How to invest in Philippine Stock Market moving sideways?

How to invest in Philippine Stock Market moving sideways?

The Philippine Stock Market has been moving sideways now.

So what’s the good thing to do in such a situation?

Here’s a good read on how to invest in this phase of Philippine stock market.

It has lot of helpful insights and even some stock recommendations you can buy for your investments.

I’ve highlighted below some interesting points raised that are really helpful for you as investor in the Philippines.

Enjoy shopping!

Have fun investing!

PS1: If you want to be an affiliate of Bo Sanchez’ Truly Rich Club, giving you an opportunity of a passive income, you can check it here!

PS2: Make sure you’re part of our private Facebook group – Investing in the Philippine Stock Market – Tips and Tricks!

Source: http://business.inquirer.net/67555/how-to-make-money-in-a-sideways-market

How to make money in a sideways market

Your job and your ultimate treasure

One day I told my officemate, “Congratulate me!”

And she said “Why?”
I replied, “Because I’m leaving the office early!”

Yup, that time was only few minutes after 6pm. It was a deviation from my usually late night-time going back home, which is usually past 8 pm.

My office is located in McKinley area, Taguig so I had to take an FX first to get to the nearest MRT station, which is Magallanes… only to be surprised by the very mega long queues of people at the mercy of helpless MRT operators.

The line is so long that it has already reached the ground down from the second floor!
I didn’t care at first thinking that I would just need to go to the South-bound lane and take a round-trip going to North instead.

But nah, it’s the same picture of long-line of people stuck on their places, waiting for the signal of the operator to let the guard allow entry to the station. The line has also extended down to the ground floor!

Now imagine you’re in that situation, hurrying to go home to give yourself a good rest, only to find yourself extending your work hours in that crowded place.

I really honor all those people who could persevere such an indirect torture. You see, one of my weaknesses (or strength) is not having that ability to wait non-sensely. I value my time dearly.
You know how impatient I get sometimes? 

To the point that I would open a book to read while my laptop is starting up. HAHA

When I commute, I make sure I have a book to get myself rid of non-sense waiting while the train arrives and once I get inside. Sometimes, I treat myself with relaxing music instead when I don’t feel like reading. But in any case, I make sure I use my time wisely.

So going back to my story, after a series of going back and forth thinking which way to fall in line, I decided instead to go to the nearest fast food chain and make this blog while waiting for the crowd to fade out. After almost two hours, I went back to the station, and true enough, it was far more convenient than it was during the jam-packed rush hour.

Excellent Quotes by Warren Buffet

Excellent Quotes by Warren Buffet

taken from Facebook

My Maids Are Now Richer Than Many Managers (by Bo Sanchez)

My Maids Are Now Richer Than Many Managers

Three years ago, I taught my Maids how to invest in the Stock Market.

People laughed at me when I told them what I was doing.

“That’s too much for them,” one friend told me. “They can’t handle that. It’s better to teach them how to put their money in the bank.”

But who’s laughing now?

One of my maids has P308,388 in her Stock Market account.

My other maid has P176,465 in her account.

That may not be much to you, but to them, they feel very rich.

And here’s a fact: My Maids are now richer than many Managers.

I’m not kidding.

You see, I talk to a lot of Managers when I give corporate seminars.

Many of them have Zero savings and are buried in debt.

My maids? They’re confident that they’ll have P5 Million in 20 years.

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If you’ve got 20 minutes a month,
You can work a financial miracle in your life.

Freedom day, One Minute Millionaire and VUL Investment

Happy Independence Day!

Holidays could be the sweetest words I could hear.
If you’re like me who always have something on the table, every holiday announcement by the government is a lovely music to my ears.
So I took advantage of this holiday and gave myself a good rest. Yeah, I was celebrating Independence Day of the Philippines on my bed, with lot of Z’s going out of my mouth. But before you accuse me of not being patriotic enough, I want to add that I also spent some time reflecting and cherishing the spirit of this celebration before I took that loooong siesta.
I think it’s even more meaningful for our fellow Filipinos who are out of the country.
I know they have been dreaming of a better Philippines, a country that is ready to meet the needs of each and every Filipino.

