Stock Investing In the Philippines

Riding the elevator with JOY

2011-09-17T23:59:00.001-07:00

My title might be kinda out of this world or off topic.

I just read Francis Kong's blog post about Happiness and Joy. In this time I know most of us who invested in the stock market don't feel happy because the US crisis and the European Debt crisis is hurting us. Our portfolio has been in the red for the longest time and it seems cost averaging wont allow us to be in the point of even breaking even.

But again as the author Tony Campolo in Francis Kong's blog says many people are in the elevator and yet it seems that because in the elevator everyone is in a gloomy state waiting for their floor so that they can get off and go to their job or meeting. Why don't we enjoy the ride by singing with rest of the passengers. And when we get off why don't we continue singing and enjoy the rest of the day.

I know it has been the longest time or probably you just got in the stock market and think it was the right time and yet you still end up in the red like the rest of us. Would you put a sad face or would you rather sing?

Yup analyst predict that this bearish market will drag on, the market seems to be moving sideways till the end of the year. But a some investors, not traders, are more happy than you think. They are happy because they can buy more stocks of good and great companies at a bargain price. Investors buy only when the price of a good and great company is down; did you catch that?

I say it again: Investors buy only when "PRICE" of a good and great company is down. A lot of traders buy up when a stock's price is climbing because they hope to catch the ride and profit by the time the stock's price is higher than what they bought it for which is correct. But if that company is not good or have poor fundamentals you will end up caught when the stock's price drop down. That is why the advice is to buy stocks of blue chips which gives regular dividends so that when such company's stock have a not so favorable price we can still profit with the dividend and in time the price of such stock will go up and that is the right time to sell.

How to file claims for your money in a bankrupt bank

2011-09-14T02:18:00.000-07:00

source: http://www.davemanuel.com

With the recent news about LBC Development Bank's going into receivership and other banks in the Philippines I guess knowing how to file claims for your deposits in such banks must be a know how. I remember a comment by one fellow claimant who is already pissed off with the process as well as to the bank to which she deposited her hard earned money.

source:http://www.manilatimes.net

For young Pinoys and my fellow Pinoys who still invest in banks I hope you be cautious in were you invest your money. Though banks are the traditional ways of investing by way of savings and interest, one should always remember the rule that is "don't put your eggs in one basket." Many say diversify which is good but it should be a well manage diversified investment where a portion is invested in safe investments, a big portion is invested in investments that generate continuous returns or income, a little on risky investments for big returns, and a safety net like insurance or emergency fund readily available when the need comes.

Below are the steps on how to claim your money from a closed bank taken over taken by Philippine Deposit Insurance Corporation(PDIC) to guide us when claiming your money from a closed bank:

HOW TO FILE CLAIMS

A. HOW TO FILE CLAIMS

Claims may be filed either:

Personally

At the premises of the closed bank where the deposit account was maintained or at a designated site during the period of Claims Settlement Operations (CSO), as announced in the Notice to Depositors or as published in a newspaper of general circulation, or

At the PDIC Claims Counter located at the 4th Flr., PDIC Ayala Extension Office, SSS Building, corner V.A. Rufino St., (formerly Herrera St.), Makati City.

Through mail - to be sent to the following address:

Claims Processing Deparment

Philippine Deposit Insurance Corporation

4th Floor SSS Building

6782 Ayala Avenue cor. V.A Rufino St.

1226 Makati City, Philippines

Note: Filing of claims for insured deposits will prescribe at the end of two (2) years from actual takeover of the closed bank by PDIC.

B. STEPS IN FILING CLAIMS

Secure a Claim Form (CF) and Claim Status Sheet (CSS) from any authorized PDIC representative. The CF and CSS can also be downloaded from the PDIC website.

Important Notice: The CF and CSS are free of charge. Please report to PDIC any information for the sale of the CF and CSS.

Fill up all the entries in the Claim Form and sign the “Signature of Depositor/Claimant over Printed Name”. Ensure that the signature in the Claim Form tallies with the signature of the depositor appearing in the bank records and the documents to be submitted to PDIC.

Signatures of depositor on the CF and CSS should be similar to the valid IDs to be presented.

For minor depositor (below eighteen [18] years old), parent should sign the CF and CSS.

For By or ITF accounts, the agent can sign the CF and CSS.

For joint accounts: “OR, AND/OR, AND”, each depositor in the joint account should accomplish separate claim forms.

Submit the duly accomplished CF and CSS, together with the following documents:

original evidence of deposit such as savings passbook, certificate of time deposit, latest bank statement including unused checks and ATM card. For joint accounts: “OR, AND/OR, AND”, the evidence of deposit should be photocopied as many copies as there are depositors to the account.

Original and enlarged clear photocopies of two (2) VALID PHOTO-BEARING IDENTIFICATION DOCUMENTS (IDs) with clear signature of depositor/claimant such as Driver’s License, SSS/ GSIS ID, Senior Citizen’s ID, Passport, PRC ID, OWWA/ OFW ID, Seaman’s ID, Alien Certification of Registration ID, Voter’s ID, IBP. Please ensure that the ID number is clear and legible.

Original copy and photocopy of the Birth Certificate from the National Statistics Office (NSO) or duly certified copy from the local civil registrar, for depositors below eighteen (18) years old.

PDIC will not accept claims which are incomplete/lacking in requirements.

4. Upon evaluation of your claim and documents submitted, other requirements may be requested by PDIC to complete the processing of your claim.

If the depositor is unable to file by himself, a representative may file in his behalf provided the representative will submit a duly notarized Special Power of Attorney (SPA). If the SPA is executed abroad, it must be duly authenticated by the Philippine Consul near the depositor’s residence.

For personal filing, a copy of the CSS indicating the status and/or additional requirements for the claim shall be issued by PDIC which shall serve as a notice of the status of the claim.

For filing through mail, a letter-notice of the status/requirements of the claim shall be sent by PDIC to the depositor, if additional documents shall be required.

C. HOW TO FOLLOW UP THE STATUS OF CLAIMS

You or your duly designated representative may follow up your pending claim through:

Telephone inquiry by calling the PDIC Hotlines at 841-4630 to 4631.

