. alex says:

    thank you sir for the info.. When I start to join in stocks can I have a mentor like you to guide mo in choosing stocks? thank you

  6. rod says:

    I got dmpl last sept.after the IPO it go down up to now can I know your comment thank you and good day

  7. Fitz says:

    Hi rod. DMPL has not had any significant positive news lately that’s why the price has been going down as traders are selling their shares to buy more active companies.

    My personal recommendation is to just hold on to the shares. If you want to buy more shares, then wait for its trend to reverse up first. The price support is around Php 10 based on DELM (Singapore), if it goes below that price, then you can choose to cut your losses and sell (if you really need the money).

    Otherwise, just hold and “forget” about it. As long as DMPL is making money as a company, then you’re okay. And usually, one good news is enough to drive the price up, and that requires patience on your part.

  8. Post APRM says:

    strong balance sheeet? really? it incurred loads of debt to finance its acquisition.. it won’t have an excess return over capital for shareholders until it can finance some of the liability expense maybe thru equity placement.

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