PORFOLIO INVESTMENT ANALYSIS I COMPANY PROFILE

A. NATURE OF BUSINESS DOMESTIC: SM PRIME HOLDING INC. (SMPH) SM Prime Holdings, Inc. (SMPH) was incorporated on January 6, 1994 to develop, conduct, operate and maintain the business of modern commercial shopping centers and all related businesses. The Company's main sources of revenues include rental income from leases in mall and food court, cinema ticket sales and amusement income from bowling and ice skating. As of December 31, 2009, SMPH operated 36 SM Supermalls in the country, eight of which were operated by the Company's subsidiaries, and three SM Supermalls in China. SMPH's subsidiaries are First Asia Realty Development Corporation, Premier Central, Inc., Consolidated Prime Dev. Corp., Premiere Southern Corporation, San Lazaro Holdings Corporation, First Leisure Ventures Group, Inc., Consolidated Prime Dev. Corp., Mega Make Enterprises Limited, Affluent Capital Enterprises Limited, SM Land (China) Limited, and Springfield Global Enterprises Limited.

FOREIGN: WATSONS PHARMACEUTICALS INC (WPI) Watson Pharmaceuticals, Inc., headquartered in Corona, California, is a leading global specialty pharmaceutical company. The Company is engaged in the development, manufacturing, marketing and distribution of generic pharmaceuticals and specialized branded pharmaceutical products focused on Urology and Women's Health. Watson has commercial operations in many of the world's established and growing international markets. Watson Pharmaceuticals, Inc. (NYSE: WPI), is a leading specialty pharmaceutical company engaged in the development, manufacturing, marketing, sale and distribution of generic and brand pharmaceutical products. Watson operates in three businesses: Global Generics, Global Brands and Distribution. As of December 31, 2009, Watson s Global Generics business marketed more than 350 generic pharmaceutical products and 30 brand pharmaceutical products through its Global Brands business. Watson s Distribution business distributes products for over 200 suppliers and is focused on providing next-day delivery and responsive service to its customers. The Distribution business also distributes a number of Watson generic and brand products. With more than 180 generic products in the U.S., Watson s Global Generics business is focused on maintaining a leading position within the U.S. generics market, where it is ranked 3rd in terms of number of prescriptions dispensed annually. Outside the U.S., Watson markets generic products in key markets, including Canada, the U.K., France, Australia and various markets across Europe. Watson s Global Brands business includes approximately 30 brand products, primarily sold in the U.S. The division is focused on leadership in urology and women s health. The Global Brands business markets brand products through approximately 350 sales professionals. Watson s brand sales and marketing efforts focus on physicians who specialize in the diagnosis and treatment of particular

medical conditions and the Company offers products to satisfy the unique needs of these physicians. Watson s Anda distribution business primarily distributes generic and selected brand pharmaceutical products to independent pharmacies, alternate care providers (hospitals, nursing homes and mail order pharmacies), pharmacy chains and physicians offices. Additionally, Anda sells to members of buying groups, which are independent pharmacies that band together to enhance their buying power. While Anda purchases most of the approximate 8,000 SKUs in its Distribution operations from third party manufacturers, Watson also utilizes these operations for the sale and marketing of its own products, and collaborative partners products. DERIVATIVES: PFIZER INC. (PFE) Pfizer Inc. (Pfizer) is a research-based, global biopharmaceutical company. The Company applies science and its global resources to improve health and well-being at every stage of life. Pfizer's diversified global health care portfolio includes human and animal biologic and small molecule medicines and vaccines, as well as nutritional products and many consumer health care products. The Company operates in two business segments: Biopharmaceutical and Diversified. Biopharmaceutical includes the Primary Care, Specialty Care, Established Products, Emerging Markets and Oncology customer-focused units. Diversified includes Animal Health products that prevent and treat diseases in livestock and companion animals, and Consumer Healthcare products. On October 15, 2009, the Company completed its acquisition of Wyeth. In December 2009, Durata Therapeutics, Inc. acquired Vicuron Pharmaceuticals from Pfizer.

III. Initial Investment Company Name No. of Shares 1,000 1,000 1,000 Market Price (FC/DC) Market Value (FC) $ $ 40,650.00 42,230.00 TOTAL Php Php Exchange Rate Market Value (FC/DC)

SM PRIME HOLDING INC. WATSONS International PHAMACEUTICALS

Domestic *Derivatives

PHP $ PHP

30.50 40.65 42.23

43.25 43.25

Php Php Php Php

30,500.00 1,757,909.25 1,826,236.35 3,614,645.60

PFIZER INC.