E-mail at pad@pdic.gov.ph or written communication addressed to:

Public Assistance Department

Philippine Deposit Insurance Corporation

10th Floor, SSS Building

6782 Ayala Avenue, cor. V.A. Rufino St.

1226 Makati City, Philippines

Inquiry in person at the premises of the closed bank, or at the designated site during CSO period or at the PAD Counter located at the 4th Flr., PDIC Ayala Extension Office, SSS Building, corner V.A. Rufino St., (formerly Herrera St.), Makati City.

When inquiring by telephone or letter, ensure that the following reference information are mentioned:

name of the closed bank;

name of the depositor, and

claim number and/or account number.

Downloadable forms:

Claim Form

Claim Status Sheet

Special Power of Attorney

I would like to re-iterate what was being told in the TV back there in the Philippines.

INVEST .......... INVESTIGATE!!!

Notice to Depositors of LBC Development Bank on Conduct of Depositors Forum

The Depositors Forum is a venue for PDIC to discuss the procedures and requirements for filing claims. Following is a partial schedule of the Depositors Forums:

LBC DEVELOPMENT BANK BRANCHES	DATE	TIME	VENUE
Head Office	Thursday, Sept. 15, 2011	2:30PM	Makati Coliseum, Mascardo St., Brgy. Singkamas, Makati City
Aklan Branch	Tuesday, Sept. 20, 2011	8:30AM	APSTA Teachers' Center 19 Martyr Cor. Mabini Sts., Poblacion, Kalibo, Aklan
Angeles Branch	Wednesday, Sept. 14, 2011	2PM	Sangguniang Panglunsod Session Hall, New City Hall, P. Maragul, Angeles City (near Marquee)
Baguio Branch	Friday, Sept. 16, 2011	9:00AM	CAP Development Center Auditorium, 4^thFloor CAP Bldg., Post Office Loop, Baguio City
Balanga Branch	Wednesday, Sept. 14, 2011	3:00 PM	Brgy. Tenejero Covered Court, Balanga, Bataan
Batangas Branch	Wednesday, Sept. 14, 2011		People's Quadrangle, Batangas City (At the back of City Hall)
Cagayan de Oro Branch	Monday, Sept. 19, 2011	9:00 AM	Brgy. Camaman-an Covered Court, Cagayan de Oro
Cebu Branch	Friday, Sept. 16, 2011	9:00 AM	Sinulog Hall, Public Library, Jones Ave., Cebu (in front of Cebu Doctor Hospital)
Iloilo Branch	Monday, Sept. 19, 2011	9:00AM	Division Social Hall & Cultural Hall, Gen. Luna cor. Mabini St., Iloilo (near Mabini Elem. School)
Imus Branch	Thursday, Sept. 15, 2011	3:00PM	2^nd Floor, Bulwagang Ugnayan (Old Imus City Hall)
Laoag Branch	Monday, Sept. 19, 2011		City Hall Covered Court, Laoag City
Naga Branch	Wednesday, Sept. 14, 2011	8:30AM	Naga City People's Hall (inside City Hall), J. Miranda Ave., Naga City
Olongapo	Wednesday, Sept. 14, 2011	9AM	Rizal Triangle Multi-purpose Center, West Bajac-Bajac, Olongapo City
San Pedro Branch	Thursday, Sept. 15, 2011	9:30AM	Brgy. Poblacion Covered Court, 20 Ramirez Ave., Cataquiz 1 Subdivision, Brgy. Poblacion, San Pedro, Laguna
Timog (Quezon City)	Tuesday, Sept. 13, 2011	10AM	Covered Court, Barangay Laging Handa, Scout Gandia, Quezon City
Urdaneta Branch	Thursday, Sept. 15, 2011	9AM	Main Gym, Urdaneta City Convention and Sports Center, (near LTO Office), Urdaneta, Pangasinan
Vigan Branch	Friday, September 16, 2011	2PM	Cuta Gym, Barangay 9 corner Rivero St. and V. delos Reyes St., Vigan City

Schedule of Depositors Forums for the Head Office and other Branches not covered above will be announced later.
The schedule of claims settlement operations (CSO) will be announced later.
For more information and updates, please get in touch with PDIC through:
1. PDIC Hotlines (02) 841-4630 and 841-4631
2. Email at pad@pdic.gov.ph
3. Website: www.pdic.gov.ph

A video about how the Sub-Prime bubble came about

2011-09-13T04:24:00.000-07:00

source: http://crisisofcredit.com/

If you still have no idea why our world is in a financial crisis here's a video from Crisis of Credit that explains the story in a informative and visualized presentation.

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

Always remember that when risk is not manage and when greed creeps in the likelihood of collapse is greater. It is each and everyone's responsibility to make sure that the financial system is strong. Invest in the right companies, save for emergencies, and still spend on basic needs to keep money flowing in cycle. When one stops and hoards money others will be affected.

Invest wisely and spend wisely as well.

Want to change your financial status?

2011-09-11T14:55:00.000-07:00

I got this seminar in my beloved Krissy's blog moneylifeblood if interested you can follow the instructions and reserved your seats for the seminar. I heard seats are running out already so if you want to make a change in your life attend this seminar. Put Kris Diane Domingo as the referrer.

Your Last Chance in 2011 to Secure Your Future

Sharing with you email from Personal Finance Advisers (Sir Efren used to work in Standard Chartered Bank where he was the Head of Wealth Management. He's a fun cool guy listeners to his seminar would greatly enjoy the experience).

Secure your future!

EnRich

personal finance training program.

Your appointment is on Oct. 27, 2011.

To register for EnRich, please deposit your training investment as follows: BPI Family Bank Katipunan Ave. S/A #6863-0722-45 under the name Personal Finance Advisers Phils. Corp. or BPI Loyola Heights S/A # 3089-1535-72 under the name of Efren L. Cruz. Please email a scanned copy or picture of the deposit slip to info@personalfinance.ph indicating your name and the name of the person who referred you, if any. If you refer attendees, please have them indicate your name as referrer on the deposit slip. You may also fax a copy of the deposit slip and other particulars to (63-2) 939-9593. Kindly note that the Php2,000 per person early bird rate applies to payments received on or before Oct. 7, 2011 . Otherwise, the regular seminar fee of Php2,500 per person shall be your investment.