I’m one of those who regard our OFW as our new heroes in our time.
The pain of leaving your family behind just to give the needs of their family is real. In fact, they are part of the group to whom I dedicated my first financial book – Investing in the Philippine Stock Market for Beginners.
I myself couldn’t even imagine myself working in a province far from my family. How much more difficult it would be for me working in a foreign nation.  Of course, I’m also aware that time will probably come when I have to just do it and I just hope that I would be ready by then. J

One Minute Millionaire

I’m currently reading the book One Minute Millionaire by Robert G. Allen and Mark Victor Hansen.
Yeah, another book to make things easier and clearer for me.  Another investment in knowledge that will pay better returns. And I love the book so much!
I noticed that buying books has been one of my vices. The pattern has been to buy a new book even after I haven’t finished the last book I had bought. HAHA.
The book is basically helping people become an enlightened millionaire one minute at a time.
It’s thrilling to know that every 60 seconds, someone in some part of the world becomes a millionaire. My mind was opened up that indeed, there’s no easier time of getting your first million than now. With the advent of technology specifically of the internet, everyone now has equal reach of getting that millionaire dream real.
To give you some preview on it, its first few pages discuss the two ways of achieving a million dollar dream: the long route and the short route.
The difference between the two is on the method of how you attain that million dollar dream.
The long route is basically saving money each day and letting it accumulate and grow with time. As such, this is the safest and easiest way to your first million dollar.  You can study the chart below:

How the Investment of only one dollar per day grows into $ 1,000,000.

% Interest	Number of years to grow into A Million Dollars
3	147 years
5	100 years
10	56 years
15	40 years
20	32 years

So to become a millionaire in your lifetime, you just need to (1) find an investment that yields at least 10% annually after taxes, and (2) have the discipline to save each day.
Translated to Philippine context, you can become multimillionaire just by saving at 50 pesos per day and having the two requirements above. Isn’t that good news?! J That’s just 1,500 per month!
But that’s the long route. Naturally we want things to be fast, including building your wealth.
So here are the four major ways of becoming a millionaire faster and thus gives you a shorter route.

1.       Investments

2.      Real Estate

3.      Business

4.      Internet

I’ll share with you great insights that I get from that book in related blogposts in the future. But for now, realize that it’s good if we use these four faster routes as a combo tool in our quest for financial freedom.

VUL Investment

Also last Monday, I have applied for a personal insurance plan. It’s a VUL offered by SunLife. VUL means Variable Universal Life. Simply put, VUL is a combination of insurance and investment.

As shared by my friend-agent, the first goal anyone should have is to be safe; then the goal of a comfortable life comes second.
In other words, before one strives to have a comfortable life, one needs to ensure to have a safety net in case something unfortunate happens in your life.
The first goal - to be safe – sounds very simple, yet very few are aware of its utmost significance.
The second – to be comfortable – is something that everyone looks forward to.
You see now what hooked me up with the VUL type of investment. VUL answers those two financial goals: the insurance for the safety net, and the investment for the wealth building part.
Because aside from its insurance protection part, it can also serve as an emergency fund and a retirement fund.
Emergency fund because you can actually get your money back anytime and use it for unforeseen life surprises; and retirement fund because once you’re done with your premiums, then you have the option to keep it there or get it. So it’s also like your giant piggy bank that will help answer your retirement needs.

Personally, I have chosen a 10-year plan with monthly premium of 1.5k.
In case you also want that type of investment, or if you have any other question about it, just leave a comment below and I’ll ask my kind friend to contact you directly. Note that there are several factors in determining the annual premium of a policy. They are, but not limited to, 1. Age 2. The amount of coverage and 3. Smoker or Non-Smoker. It’s important that you start as early as possible because every year you delay means an increase in your monthly premium.  

That’s all for now!
As you continue to cherish the national freedom we have now, don’t forget to also work your way to your financial freedom day!
Hope you enjoyed your holiday!
Have fun and millions investing!
Mabuhay ang Pilipinas!

