A buying opportunity?

After the recent US presidential election surprisingly won by Donald Trump, the Philippine stock market reacted negatively. At the time of this writing, the PSEi index fell below the 7,xxx mark and is now at 6,982.97.

This is because of the concerns how Trump’s policy would affect the Philippine economy specially the BPO sector or the call center industry. Going back in 2013, the revenue from BPO generated about $15.5B and $22B revenues last year (2015) which employed 1.1M Filipinos.

financial-crisisWe can recall in Trump’s presidential campaign that he would bring back jobs to America in the manufacturing side. Although this has nothing to do with the BPO sector, there is a possibility that Trump would also influence Americans not to outsource non-manufacturing jobs in other countries such as the Philippines.

When this happens, it will surely hit our economy since 70-80% of the BPO employers are based in US. Among the publicly-listed companies in the property sector heavily affected are ALI, RLC and MEG.

Analysts believed that this negative market reaction is only short term. According to Bloomberg, the market reaction on US presidential election is not an indication of how the market will perform in the next 12 months.

One reason to consider is the difference between the hourly wage of Americans to Filipinos in the field of BPO. According to Glassdoor, the hourly wage for a Filipino call center agent is around $2 while in the US it’s around $10.5. That is a huge difference which will make them think twice pulling out their businesses.

On the other hand, there are other factors that drive the Philippine economy. That is, the government spending which is eyed by the president (infrastructure, banks & tourism) and investment spending excluding the BPO industry (consumer and power).

As a conclusion, analysts such as COL Financial believes that this is a buying opportunity for us at a cheaper price specially when PSEi falls below 6,700 which they recommend to buy aggressively.  Time to accumulate more stocks!

Let us know your thoughts in the comments section.

Top Stock Picks that will benefit from Duterte administration

COL Financial in its latest issue of COLing the Shots talks about the recently concluded SONA of our president. Based on the article, COL Financial identified all possible sectors that believed will benefit from Duterte administration.

This is very good information specially for those people asking what stocks to buy nowadays that PSEi step up at 8,000.

There were four new stock picks added on the list namely EEI (infrastructure), CEB (tourism), CIC (consumer) and MBT(banking). As of this writing, only EEI, CEB and MBT can be bought among the four.

Fair Values or Target Price of existing stock picks were also adjusted adding more options of companies we can now buy. Personally, I don’t like CEB, perhaps my emotions considering my bad experiences from the past such as delayed flights and poor customer service but this is just my opinion.

Below is the latest COL stock picks that analysts believed to benefit from Duterte administration:

stock picks under duterte administration
stock picks under duterte administration

The complete report can be found by logging in to your COL account, go to Research –> Archive.

Thoughts?  Let us know by posting your comment below.

Is investing in stock market safe?

Before starting out investing in stocks, one big question always asked is “is it safe to invest in stocks?”.  Well the answer is; it depends.  Let’s examine why.

Take note that there is always risk in investing but the good news is that you can manage and minimize risk by doing your homework.  Always remember this: it’s you and only you who are in charge of your money.

The fact is, if you don’t invest, you are already losing the value of your money because of inflation.  As Robert Kiyosaki says “not investing is risky” and “savers are losers”.

There are two major “players” in the stock market. Continue reading “Is investing in stock market safe?”

Introducing the COL Mobile App

This morning I received an email from my stock broker COL Financial informing me that the mobile app is already available but only for IOS. The android version is still to come.

You can download the app by simply logging in to your account using a browser, in my case I used Safari. Click on the Downloads at the Home Page then follow the next instructions and voila, there it is! Continue reading “Introducing the COL Mobile App”

A glimpse of SMPH sale

Last week it was a surprise when one of my blue chip stocks, SMPH enters the “red zone” after a year of sitting in “green”.  Oh yes before I forgot, we already entered the month of AuGHOST.  Many investors and traders believe this to be the month when stock prices are getting cheaper.smph-stocks

Continue reading “A glimpse of SMPH sale”

How to invest in UITF?

More than 3 years ago, I learned how to invest in the stock market. At first, I was hesitant to pour in my money into my broker’s account (COL Financial) to directly invest in stocks. I did it slowly because in my mind it could be a scam and besides I don’t even know somebody who invests in stock market. In short, I was really scared.

Since I’m comfortable with the banks, I decided to move some of my cash and buy UITF. So I told myself “It’s just a test”. Actually I really don’t know UITF back then because I asked the bank’s counter for mutual fund. They told me that banks don’t offer mutual funds but UITFs. By the way, the bank’s representative I asked is from BDO. Continue reading “How to invest in UITF?”

Do You Want to Earn Thru Dividends or Capital Gains

Just want to share you this sample stocks update from Bo Sanchez’ Truly Rich Club. I’m so excited in the power of compounding in the years to come. I remember the day I told one of my relatives about the dividends I received the first time. He was very excited to know and asked me “how much?” and I answered “well “it’s 200 pesos”. He laugh at me and said “are you excited with that amount”.  But that was 4 years ago. Now it multiplied many times because of my habit of investing month after month after month…  Thanks to the Truly Rich Club team for the motivation and encouragement.  You are doing a great job! Continue reading “Do You Want to Earn Thru Dividends or Capital Gains”

Yes, stocks are down again!

Yesterday, stocks fell even lower compared last week with 6.75% loss (442 points) closed at 6,114.08.
I saw this market dip happened two years ago, sometime in September 2011. This is another great opportunity to buy more shares at a cheaper price where everything is on sale for a big discount.
I have tabulated my list of stocks and checked the future growth with reference prices as of closing date yesterday June 13, 2013.  This shows “how far” the current price to the target price of each stock.

my-stock-table

As you can see, BDO is more attractive to buy followed by LRI.

This week I sold my two year old stock, FPH and switch it to TEL and some other portion to BDO and MEG. Good thing is I still earned around 30% on the sale which is pretty good after it reaches below a hundred pesos per share.

As bro Bo says, “This is all TEMPORARY. The important thing is you try to keep buying
during times like these. RED means GREEN!”

Happy investing everyone! Investing is still more fun in the Philippines!

COLing the shots

Just in case you are not aware of this, COL Financial as part of their research product has a regular report called “COLing the shots”.  It is a monthly detailed report covering the insights on investment based on global and local market updates.

This report also gives essential information and analysis which may help us in our decision so that our investments will be a success.  It has a “model portfolio” similar to trulyrichclub’s SAM table which anyone can follow.  Below is the “COLing the shots” table as of August 1, 2015.

coling-the-shots-2015
coling-the-shots-2015

This report is available exclusively for COL account holders and can be found under Research –> Archives.  Click the Product drop-down menu and select Coling_the_shots and click search to list all previous reports.

Enjoy and happy investing!