However, if you successfully refer people, you will be given a 20% referral fee based on the training investment paid. The 20% referral fee, gross of the 10% creditable withholding tax shall be awarded on the seminar date. Refer six people and you earn more than enough (net of tax) to attend the training program yourself.

Do hurry as there are limited seats available.

Philippine Stock Exchange new look

2011-09-10T23:46:00.000-07:00

It has been awhile when the Philippine Stock Exchange switch to a new trading platform and now if you go to their website you will see the new website which they have been preparing and tested in beta.

The new website is kinda still slow uploading most of its components probably since it is just new but in time as the glitches come out and troubleshooted it will soon be well just like when they implemented the new trading platform.

Below are some of the screen shots of the new PSE website; to check please go to www.pse.com.ph

Retiring at 40

2011-09-09T23:34:00.000-07:00

source: http://exoticpetstore.blogspot.com/

While the market is still down deep(yup don't lose hope it will go up anytime now) lets talk about what you and I wanted to do in life.

Back then I have told myself that I will retire at 40. By that, to clarify, I mean to retire from being an employee and be the boss of my own. Kinda big job to accomplish but as they say unless you have a specific goal you want to achieve you will be always reckless and find yourself from where you have always been, that is the beginning.

So make a bold statement. Tell the world what you wanted in the next few years(and for me its about 10 more years to go). Tell yourself, yup of all you have to make yourself aware of what you have been asking or else after starting such journey you might give up).

I have started this blog primarily to document my journey to financial freedom. Many people think "FINANCIAL FREEDOM" is when one has a lot of money. That means you have money enough so that you can just sit down and relax in the comfort of one of your 200 40 hectare vacation houses in the world. Probably this is how you picture yourself being financially free but even though you are filthy rich(as most of us term it) Financial Freedom actually is not measured in the quantity of money you have. Rather one is said to be financially free once one has achieve mastery of how money works for oneself and not the other way around. Probably you may have all those vacation houses I just mentioned but you are still unhappy in spite of what you already have then I guess you are not financially free. Your accumulated wealth has just become an escape or a facade of your unhappiness.

A lot of people also say that to be selfless is the way to happiness. Yeah you did it. You join a charity group once in a while you do give donations and join in activities which are good. But in the middle of it you are still unhappy. Probably you cant put such activity to your schedule any more or maybe financially you are incapable yourself. Instead of feeling the happiness and self fulfilment it seems that your joining a group is choking you. And that is an unhappy situation.

So how should we be able to achieve our goals?

source: http://www.speaklifeyouthministries.com

2 Corinthians 9:7

Each one must give as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver.

We have to strike a balance. As the verse from the Bible says, we must be decided, not reluctant, and not under compulsion. When we make decisions and set our goals we must give our 100% and not just a partial of it. When we give we must not have any hesitation. So if you are hesitant please don't give. Let that opportunity pass. Maybe you are not ready because at the back of your mind there are needs of your own or your family that you have to care of.

So as early as possible decide what you really want(for me that is retiring at 40). Set a date for that and as you do your day to day living ideas or opportunities will open up for you to take action. Yes you may grab that opportunity but again if such opportunity is paired with hesitation or reluctance let go. It simple means you are not ready.

If you are still undecided why don't you take a walk in your village or a nearby park where it is quite. Just walk. They say walking clears the mind.

source: http://tripwow.tripadvisor.com

Will you join me in my walk? Yes in awhile I will be walking in the lovely sunset here in Tumon, Guam(I hope the dark clouds will be fully blown away) the stock market is probably in its bottom and I am thinking which stocks to buy next week.

Technical side: Chart Patters what are they?

2011-09-05T14:48:00.000-07:00

source: http://www.chartpatterns.com/

Here is what Investopedia.com has to say about patterns:

In technical analysis, the distinctive formation created by the movement of security prices on a chart. It is identified by a line connecting common price points (closing prices, highs, lows) over a period of time. Chartists try to identify patterns to try to anticipate the future price direction. Also known as "trading pattern".

So generally chart patterns are formations made by connecting some points of the stock's movement for a period of time. With this definition one chartist may see a different chart pattern from another chartist if they have different time period and different movements as a connecting point.

Chart patterns can be made whether one uses a Candlestick chart, a Bar Chart, or a simple Closing Price Chart. These patterns are not exact and accurate answer to everyone's question if a stock is a buy or a sell but mainly it guides one to at least know what is the probable price action of the stock in the next couple of days base on historical price movement.

Patterns can be classified as Bullish pr Bearish chart patterns.

source:http://www.torycapital.com

Bullish chart patterns are patterns that signify an upward trend meaning price action is predicted to go up because sellers are pushing the price up and buyers are willing to buy at a higher price believing that stock price are still going up due to an expected market recovery or boom in the economy.

Bearish chart patterns are the opposite of a bullish market. A bearish pattern signify an expected decline in prices brought about by fear of economic downfall or an expected poor economy. Such fear spur panic to investors thus sellers sell down to grab as much profit they can take before market gets stuck. Buyers on the other hand bargain hunt thus they bid for lower prices.

Patterns as well can be viewed as a Reversal or Continuation.

Source: http://tradegartleypattern.blogspot.com/

Reversal patterns indicate a opposite action from what has already been happening in the stock's price. If the stock has been on a downtrend for sometime a reversal pattern will indicate an expected upward thus investors anticipate such reversal and thus buy more of the stock to capitalize on the stocks lower price.

Continuation pattern on the other hand indicates that the stock price will be expected to go up further. With this expectation investors will buy more to ride with the stocks seemingly continuing rise.

Ways to be debt free: More on Savings Fund

2011-09-03T23:54:00.000-07:00

source: http://www.dailymail.co.uk

Remember my blog post Allocating your salary or Earnings?

I would like to expound more on the topic on savings. I guess this post will make big wake up call for most of us.

Now lets understand how a normal YOU would do upon receiving your paycheck. First of all even before getting your paycheck you have probably already made plans where will you and your friends will go on gimmick. Or maybe you already called the store where the bag you wanted is being sold and asked them if they can reserve it for you till the night of payday. Or maybe your bags are already pack for a weekend getaway just waiting for your pocket money.