PS: Do you want to have a copy of the book 8 Secrets of the Truly Rich? Hang around for future posts on how you can get one!
PS2: Makes sure you’re in on our Facebook exclusive group – Investing the Philippine Stock Market – Tips and Tricks!
PS3: June 12 1898 is our independence day. When do you plan to set your financial freedom day? Yes, you need to add time element to your goals. A deadline draws the line between a mere dream to a committed plan. I’ll share mine in my future posts – My 33 Year-Old Challenge! 
PS4: What happens after achieving your second goal of a comfortable life? Here's the third more fulfilling challenge you can give to yourself - be rich and affluent. Why stop being comfortable? Why not help others and bless them with your wealth? Why stop the flow of abundance in your life? Why not help them attain the same thing through your service so that there'll be more blessors on this planet? It’s the ripple effect. That’s a perfect goal since having that money freedom removes all the pressures that can possibly hamper you in your ultimate mission. You are free to risk. You have all the means in expanding your sense of who you really are. When this happens, imagine the tremendous difference you can make. Imagine the better world the next generation would have because of you. Now that's the real wealth - it's yourself.

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Bo Sanchez' Truly Rich Club Stocks Update

Just a sweet short note for you this Sunday morning!
Here’s the latest update of Bo Sanchez’ Truly Rich Club regarding investments in the Philippine Stock Market.
As you probably know, the club gives regular stock update to help its members in taking charge of their investments in the Philippine Stock Market. (Aside of course from its empowering Wealth Strategies, ebooks and a whole lot more of financial materials!)
Read on!

PS: Membership is now open to our newest facebook group – Investing in the PhilippinesStock  Market – Tips and Tricks. Join now and get exclusive access to tools and resources for your investing career! It's our private vault of financial ebooks and mp3 files! Join here!

It’s Up To Me

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PS: Why this poem? Because we need to remind ourselves that we have the power to create the future we want! Focus on that! Have a recharged morning! 

PS2: Your success and happiness are up to you. Really.

Investing in the Philippine Stock Market – Quote for the week

With the Philippine Stock market in its red phase now, let's in the meantime turn our attention to a reminder quote for the week.

Got this one from Robert Kiyosaki FB status update:

Money only magnifies who you really are. If you are a happy person, more money will make you happier. If you are unhappy person, more money will make you miserable.

Have fun investing (with who you really are)!

PS: Membership is now open to our newest facebook group – Investing in the PhilippinesStock  Market – Tips and Tricks. Join now and get exclusive access to tools and resources for your investing career! Join here!

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Gus Cosio Says So - What to do now as investor in the Philippine Stock Market

Gus Cosio Says So - What to do now as investor in the Philippine Stock Market

Hello investors in the Philippine Stock Market!

It’s been almost half a year this 2012!  This is a perfect time in assessing our present performance in the Philippine Stock market.

How are you doing in your doing in your investments?

Did the Philippine stock market become friendly enough to you?

What are your investment lessons you had in this first half of the year?

And what are your plans in coming next half-year?

In case you’re finding yourself wandering now and not sure what to do in the current condition of the Philippine Stock Market, here’s some encouraging words from our kind friend Gus Cosio, one of the most respected fund manager in the Philippines:

It's amazing that so many people are interested in getting to understand financial markets. I gave a talk this evening to Metrobank/First Metro investors and clients about financial markets outlook. Generally, I imparted my view that this country is in a bull phase that will likely run for three more years. Inflation will be stable, GDP will see sustained growth, the PHP will tend to strengthen and the fiscal position of the government will be more manageable. Having said this, any weakness in stock prices should be temporary and a buying opportunity for most stocks.

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That’s it!

Just making sure you’re still in your sense and ready in this exciting phase of the Philippine stock market!

Don’t be disappointed if ever you have not so good returns so far. For sure, your harvest time will come if you’ll just be faithful at this planting time!

Enjoy Monday! Enjoy the rest of the week!

Have fun investing (and reaping in the future)!

PS: Membership is now open to our newest facebook group – Investing in the PhilippinesStock  Market – Tips and Tricks. Join now and get exclusive access to tools and resources for your investing career! Join here!

Free Downloads for Beginners Investing in the Philippine Stock Market

Free Downloads for Beginners Investing in the Philippine Stock Market


Hi (future) millionaire,
I just actually came from a very mini-concert to which I was invited with some chit-chats after with two college friends this very early morning; and thought of dropping you a brief  note.
Yes, am writing this post with no sleep yet.
But before I go to my bed, just want to ask your help in spreading the value of financial literacy in our country.

