America - 03/25/11

America (53.6% of asset mix) (with net present value in 1 year) 1. Manulife Financial (MFC) CA$31.4 STRONG BUY 2. Google Inc. (GOOG) US$754.6 BUY 3. Wells Fargo Financial (WFC) US$43.8 STRONG BUY 4. General Electric (GE) US$23.5 HOLD 5. TD Bank (TD) CA$92.3 HOLD 6. American Express (AXP) US$48.6 HOLD (pending to update) 7. Suncor Energy (SU) CA$50.0 BUY · Mar 11 major transactions: switch Imperial Oil (IMO) CA$52.0 to Suncor Energy (SU) CA$41.3; add Canadian Pacific C$61.20; add Manulife (MFC) between C$15.8-C$16.2 · Manulife Financial: no revised adjustment on $1.2B reserve change due to Japan earthquake. Claims cost increase as # of death rise will offset by equity market recovered. The actual reserve # may be lesser. · Research in Motion release its 4q10 earnings, above expectation but lower its 1q11 sales, trigger the shares down 11% on Friday. Its blackberry continue to grow in # of sales, however, to lots of individual customers, Apple & Google are a much better choice. Its Playbook launch too late, again, no one think it will win the battle. On the other hand, the share price is just $55, with P/E ratio lower than 9. Is this a opportunity or not? To Bilibala who has already hold Google, I won’t consider it. # Bilibala personally uses fair value @ 2016 to do all investment, however, I think for most small investors, net present value @ 2011 (fair value multiply by discount factor), would be more relevant. · STRONG BUY with NPV over MV above 30% · BUY btw 15% to 30% · HOLD btw (15%) to 15% · RE-RE-RECONSIDER below (15%)