All of those are not bad, you work for your salary so you deserved to spend. So on your pay day you get your check and you invent all excuses to cash that check(if your employer don't do direct deposit). And then you pay the minimum required payment of your credit card, separate the money for whatever your plans for the weekend and the balance you give it to your wife, mom, or housemate for the utilities.

Yup that is YOU. Living from paycheck to paycheck.

You will tell me it is the only way you can de-stressed from the the toxic office or work you have. Or it is only the escape you can afford. Yeah I get you, it is but again why rush to this when you can actually just slow down.

There is no need to go to out of town just to escape the toxic work or probably your toxic house or maybe the toxic people who will be part of your weekend. I know what you mean, I am human too I did and I am still experiencing the toxicity of people and everything but that action is just short term.

After the weekend getaway, after the buying spree or malling, or even after the gimmick where do you find yourself again? Isn't it you are back to the same toxic work that you hate, the same toxic people that you just escaped or left behind for the short moment, or even the same toxic life that you have.

I have a suggestion. But let me warn you that this is not a quick fix and is not applicable to all. Do you understand the Law of Diminishing Returns?

Law what?

Yup its a law called Law of Diminishing Returns. This law is in connection to savings.

Let me first tell you what is Law of Diminishing Returns mean.

Law of Diminishing Returns states that:

Decrease in the marginal (per-unit) output of a production process as the amount of a single factor of production is increased, while the amounts of all other factors of production stay constant.

source: http://www.relationship-economy.com

Ok in layman's term: The satisfaction you get decreases when a particular factor is increase given that other factors remain the same.

For example as you increase your weekend getaway as time passes(meaning you increase the number of your getaway because you feel stress out every week in your work) it will seem that your excitement to go and your enjoyment going out lessens and at some point you don't feel your de-stressing at all. In the local term this is what we call "nakakasawa."

Back in my college years this topic was discussed in my economics subject(where were you when this was discussed?). The most example us is the bottomless Coke. In a certain restaurant there is a Coke machine where all customers who pay are given a single size cup and they can refill as long as they can and remember no sharing. The maximum a normal person can drink is up to 5 cups. With this restaurants already included the cost of this to each combo meal that comes with a bottomless drink. If you all already fed up at 3 cups of Coke they win because in reality you paid for 5 cups(remember the cost of such bottomless drink is included in the price you are paying for the meal) and if you go beyond 5 cups(you sure have a big storage there) they lose.

source: http://www.coca-cola.com

We have to apply such to our savings.

Yes you save for the gateway or anything that you want to buy that you think you deserve but do you think buying and buying such will make you happy in the long run? Probably for some yes specially for those who collects bags and treasure them like their babies. But it is a truth that you would eventually realize that it is a pointless spending when you don't find that happiness that such spending once brought you.

Here is the solution that I am talking about. Why don't you save and save and when it seems that you don't have that much liking already for the getaway or that bag, or that gimmick you set that saving aside for something more permanent? We call this delaying gratification.

Yup so many people and gurus have already talked about this and again I am reiterating their advice and adding something more; why don't you save up for something permanent.

Is your work giving you stress? Then why don't you save up so that you wont work in that toxic work anymore? Why don't you be the boss of your own company. I know that is more stressful. Yup it may be more stressful running your own business but in this one you have control of everything.

If you are in my generation you night have also watched the Fullmetal Alchemist anime. Yup remember the rule of Alchemy: Equivalent Exchange.

source: http://media.photobucket.com

source: http://fma.wikia.com

Such is very true. What ever you save up has a value. Everything in this world is not free. If you want a comfortable life you have to sacrifice now to achieve it in the future. But then you ask me how come others are so rich that they don't worry and it seems they don't observe such Equivalent Exchange. To tell you the truth they actually did exchange something for what they are enjoying now.

Besides them sacrificing something along the way they have learned how to make money work for them that it came to the point that even if they are sleeping their wealth works for them a billion times harder than they did.

How about you will you stay living from paycheck to paycheck waiting for the Law of Diminishing Returns to get at you and will feel it seems your stuck in a rut or will you be brave to sacrifice something in exchange for something so that you will be happy the rest of your life?

I am working on it I hope you are also working on it as well.

Citiseconline sponsored show in GMA7: Pesos and Sense

2011-09-02T23:57:00.000-07:00

http://www.pesosandsense.com/

I was just checking my Citiseconline Brokerage account when I noticed this show that is showing today at GMA7(Channel 11).

The show is titled Pesos and Sense. Below is a small preview of what is in the said new show:

It is a a 30 minute show that discusses all about how money works just like what the "tindera" in the video said. Wow if all Pinoys have the same wisdom as the lady above I would believe poverty will surely end in the Philippines .

Their first guest is no other than Bo Sanchez.

http://www.pesosandsense.com/

Again it is showing in GMA7 (Channel 11) 8:30 to 9:00 am and I guess every Saturday. I hope more shows like this will be on the free airwaves for our Kababayans to watch. It would be great to keep it short and simple in the most watch TV slot so that our Kababayans will learn something about how money works and how can they make it work for them instead of them working for money.

Have you lost money like Steve Jobs?

2011-09-01T02:21:00.000-07:00

source: http://www.blogworld.com

“I’m the only person I know that’s lost a quarter of a billion dollars in one year…. It’s very character-building.”

- Steve Jobs

Have you lost already in your stock investments like Steve Jobs? Probably not or probably you might have. And as the great man of marketing and innovation said "It's character-building."

I have two online stock brokerage accounts. Ask me now how is my portfolio on both accounts? Answer is: Both are at negative after the sudden stung the stock market took from recent economic woes. How much? About 1/5 of my total investment.

It is sad to hear when people ask me about my stock investment and how much I already earned expecting me to say that I already earned one million in just 6 months but in reality I only earned about 1/4 from my original investment(which is not yet a million by the way). And when they learned about it they would say "oh I thought I can be a millionaire in the stock market."

Here is the truth: The stock market is a risky place to invest but along with risk comes returns.

source:http://wilderdom.com

That is why we have what we call calculated risk. We place our investments in stocks that will generate an acceptable future earnings at the same time buying such stocks when they are at their bottom prices. We only put free cash in stocks. We are investors not gamblers.