In the aspect of investing in the Philippine stock market, I believe the book of our dear friend Bo Sanchez My Maid Invests in the Stock Market… and Why You Should, Too! Is the best way to introduce the world of stocks investing to them.

If you have the same eagerness to help others achieve their financial freedom through the Philippine stock market, then just share this blog with them.
Feel free to share also the book which can be found here.
In case they see the great potential of investing in the stock market, then also share this stocks investing book for beginners with them.

That’s it, just a sweet request! For your friends and loved ones!
Good night  morning!

PS: Just a short segway, right now I’m still amazed on how vibrant our present youth and young professionals are in the mini-concert I attended. That was my first time to attend such an event and  I saw many people in the room, some my age  and older, who, I think, are really desperate in identifying themselves and looking for something they can associate themselves with.
Why did I say desperate? Because I witnessed personally their perseverance while waiting hours in that small confined room just to hear their favorite band in less than half an hour! Everyone’s sweat glands were tested as the whole crowd tried to fit itself in that tiny café-bar totally making the room like a sauna cubicle. I suppose they wouldn’t like that kind of set-up if not for their desire to see personally their favorite band. Talk about passion?!

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How to make over-the-counter deposit to fund COL trading account

How to make over-the-counter deposit to fund COL trading account
Here’s another question from a reader about funding your COL trading account via over-the-counter deposit in a bank.

good evening sir...i would like to ask if i need to open an account with metrobank if i intend to enroll in col's EIP through over the counter payment...because the only available bank in our locality is metrobank...i would like to be clarified regarding the process of funding my col account through metrobank's over the counter payment and can i ask the corresponding charges the bank applies..thank you

Here’s the reply
The answer is No.
Just use their bills payment deposit slip and follow the instructions as stated in COL's website. There should be no charges to apply.
Whatever amount you deposit will be fully reflected in your portfolio balance. :)

***

To make life better for you, things will be a lot more convenient if you have your own Metrobank account and enroll it in their online banking. In a matter of clicks, you can fund your COL trading account very easily.
No deposit slip, no writing, no effort to go to a bank, and fall in line for your turn. Time is important than money, right?!

Have fun and millions investing (conveniently)!

PS: For beginners, download My Maid Invests in the Stock Market Market… And Why You Should, Too – Free Download

PS2: Have your other questions? Get them answered here
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What is EIP and uncommitted shares column in Citiseconline (COL)

What is EIP and uncommitted shares column in Citiseconline (COL)

Here’s a feedback question from one of our readers regarding Easy Investment Program (EIP) investing strategy of Citiseconline.

***

Hi sir!

Kumusta?

I have been following you thru your FB page since few months back.
I would like to personally thank you for unselfishly sharing Your knowledge about the stock market. Malaking tulong po lalo na sa beginners like us.
I am actually a member of truly rich club also :) and have started investing in the stock market last may2011. :)
May question lang po ako, baka masagot nyo ako about column ng EIP SHARES and Uncommited shares.
Initially EIP talaga ung mode of investment namin, but since member kami ni mister ng TRC ni Bo S, may times na bibili kami ng stock kahit hindi pa schedule ng monthly EIP namin,
Napansin ko na may option to CLICK "EIP" dun sa terms, pero minsan nakakalimutan namin i-click, kaya napansin ko hindi malalagay sa EIP SHARES yung mga binili namin,
Tanong ko lang if ok lng ba yun? Kahit wala sila dun sa EIP Column?
Ano ibig sabihin ng uncommitted shares?
Salamat in advance. GODBLESS

Here’s the reply:

Hi,
even if di sya napunta sa EIP column, it should be the same so no problem with that.
treat EIP as more of a label lang to help you track your EIP strategy, because you can actually see how your average cost moves with this strategy.
but with or without it, the value of your total portfolio is not affected by this labelling.
Secondly, uncommitted shares simply means number of shares na hindi mo binebenta (meaning walang pending sell order sa kanya)
so for example may total 1000 shares ka, then nag put ka ng isang sell order with this stock na 300 shares, then that 300 is considered committed.
the remaining 700 is uncommitted.:)
hope this helps.

thanks for your kind words!
may the good Lord and God bless you more!