* DERIVATIVE'S SCHEDULE Company Name

Type of Derivative Call Option

Expiration Date Jan. 25 2011

No. of Options

Number of Shares 1000 Market Value of Stock (FC) $ 14,230.00

Cost of Options

Strike price $ 18.00

PFIZER INC.

10

100.00

Market Price (FC) PHP 14.23

Exchange rate Php 43.25

Market Value of Call (DC) Php 43,245.00

IV. Schedule of the current value of the portfolio investment Company Name No. of Shares Market Price (FC/DC) (FC/DC) PHP 28.35 $ 350.00 $ 44.85 Market Value (FC) (FC) $ 350,000.00 $ 44,850.00 Exchange Rate Market Value (FC/DC) Php 28,350.00 Php 15,542,520.00 Php 1,991,662.92 Php 17,562,532.92

Domestic International *Derivatives

SM PRIME HOLDING INC. WATSONS PHAMACEUTICALS PFIZER INC.

1,000 1,000 1,000

Php 44.4072 Php 44.4072

TOTAL

* DERIVATIVE'S SCHEDULE Company Name

Type of Derivative Call Option

Expiration Date Jan. 23 2011

No. of Options

Number of Shares 1000

Cost of Options

Strike price $ 18.00 Market Value of Call (DC) Php 44,407.20

PFIZER INC.

10

100.00

Market Price (FC) $ 44.85

Market Value of Stock (FC) $ 44,850.00

Exchange rate Php 44.4072

V. Analysis Company Name No. of Shares 1,000 1,000 1,000 $ $ Dividend/share Dividend Income Exchange Rate Market Value Php Php 32,861.33 Php 6,883.12 Php 39,744.44

Domestic International Derivatives

SM PRIME HOLDING INC. WATSONS PHAMACEUTICALS PFIZER INC.

Php

0.74 0.155 $ $

740.00 155.00

Php 44.4072 Php 44.4072

TOTAL VI. Capital Gain Company Name No. of Shares Market Value 2011) PHP $ $ (Jan. Market Value (Nov. 2010) PHP 350.00 44.85 PHP 30.50 $ 40.65 42.23 Capital Gain per share Php $ $ (2.15) 309.35 2.62

Total Gain Php (2,150.00) Php 309,350.00 Php 2,620.00 Total Capital Gain Php (2,150.00) Php 13,737,367.32

Domestic International Derivatives

SM PRIME HOLDING INC. WATSONS PHAMACEUTICALS PFIZER INC.

1,000 1,000 1,000

28.35

Exchange Rate Php -

Php 44.4072

Php 44.4072

Php 116,346.86 Php 13,851,564.18

TOTAL VII. Total Returns Company Name Domestic International Derivatives Dividend Income $ $ 32,861 6,883 Capital Gain Php (2,150.00) Php 13,737,367.32 Php 116,346.86 Php Php Php Total Return (2,150.00) 13,770,228.65 123,229.980

SM PRIME HOLDING INC. WATSONS PHAMACEUTICALS PFIZER INC.

TOTAL

Php

13,891,308.63

VIII. Return on Investment Company Name Domestic International Derivatives Total Return Php (2,150) Php 13,770,229 Php 123,230 Initial Investment Php Php Php 30,500.00 1,757,909.25 1,826,236.35 Total Return (%) -7.05% 783.33% 6.75%

SM PRIME HOLDING INC. WATSONS PHAMACEUTICALS PFIZER INC.

IX. Decision / Conclusion / Recommendation Domestic SM Prime Holdings Inc.has already established their name in their field, however, I prefer not to invest in this stock because the fugures clearly state how poor its standing has went on. Looking at its over-all position, a -7.05% of return has been realized or P 2,150 Also, due to no dividends were declared and by the Peso devaluation, the statistics have gone this low from November 2010 to January , 2011. International Unlike domestic stock, Watsons Phamaceuticals has grown so much figuratively. Looking at its capital gain, it bloomed up to $ 32.861 per share. Besides, the company also declared dividends amounting to 32.861 per share.I really prefer to invest in this company . Derivative Figuratively, the stock is said to be out-of-the-money because the Market Value is uch greater than of its Strike Price.However, it was been singled out by the dividend received . Because of these facts, I choose to excersice my right.