From time to time we might do short trades on our stocks to seize the moment and pocket gains to further buy stocks of great value that will give us at least two bagger returns within the next 3-5 years.

So should we stop investing in stocks because we made a bad stock investment decision and lost money?

We should rather be good students who learn from such mistake and use that learning experience to avoid the same mistake and develop a better way of doing stock investing.

Yes as Jobs said it is humbling; accept your mistakes and learn how to turn your mistake into your point of achieving your goals.

source: http://www.triathlontrainingisfun.com

Investing Word of the day: PCD Nominee Corporation

2011-08-30T01:51:00.000-07:00

source: http://www.pse.com.ph/html/ListedCompanies/pdf/2011/MRC_Top100_Jun2011.pdf

I know this is weird.

This name has always been appearing in the various top 100 stockholder list of most Philippine listed corporation. I was just checking some financial reports of listed companies and one of them is MRC Allied Corporation(MRC) which as of last reporting about 98% of its outstanding shares are held by PCD Nominee Corporation. That makes MRC wholly owned by PCD Nominee Corporation.

So who or what is PCD Nominee Corporation?

I tried searching the web and Wikipedia.org gave me an answer.

PCD Nominee Corporation (PCNC) is a wholly owned subsidiary of the Philippine Central Depository, a corporation established to improve operations in securities transactions and to provide a fast, safe and highly efficient system for securities settlement in the Philippines. PCNC acts as trustee-nominee for all shares lodged in the PCD system, where trades effected on the Philippine Stock Exchange are finally settled with the PCD. Persons who opt to trade using the PCD do not receive stock certificates as an indicator of ownership as trading using the PCD is completely paperless.

Basically PCD Nominee Corporation holds all shares of stock traded in the Philippine Stock Exchange for all investors thus PCD Nominee becomes a trustee of all the shares for the investors thus leading to a paperless transaction.

Free PSE seminar: Building Wealth with Stocks

2011-08-27T05:48:00.000-07:00

My friend Rowin Santos who is working in China sent me an email regarding the free seminar from Philippine Stock Exchange. It also says that you can tour the PSE.

Details as follows:

Seminar title: Building wealth with Stocks

When: Every last Tuesday of the month ( that would be on August 30 for this month check with them if there open though) 10:00 am to 12:00 noon

Scope: Basics of stock investing, which includes a lecture and a quick tour to the PSE

Venue: 3/F PSE Training Room, PSE Tower One & Exchange Plaza, Ayala Avenue, Makati City

If interested please register via email stating your full name and contact number to marketeducation@pse.com.ph. Handouts will be emailed so please register early.

For other seminars that you might be interested you can check out PSE's calendar of seminars(provided by other thus with fee) at http://www.pse.com.ph/html/NewsRoom/memos/2011/MEA_2011-0017.pdf

Long weekend and Non-trading day

2011-08-27T05:02:00.000-07:00

source: http://www.yahoo7answersblog.com

I was unaware that there will be a long weekend in the Philippines(this is the hassle of being employed in another country).

The following days are both non-trading day for the Philippine Stock Exchange:

August 29, 2011 (Monday) National Heroes Day

August 30, 2011 (Tuesday) Eid’l Fitr (Feast of Ramadhan)

source: http://www.pse.com.ph/html/NewsRoom/memos/2011/TPA_2011-0041.pdf

Such time period might have an effect on the stock market on its opening on Wednesday. Some traders are already decided on which stock they will buy and which stock they will sell. For investors with the past weeks jitters on the Dow moving up and down will be picky. But nonetheless it is still a good time to buy since most stocks are still at their low just be on the look out if it will still slide down further.

Mining has been performing well while the rest of the other sectors are sluggish. It is the also the end of Ghost month so when the Asian funds start to buy in there will be a stock movement.

To all my fellow Pinoys enjoy the long weekend and be careful with the storm.

The PSEi compared to some other market

2011-08-26T01:52:00.000-07:00

The picture below just makes me smile. Compared to DJIA, DOW and Warren Buffet's Berkshire Hathaway PSEi is still okay so far.

What is in store for PSE for the remaining months of 2011 and how about the coming year 2012?

PSEi is in green, DOW is in maroon

Something out of the this Blog: August 31 Blog Day

2011-08-25T05:21:00.000-07:00

Yup this is kinda deviating from what my blog is all about but while the stock market is in consolidation mode and everybody is fretting over debt crisis here and there let me share with you 6 blogs that I have been reading for sometime now.

And here they are:

1. Zen Habits @ www.zenhabits.net

The very first time I saw this blog I was amazed. The blogger, Leo Babauta, was once a resident of Guam where I currently work. And another thing that really amazed me is that his blog is one of the most influential blog. You can check Time Magazine for that or maybe search the web using most influential blog as a search term. Its all about how to be simple and how to live your life by slowing down, de-cluttering the busy life, and just enjoying the passing time of life. And one thing more he earns a living blogging and yet his blog is ad free now that is amazing.

2. BoSanchez.ph @ www.bosanchez.ph

He is one of the country's sought after speaker and retreat master. Also a certified best selling author with his books like Simplify and Live a Good Life, 8 Secrets of the Truly Rich, and Finding Your One true Love and more. His blogs are mostly his topics in the Light of Jesus Community Weekly Feast celebrated everywhere as of I know.

3. Gus Cosio Says So @ www.guscosio.com

Well Mr. Gus Cosio's blog ha sbeen one of the blogs me and my investor friends follow. His wise words of wisdom has always shed light to our minds when the stock market is in turmoil. His comments and opinions on current economic situation soothes and calms our agitated emotions specially in this risky world of the stock market.

4. The UltraLife of Jomar Hilario + Internet Marketing + Philippines @ www.jomarhilario.com

He is one of the reasons why I still blog now a days. Blogging may be one of the source for passive income but this the slowest of the four means which is blogging, affiliate marketing, online selling, and virtual assistant gig. And that is why I still follow his blog and some of his seminars to direct my goal from an employee to be a home based entrepreneur doing online jobs or gigs .

5. Studio Saldana @ http://studiosaldana.com/blog/

I just love the pictures in this blog specially the pre-nup and wedding pictures. Just love the photography the make me just stare in awe.