***

Have fun and millions investing!

PS: For beginners, you can take advantage of this webinar (a recorded seminar in the web) by COL Financial giving you an introduction into the stock market, some info about COL Financial stockbroker company and a highlight of Peso-Cost Averaging in which EIP rests. Grab it now!

PS2: For constant real-time updates, like us in Facebook and follow us in Twitter!

PS3: If you have other questions or concerns you want to get answered, you can send them here.

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How to open an online stock trading account in Citiseconline (COL Financial)

Opening an online stock trading account in Citiseconline is very simple and as easy as opening a regular bank account.

I emailed COL personally to check how to do that, and below is the detailed response showing the steps in opening an online stock trading account if you choose COL as your stockbroker.
If you’re really just a beginner in the Philippine Stock Market, and want be an investor with COL as you’re chosen partner, then just read below and you’ll learn a lot on what an online stock trading account can do to you as an aspiring investor in the Philippine Stock Market. It will also guide you on the step-by-step procedure of opening an online trading account with them and some next actions you can do as a new investor.

You’ll also find in the end a link to the webinar (seminar in the web) that may help you understand more on the COL Financial company, some introduction to Philippine Stock Market, and a highlight of Peso-Cost Averaging strategy.

Grab now and share to your friends!
Have fun investing!

PS: For constant real-time updates, like us in Facebook and follow us in Twitter!

***
Good Day!

Thank you very much for your interest in COL services.

To give you a brief background, online trading can give you the convenience of accessing your account through the internet wherever and whenever you want. It affords investors like you a level of independence and control not previously experienced through traditional or offline trading. You can pick and choose stocks online that meet your personal financial goals. You can buy and sell your stocks, access your financial portfolio, and read recommendations on which is good (or not) to buy all at the touch of a mouse.

As a COL customer, you will be able to benefit more from every trade with access to our superior online tools and functionalities with the lowest allowable commission rate in the industry at only 0.25% of the transaction value. We offer a host of online trading and information services, among which are:
· Automated order placement and execution via the internet
· Access to live quotes and other market statistics
· Online portfolio tracker
· Research materials and market commentaries
· Price charting program and Ticker system display
· The Virtual Tycoon - a simulated stock trading environment

On top of that, you can get customer support by calling 6-515-888 or writing to helpdesk@colfinancial.com. And in cases wherein you have no access to the computer/internet, you may ask us to place an order for you. Please note however that broker-assisted calls are charged 0.5% for commission and not 0.25%. Other charges will remain the same.

Regarding your inquiry, here are the requirements needed to open an account and if you feel like you are ready to start your investment plans, all you have to do is open an account with us in just 3 simple steps:

STEP	ACTIONS	DETAILS
1	Fill out the necessary forms and submit it to CitisecOnline business center.	· Customer Account Information Form (CAIF) · Online Securities Trading Agreement (OSTA) · Signature Cards (2)
2	Submit a photocopy of (1) valid ID issued by the Philippine Government	Any of these : (kindly sign twice the clear copy) · Driver’s License  · PRC ID · Passport with signature portion  · Postal ID · SSS ID · Voter's ID · Company Id with Birth Certificate
*	For non-appearance:  * Proof billing under your  name or parents name would be needed (APRIL/MAY Bill) (Note: Address on the Signature Cards, OSTA and presented bill should be consist)	Any of these: ( LATEST BILL ) · Utility Bill · Credit Card bill · Bank Statement
3	Fund your account Minimum of P5,000 for EIP Minimum of P25,000 for Regular	Funding Options · Online Banking via Merchant Payment a. Banco de Oro – www.mybdo.com.ph b. Bank of the Philippine Islands –www.bpiexpressonline.com c. Metrobank – www.metrobankdirect.com · Over-the-Counter via Merchant Payment a. Banco de Oro b. Bank of the Philippine Islands c. Metrobank

*For more details regarding the funding options – visit our online FAQs at (www.citiseconline.com) or email us so that we guide you through this process.

For the submission of the application form, it is a mandate from SEC that all forms must be original and signed.