6. Yugatech @ http://www.yugatech.com

Well Yugatech is also one of the reason why I started blogging. I saw a newspaper article about earning money blogging and Yugatech blogger Abe Olandres is one of the resource of that article. But besides that Yugatech has been Philippines great source of technology review from laptops to cellphone and anything techie under the sun.

Puregold Initial Public Offering

2011-08-23T02:16:00.000-07:00

source: http://puregold.com.ph/

I was glancing at my Google Alerts in my Outlook mail when my eye caught this news.

Source: http://www.manilastandardtoday.com

SEC approves Puregold’s P12.4-b public offering

by Jenniffer B. Austria

The Securities and Exchange Commission en banc approved Friday the P12.4-billion initial public offering of Puregold Price Club Inc., the supermarket chain owned by Filipino-Chinese businessman Lucio Co.

Based on the approved timetable, Puregold said it would set the final price of the shares on Sept. 21 and start offering them from Sept. 23 to 29. It plans to list the shares on Oct. 5.

The company will offer up to 600 million in primary and secondary shares and another 90 million common shares to cover overallotment.

The public offering could generate as much as P12.4 billion in proceeds based on an assumed maximum price of P18 per share.

Puregold said it was spending P6.26 billion from 2011 to 2013 primarily to put up new stores in Davao, Rizal, Cavite, Bataan, Pangasinan, Baguio City, Ilocos Norte, Caloocan, Bulacan, Camarines Sur, Laguna, Quezon City, Legaspi City, Iloilo City, Leyte, Cebu City, Tarlac City, La Union and Albay.

Puregold said it would use proceeds from the IPO to settle debt and finance store expansion.

The company plans to settle P2.24 billion worth of debt with China Banking Corp., Metropolitan Bank &amp; Trust Co. and Banco de Oro Unibank.

The supermarket chain hired HSBC and UBS AG as joint global coordinators and international lead managers and BDO Capital and Investments Corp. and First Metro Investments Corp. as domestic lead underwriters.

Net sales reached P17.3 billion in the first six months of 2011, up 41 percent from P12.3 billion year-on-year while net income grew 270 percent to P782 million from P212.2 million.

Puregold will offer 500 million in primary shares and 100 million in secondary shares owned by existing shareholders, including Lucio Co and Susan Co.

The company plans to sell up to 420 million common shares to international investors and 180 million to local investors.

Puregold is the second-largest retailer among the hypermarkets, supermarkets and cash and carries in the Philippines based on gross sales in 2010.

The company has grown significantly since it commenced operations, expanding its business from one store in 1998 to 72 in 20 cities and 22 municipalities throughout Metro Manila as of end-July 2011.

The company focuses on two customer segments, which are retail customers and resellers. It offers three retail formats and store brands, namely hypermarkets, supermarkets and discounters.

Approximately 65 percent of its customers are C and D markets with a monthly income of P8,000 to P50,000.
Source: http://www.manilastandardtoday.com

In my opinion we should do our due diligence before jumping into this IPO. The expansion of Puregold has greatly help its bottomline and also since part of the proceeds of the IPO is to be use to settle obligations the remaining payment will be use to put up more stores specially in the far flung provinces in Northern Luzon and probably Mindanao.

It is a new opportunity but again one should carefully study Puregold's long term profitability. I am searching for available financial statement of the company to do fundamental analysis but so far haven't found one. If you know where to find one please leave link in the comments below.

Revisiting my first post: Is it a good time to invest now?

2011-08-21T00:05:00.000-07:00

source: http://www.stockginger.com

It is worth reading an old post.

Back then the situation is pretty much similar that is we are in the middle of a financial crisis. (Click here to read my very first post. Please leave your comments on how different is today's crisis from the last). My question was "Why invest?"

Now this is my question: Is it a good time to invest now?

Yup the stock market had a roller coaster ride. The Philippine Stock Market reached its highest two or three times before it succumb to its current level due to US debt crisis. You might wonder why am I asking if it is the right time to invest. Well as I recall again there is no right time to invest because "now" is the right time to invest. But it is so scary out there don't you think. The DOW dive nearly 600 points down then recovered back then went down again, it is so risky and still why do I say it is a good time to invest now.

source: http://www.bloomberg.com/apps/quote?ticker=INDU:IND

Now probably you have to ask me direct, Louis why is it a good time to invest now?

Here are my reasons:

1. Stock prices of blue chips companies went down therefore you

are getting them at a bargain.

2. The current financial crisis is of the US not of the world yet. So it

may have affected other markets but surely it is temporary as it

has always been. So take advantage of the time.

3. Stocks of true value will come out in such situations. Those who

are really just mere stocks will fall but those who truly deliver

profitability amidst crisis will stand out.

4. If you already have stocks it is a good time for you to average

down big time.

So what is your move now? Probably you might say you'll think about it. And that is good as well. In stock investing you always have the final word. No one can tell you what to do but only you as an investor have to push that buy button or if you prefer to sell then sell button.

source: http://iamamentallychallengedteen.blogspot.com

So is it really a good time to invest now? Would appreciate sharing your thoughts by leaving comments below.

What are Growth Stocks

2011-08-20T19:30:00.000-07:00

source: http://www.benzinga.com

Growth stocks are stocks whose earnings are expected to grow at an above-average rate relative to the market. A growth stock usually does not pay a dividend, as the company would prefer to reinvest retained earnings in capital projects.(source: www.investopedia.com)

As the definition above says a Growth Stock is a stock expected to grow at above average as compared to the PSEi so for an example we have PX(Philex Mining Corp.)

source: www.bloomberg.com

The above comparison tells it all. Sometimes growth stock companies don't declare dividends and re-invest earnings to fund expected growth. PX was once expected to slow down when its mine in Padcal, Benguet was said to mine out in the near future about 2012. But the recent findings that such mine will extend for more years geared PX to an expectation of more earnings that it even caught the attention of Manny Pangilinan leading to MPI's(Metro Pacific Investments) entry to PX.

Last year my investor friends and I established a TP(Target Price) of 21 pesos per share for PX when it was in the 12-14 pesos level. But today PX is now at 27 pesos level way above our TP.

With the mining boom expected to come back to the Philippines PX is expected more to rise up from its 27 peso level. Other mining stocks like LC/LCB, AT, and other are expected to peak up as well. When will that be nobody really knows yet but expectation of growth is there thus these stocks are called Growth stocks.

Some things one should be aware of

2011-08-19T21:12:00.000-07:00

source: http://www.twincommas.com

I was checking my Blogger account and I was able to get a glimpse of an old post(In my starting days as a blogger excuse my wrong grammars and misspellings) that talks about two things that you and I must avoid.

Click here to read my blog post.

Greed as define by Dictionary.reference.com means

excessive or rapacious desire, especially for wealth or possessions.

As a stock investor I know your goal is to be financially free but be on your guard.

As we always mentioned "moderate your greed."

It creeps on us once in awhile . The stock price is starting to go north and you have been thinking to sell it once it hits 20% profit. But after a day it hits 32% and as you are watching it still rises. At some point in that you tend to forget that your plan is to sell the stock and pocket your gains but the continuous uptrend of the stock stops you from doing so. That feeling of you telling yourself "more more more!" might be that greed starting to grow within.

I am not saying that it is bad but when you have a goal and because of the continuous rise keeps you from doing as plan because you want more that is greed. So pocket your gains as much as you can. Dont let your greed overtake you.

When there is greed I believe there is also envy.

Envy simply means you a feeling of discontent and resentment aroused by and in conjunction with desire for the possessions or qualities of another. When you see others saying that there stock went up 45% isn't it you also desire your portfolio is the same.

Now is that envy? I don't think so yet. Desiring to be a better person or have a better portfolio is also not bad at all but when you feel that you are nothing and the other person is better and you start to want to be that person I guess that is envy.

As a person one should have his or her own standard and not somebody else standard. That is miserable because no matter what you do you yourself brand yourself as second class good for nothing. That is depressing and worse is you don't do something to get your confidence back and start setting your own definition of success.

Success is not that you can buy the same Lambourghini your rich neighbor has rather success is the point where you are content of what you have achieve on the standards you have set.

People nowadays are lost because they don't have a clear picture of their success because they don't have a standard of their own in the first place.

Make it a point today to write down what you want in your life. Review them and make them your standard. And from their it will be success every time you achieve even one only.

Investing word of the day: Beta

2011-08-16T04:01:00.000-07:00

source: http://tiie.com

I always see this word in the analysis of finance websites like Reuters.com and Bloomberg.com but when I searched what is it and what use is it for me Investopedia's video has answered all my questions. So see the video below and learn how you can use Beta in your stock trades.

Oops I know you didn't quite get it so let me explain.

Beta coefficient or simply Beta is a measure of volatility or risk as compared to the market as a whole. Philippine listed stocks are compared to the PSEi to compute their Beta.

In a way it is a multiplier which uses the PSEi as the base comparison. As the video said it is a way of knowing the movement of the stock as compared to the base it is compared to. Below is the generalized assumption as quoted from Investopedia.com

A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market. For example, if a stock's beta is 1.2, it's theoretically 20% more volatile than the market.

To sum it up:

If Beta is = 1 stock follows the trend of the PSEi
If Beta is > 1 stock is more volatile than the market thus
unpredictable
If Beta is < 1 stock is less volatile than the market thereby slow
moving than the market but stable

Online Broker: Philstocks.ph

2011-08-15T02:25:00.000-07:00

source: https://www.philstocks.ph/PublicV3/default.aspx

With the recent upgrades of most Philippine online stockbrokers, Philstocks.ph which is the online brokerage arm of Accord Capital recently lunch there upgraded online platform taking pride in their all in one page trading platform.

I don't have an account with Accord/Philstock but I am presenting these online brokerage firm for newbie investors to have a chance to look at their platform and even possible chose Accord/Philstocks as their online broker.

Below is a video presentation of their all in one page trading platform:

Interested in Philstocks?

You can attend there PISO to learn more.

What is PISO anayways?

Philstocks Investing Stocks Online(PISO).

The PISO Series is the newest learning service offered by Philstocks Live. In line with the company’s direction toward de-mythifying and democratizing the stock market, the PISO Series seeks to present the stock market as a viable investment option for every Filipino. PISO: Jumpstart, the first offering of the PISO Series, is a highly-interactive and dynamic learning session specifically designed for first-time investors where our dedicated Philstocks team will be @ Your Service.

PISO (Philstocks Investing Stocks Online) is…

• Informative learning about the stock market

• Finding the right investment options

• Meeting people who aspire for success

• An exciting way to reach your financial goals

Call them to reserve a seat at 632-687-5071 local 146

Disclosure: The author is not paid to promote Philstocks.ph or Accord Capital Securities Corporation.

Starting early

2011-08-12T23:59:00.000-07:00

source: http://economictimes.indiatimes.com

Remember our generation?

For my friends out there who is within my age group do you remember when our parents ask you to save some of our allowance and deposit it in a bank? That was our generation, the saving generation. I remember my dad opening an account for me and my siblings and deposited 50 pesos(yeah back then that amount still has a value but now its just plain 50 pesos).

http://www.bpidirect.com/download

But why did our parents did such. To tell you the truth I don't really remember what happen to that account. The very first bank account which I really open for my own was with BPI when I was in college to handle the money my parents sent me for my education in Manila. For most of us our parents are from the provinces and the common notion to gain financial freedom is through savings which was still good at that time. When you are in a rural area savings are good emergency funds that you can pull out in case of emergency. But times has already changed.

Remember my post about how I allocated my salary to six funds?(click here to read that post) Yup these times ask for such action. It is not enough for us to save but we should as well set aside money for emergency, for investments, and other bunch of funds or baskets or envelopes if that is how you do your budget to ensure that when such is needed we can really pull out something.

That is why it is wise to start while young.

Is it too late for us? I wouldn't say that it is too late but rather let us not waste time while we are at it. At the same time if you are a parent as well it would be nice if you can start your kids not only savings but also investing. This morning I was cleaning some parts of our apartment's backyard where short grasses have grown. Some are easy to pull out but some required my 100% strength to pull out. As I was doing manual labor I realize that the longer or deep the roots are the harder it is to pull.

Why don't we make sure that the next generation, that is our kids, will have deep roots in savings and investing. Now most kids are more prone to materialistic lifestyle which they actually acquired from us.