Requirements such as the billing statements can be scanned sent via email however for application forms, they are treated as contracts between the investor and the stockbrokerage firm therefore we would really need the signed hard copy. The good thing is that this is a one-time procedure for account opening, the rest of your transactions can be online or via banks for your deposits.

Our office address is:

C/O Sheryll Zulueta

COL FINANCIAL GROUP, Inc.

2403-B East Tower Phil. Stock Exchange Center

Ortigas Center, Pasig City

To open an Easy Investment Program account the minimum initial deposit is P5, 000 and a Regular account has a minimum of P25, 000. There is no transaction fee in opening an account. 100% of your deposits will be credited to your account for your investments.

If you want to learn more,  here's the link to the online web seminar "BASIC STOCK MARKET INVESTING WITH THE COL EASY INVESTMENT PROGRAM".

A soft launch of the first COL online investment seminar that includes the following topics:
- Finding Your Financial Goal
- The Value of Savings
- Introduction to Investing
- What is the Stock Market
- The Investment Method of Peso Cost Averaging
- CitisecOnline and the COL Easy Investment Program

This is the link:
http://www.citiseconline.com.ph/webseminar/
To help you get started with COL EIP, please visit the link: http://www.youtube.com/user/COLCitisecOnline for the COL EIP virtual walkthrough.

You may also check our FAQs section under HOME>FAQs>COL Easy Investment Program FAQs for more details on EIP.
Here is our link on youtube on how to buy and sell online.  
I look forward to hearing from you.
 For any questions that you may have, you can email me anytime, I will be more than happy to assist you. 
Thank you and have a great day!
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How to start investing in the Philippine Stock Market

How to start investing in the Philippine Stock Market

How do you start investing in the Philippine Stock Market?
Here’s a nice yet challenging quote from one of the best inspirational speakers of the world:
"It's best to start the discipline of generosity when the amounts are small. It's easy to give ten cents out of a dollar; it's a little harder to give a hundred thousand out of a million." -- Jim Rohn
The quote simply highlights the importance of starting even if you only have small amount of money.
Do you want to give?
Then you’ve got to start now. Don’t wait before you have something big to give. Because from experience, it won’t happen. Or at least it will be a lot more difficult by then.
Those little sessions of giving will train and shape you to solidify your desired habit of giving, until it becomes automatic of you to give more.

If you look closely, the same discipline applies to investing.
It’s a common scene where one person remains stuck and never starts investing citing the small income he currently has.
What they don’t realize is that every day they acknowledge this thinking is a day that the stock market is working in growing the finances of some lower-earner people. (Download here: My Maid Invests in the Stock Market.)
Don’t have enough 5k to start investing?
You can open your online trading account without any down payment – read here to find out how.
If you really want to be financially free, then do start.
If you want to work for money forever, then ignore this.
Change your thinking, and then you’ll change your life! J
Have fun investing (now!).
PS: So how do you start investing in the Philippine Stock Market? There's no shortcut. Simply start!
PS2: You really really want to start but need to clear some questions first? Then email them to pinoyinvesting@gmail.com. Just so you can begin your steps to financial freedom!
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Secrets Revealed - How to Retire Rich

Hi future millionaire!

Another inspiring article from our friend Bo Sanchez, this time answering common questions regarding the Money Cost Averaging strategy.

Take note though that TrulyRichClub currently employs what it calls SAM – short for Strategic Averaging Method – which can actually be more rewarding than Money Cost Averaging technique.

We’ll take a closer look on that SAM in our future blog, and see how a very minor deviation from the Money Cost Averaging technique can largely multiply your profits.

In the meantime, enjoy this article!

Have fun investing! (With a simple strategy)

If There’s A Perfect Time To Start Investing In The Stock Market, It Would Be Now… (by Bo Sanchez)

Just sharing again another article of Bo Sanchez, but this time an invitation to anyone who’s still stuck and oblivious of the Philippine Stock Market.

I actually envy people just starting now and planning to become stock investors.

For sure the next months or so will be a great welcoming for them by the stock investing world!

But don’t worry, I’m starting to get used to this feeling too. HAHA.

Share to your friends!

Have fun investing (in this perfect time)!