Why do you expect a child to save when you yourselves can't. Just like the old TV commercial that says "anuman ang ginagawa ng matatanda; ginagaya ng mga bata" (whatever adults do kids follow)something like that.

It is a sad truth. We complain why kids today are so unruly, spends a lot, and into such profanity at an early age but in reality what we see is a reflection of ourselves. What you and I see is what we are in compressed form.

So how are we going to correct this?

http://www.getxbox360.com/

Start early. There is still time. If you have a credit card debt, cut your credit card and stop buying unnecessary things. Little by little pay your debt and simplify your lifestyle. If you want your kid to stop bugging you buying the latest PSP or XBox you yourselves should stop buying new cellular phone every other two weeks. If you want your kids to save up only go once a month to your favorite resto which you usually go to for dinner every other day.

Start small, think big. Start early.

It doesn't have to be a sudden and major change because when you do that you will experience withdrawal syndrome. Cut your spending little by little.

I remember a story of a former alcoholic who nearly lost his family. One day it just came to a point where he was so drunk that he didn't recognize his wife and kids when he went home. He hurt them. After the effects of the alcohol subsided he realize what he had done and wanted to change. He seek a friend's help who is also priest. His friend told him to spend a week with him. After talking to his wife and kids he bade farewell and spend the week with his friend.

First day was a shocker. When he opened his friend's refrigerator it was full of beer from the freezer to the vegetable drawer. Imagine how he was surprised(probably his friend is also alcoholic). But then his friend told him to grab as much as he can. He was hesitant at first but he got one. After that he accompanied his friend on his priestly work.

source: http://www.myspaceantics.com

In the evening after dinner he ask his friend about the refrigerator full of beer. His friend told him drink as much as you can today but tomorrow and there after you take out one bottle until you finish all. With that he said okay and did so.

After a few days he started to noticed something. Since he has taken out one bottle every other day his craving for alcohol seems to dwindle down until he can manage to live a day with just one bottle. That is the time he realize his friend's point. Human nature dictates that it holds on to what is already established. That is why he has to take out that thinking or psychology little by little until he it is taken out of one's system.

Sorry for the long story but lets apply this to our saving and investing. Most of the people I meet who have known about my investing venture would ask "how much have you earn now?" expecting me to tell them I earn half a million pesos in six months. It could be possible if I am trading and speculating and if I have a chunk of capital to do so. But I opted to invest and trade a small portion rather than trade and speculate. Because when I trade and when the stock market is down surely I will get a heart attack.

That is why start early so that you can start at small amounts. When you add all this small savings and invest them in a long period this small amounts multiply. They don't grow linear but rather exponential because of compounding which according to Albert Einstein is Ninth Wonder of the World.

source: http://mariosingh.com

Start early; if you are at my age it is not too late but you have to start right away. If you are a parent teach your kids savings and investment. Teach them that when they own a stock they are part owner of the company or if they put their money in a mutual fund a portion of that fund's earnings goes to their investments.

Again I say, START EARLY!!!

ONLINE BROKERS: FIRST METRO SECURITIES' PLATFORM UPDATE PART 2

2011-08-12T15:04:00.000-07:00

Other parts of the First Metro Securities' Quote tab update are below.

Broker info consist of Broker Rankings and Broker Activity for those who likes to follow broker activity. This is good to monitor foreign buying by foreign stock brokers like Macquarie, Daiwa, Deutsche and others.

Here we can see which stock a particular broker is stock piling which may give us an idea what will be next stock pick or sell

Market Stats simple widens the report we usually see in the home page like which stock is actively traded, top gainers, and top losers

And finally a snapshot of the PSEi in one page together with its sub-indices

Online Brokers: First Metro Securities' Platform update

2011-08-12T07:25:00.000-07:00

source: www.firstmetrosec.com.ph

Let me first apologize. I mentioned months ago that I would be posting about some features of the two online brokers that I use but unfortunately I was only able to make the introduction and CitisecOnline's Stock Quote section. I got busy with work and markets has been so volatile thus the need to focus on analysis for better trades. Nonetheless First Metro Securities' note on their website caught my attention. So here is the first part of this First Metro Securities Platform update.

In case you haven't read my post about the online brokers I use and CitisecOnline's Stock Quote click the links below:

MY NEW SEGMENTS IN MY BLOG: THE ONLINE STOCKBROKERS THAT I USE

CITISECONLINE PLATFORM 1: STOCK QUOTE

Here is the screen shoots of First Metro Sec's update on their Quotes tab

In the Main Quote Sub-tab you have the options to chose to see Multiple Quote to see quotes for various stocks you are interested in and with just one click on BUY or SELL you will be directed to the New Order Section in the TRADING TAB

The BID AND ASK section gives information about the volume and price for bid and ask. You have the option to view stocks by index category.

HIGH-LOW-LAST section is nearly the same as BID AND ASK showing information about the open, high, low, close information of the stock.

In the STOCK INFO section it gives a particular information about a stock. See screen shots below.

Note: Other features will be in the Part 2 of this post.

In general the update of the QUOTES section of First Metro Sec is an enhanced version and also other features from the ANALYTICS section is included.

Investing word of the day: YoY or Year on Year

2011-08-12T02:19:00.000-07:00

Year on Year or sometimes Year over Year is a terminology that means a comparison of the current year against last year.

Let us use the data below for a simple analysis of a company's performance.

To compute YoY ratios we follow this simple formula(remember to click your "%" in your Microsoft Excel to express the value below in percentage:

Now base on the above information Sales of the company have grown or risen 10% year on year while Cost of Goods Sold(COGS) have also risen into a whopping 44.44% as compared last year.

Though there was a 10% increase in Sales the big 44.44% increase in COGS contributed to the decrease of Gross Profit by 18.18%. A decrease in Expenses by 20% as compared to last year curbed the big chunk of decrease caused by the increase in COGS but not enough to eliminate such impact bringing the Net profit decrease to only 16.67% as compared to last year.

source: http://www.beijing-kids.com

Too technical?

It only means that the decrease of Net profit was due to big increase of cost of sales but thank goodness a decrease in expenses lessened the impact of such increase.

source: http://www.allposters.com