***

If There’s A Perfect Time To Start Investing In The Stock Market,

It Would Be Now

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How to be a billionaire (by Bo Sanchez)

Just sharing today an inspiring article of Bo Sanchez – How to Be a Billionaire! This is actually the last chapter of his another finance book "How to Prosper".

Enjoy and keep investing!

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PS. Avoid Confusion. Get guidance. Join myTrulyRichClub. Every month, receive myWealthStrategies Newsletter, my PowerTalks, my Stocks Update every month. Immediately, you’ll also receive my Ebook, My Maid Invests In The Stock Market… And Why You Should Too! To join, log on at TrulyRichClub now!

Stock Computation Tool - for Philippine Stock Market Investors

STOCK COMPUTATION TOOL FOR PHILIPPINE STOCK MARKET

Get this MS-Excel-based stock computation tool you can use to calculate for the exact costs of your buy and sell transactions and to project your potential earnings with your set target prices. 

Download it now! Click here.

Philippine Stock Market Investing Quote for the day - Pay Yourself First

"A part of all you earn is yours to keep. It should be not less than a tenth no matter how little you earn. It can be as much as you can afford. Pay yourself first...

Wealth, like a tree grows from a tiny seed...the sooner you plant that seed, the sooner the tree shall grow...the more faithfully you nourish and water that tree...the sooner you may bask in contentment beneath its shade"

 -George S. Clason, from the book The Richest Man In Babylon

 

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Posted via email from pinoyinvesting's Space

What happens to stocks’ price in the Philippine Stock Market on their ex-date?

Capital appreciation is the common way of making money in stocks investing. This should be obvious given the fact that stocks continuously change its price every single day, which means more opportunities out of it.

But receiving dividends can also be a thrilling experience for new investors.
In fact, when I just started, I remember giant companies giving me few bucks as dividends. While they were pretty small amounts (less than a hundred pesos), at least they’re all aware that I’m one of their part-owners HAHA.

But as my positions become bigger, I started welcoming dividends from several hundreds to few thousands. Oftentimes, I got surprised once I noticed that my cash available has increased in value because of this addition. And I really like that idea of money coming to you in unexpected ways. 

For some investors, dividend is one of their main considerations when choosing what companies to buy. This type of investors who look at dividends as regular income are specifically called income investors. They are contrasted to growth investors who are primarily after fast-growing companies that prefer to re-invest their earnings rather than sharing it with all the stakeholders as dividends. These growth-investors are then those who are after capital appreciation as preferred way of growing their money in the stock market.

But do you know that there are several implications when receiving dividends from your company in the Philippine Stock Exchange? 

Below is a crucial one taken from Investopedia.com regarding what happens to the price of a stock on its ex-dividend date.

Price Implications
When a dividend is paid, several things can happen. The first of these is what happens to the price of the security and various items tied to it. On the ex-dividend date, the stock price is adjusted downward by the amount of the dividend by the exchange on which the stock trades. For most dividends this is usually not observed amidst the up and down movement of a normal day's trading. However, this becomes easily apparent on the ex-dividend dates for larger dividends, such as the $3 payment made by Microsoft in the fall of 2004, which caused shares to fall from $29.97 to $27.34.
The reason for the adjustment is that the amount paid out in dividends no longer belongs to the company and this is reflected by a reduction in the company's market cap. Instead, it belongs to the individual shareholders. For those purchasing shares after the ex-dividend date, they no longer have a claim to the dividend, so the exchange adjusts the price downward to reflect this fact.

So for stock dividends, you can calculate the opening price of these companies giving these dividends when the ex-dividend date comes.
To get what a stock price will be on ex-date, you can use this formula:
Stocks’ opening price on ex-date = (Closing price day before ex)/(1+stock div rate).
Thus, for a 50% dividend, stock price will be adjusted to 67% of the price before ex-date.
Your total number of shares on the other hand will then be
Total Number of shares after dividend = Original Number of shares x (1+stock div rate).
Thus a stock dividend will automatically result in a lower price on ex-date.
And in the Philippine stock market, this is adjusted by the Philippine Stock Exchange.
So stop getting shock now if you see stocks’ price went down on their ex-date. It’s a normal consequence of the dividend-giving process.

Have fun investing (and receiving dividends)!