Value what is it?

 source: http://www.makemoneyonlineafast.com

I was reading Bo Sanchez's blog post and a line struck me. 

Here’s the equation: Problems create scarcity. And scarcity creates value. And value creates success.

 (to read Bo Sanchez's blog post click here)

Let's put that in logical argument:

Problem created Scarcity

Scarcity creates Value

Value creates Success

Therefore : Problem creates Success

Now there is one truth we can pull out from this logical argument, that is Scarcity creates Value. This line is actually what the Law of Supply and Demand teaches.

If you remember: if supply of a commodity is low demand for it rises, when demand for it rises people are willing to buy it at even higher price thus there is a need to raise its price to control such scarce commodity. It is also applicable to thew stock market.

When a certain stock has started to pick up volume after some favorable report or occurrence  the price will start to go upward as indicated in the MACD graph. Such reports like a higher reported quarterly bottom line than expected, a new investor putting in needed capital to enhance or expand the business, or probably a sudden favorable business opportunity that puts the company in a position to profit big can affect investor and speculator perception alike.

When everyone wanted that stock it starts to be scarce. Those who has it already will hold it until it reaches their target price before releasing. Big players will buy in blocks thus limiting the number of shares available. As this happens price action starts to go north and small players try to ride it leading to price trend upward.

source: http://www.clickjobs.com

When a commodity becomes scarce its value rises that is how many investors pocket big gains. Wise investors starts to accumulate stocks of value when they are not yet scarce meaning they are not yet in demand. They keep on accumulating and they are even happy when the price of the stock they are accumulating still goes down. But remember they don't just buy a stock, they have carefully analyze it and base on some analysis they believed that it will grow in the near future. They accumulate stocks with great potential thus they are unafraid to accumulate such stock.

source: http://radocracy.com

The Philippine stock market is now on the expected correction, this is one of the best time to accumulate fundamentally sound companies. So do your due diligence and don't wait for the time that the stock you want to accumulate becomes scarce. 

SCARCITY CREATES VALUE  

Value then is define as a status when it is in demand and when it is limited. That is why gold is valuable because we have to dig deep to get it. That is why experts charge us hefty fees for their advice and services. Valuable stocks are themselves valuable because everybody wants it and are willing to pay the price.

Zombieland attitude in investing

Have you ever seen the movie Zombieland? 

Just watched it in my laptop awhile ago and it made me laugh. But along the movie if you were still able to catch it while laughing and freaking out at the same time on the chasing zombies I think you have the investor attitude.

Remember the rules? 

source: http://rasjacobson.wordpress.com/

Yup Ohio has a list of rules. Rule 1 and 2 are always mentioned. Rule 1 is Cardio while rule 2 is Double tap. How are they connected to investing you ask? Cardio means having the stamina to continuously run. In the world of investing you can't stop. You have to be on your toes because everybody is running thus you need a good cardio to last it. 

Double tap means being sure. Don't just check it once, check it twice or even thrice as long as you are sure of your buys or sell decisions.

How about rule 22: When in doubt, know your way out. 

 source: http://artzthings.com

In technical lingo set your cut loss price. Often times we are trapped in our wrong buys  and hard headed as we are we keep on holding that is why one should have an exit plan. A stock's price may be down but according to your analysis it would bounce back but for how long will it stay there? That is where you have to set that line called "cut loss" so that instead of losing you can divert your funds  to a better stock and then go back if the situation is already trending up to your expectations.

source: http://www.polyvore.com

Also in stock investing you must always "Limber up" that is rule number 18. You might need to make some small stretching to tackle the task at hand. Planning when to enter and exit and making necessary other action plans to pursue your target price. You could test it first by buying small shares then jumping into another similar shares before you finally do what you have been cooking up in your brain.

And lastly the best of the rules, rule number 32: Enjoy the little things. 

source: http://stores.ebay.com/tshirtbordello

Investing can be so exciting and sometimes so depressing. To keep you sane celebrate in the most simplest way to give yourself that feel good experience like eating a twinkie.

 

 source: http://iareawesomeness.wordpress.com

As my stock investor friends will say "pa-cheese burger ka naman" (treat as with cheese burger). Be happy and be victorious with the small things like a gallon of Selecta ice cream Ube flavor(Purple Yam my favorite) for  your family, a pizza with your friends, or a movie date with your special someone. 

So keep your eye open and be alert for you don't know when will a zombie in the backseat attacked you, this is rule number 31 which only means be ready for the least expected.

My Personal Analysis: AboitizPower Corporation(AP)

  source: http://www.aboitizpower.com

AboitizPower is mainly a hydroelectric power generating company. Its subsidiaries comprise mostly of power distributors in the Visayas and Mindanao region and  hydroelectric plants in the Northern Luzon area.

Below is AboitizPower's structure:

The Aboitiz group are the major stakeholder.

AboitizPower's price growth has been phenomenal starting at around 4 pesos in January 2009 and closing at the 30 pesos level to date.

AboitizPower has allotted around 49 billion pesos for 2011 CAPEX(Capital Expenditure) for the Subic and Davao coal fired plants. (to read more on this click here)

Fundamentally AboitizPower , just like other utility corporation,  is banking on CAPEX to be able to generate revenues thus a big portion of funding comes from borrowing. Having a Current ratio of 2.58 which is very ok but with a Debt-to-Equity ratio of around 1.33 due to massive borrowing for expansion and rehabilitation projects of which the benefit will be realize in the next 2-5 years. A notable increase of revenue from power generation was the noted in 2010 as compared to 2009(source AP FY2010 Financial and Operating Performance)

In my opinion AboitizPower(AP) is good stock and a must buy while it is at a low level. Though when one looks at the 10 yr range it seems that its growth slowed down in mid-2010 to 2011 after almost 2 years of growth.

  

On a year range Stochastic indicate a sudden rise and could possibly indicate an overbought level.  Thus a good time to buy since price might go down in the next couple of weeks.

My Personal Analysis: AboitizPower Corporation(AP)

  source: http://www.aboitizpower.com

AboitizPower is mainly a hydroelectric power generating company. Its subsidiaries comprise mostly of power distributors in the Visayas and Mindanao region and  hydroelectric plants in the Northern Luzon area.

Below is AboitizPower's structure:

The Aboitiz group are the major stakeholder.

AboitizPower's price growth has been phenomenal starting at around 4 pesos in January 2009 and closing at the 30 pesos level to date.

AboitizPower has allotted around 49 billion pesos for 2011 CAPEX(Capital Expenditure) for the Subic and Davao coal fired plants. (to read more on this click here)

Fundamentally AboitizPower , just like other utility corporation,  is banking on CAPEX to be able to generate revenues thus a big portion of funding comes from borrowing. Having a Current ratio of 2.58 which is very ok but with a Debt-to-Equity ratio of around 1.33 due to massive borrowing for expansion and rehabilitation projects of which the benefit will be realize in the next 2-5 years. A notable increase of revenue from power generation was the noted in 2010 as compared to 2009(source AP FY2010 Financial and Operating Performance)

In my opinion AboitizPower(AP) is good stock and a must buy while it is at a low level. Though when one looks at the 10 yr range it seems that its growth slowed down in mid-2010 to 2011 after almost 2 years of growth.

  

On a year range Stochastic indicate a sudden rise and could possibly indicate an overbought level.  Thus a good time to buy since price might go down in the next couple of weeks.

Using Bloomberg.com for your stock charts and info need

Just discovered this lately. We can use www.bloomberg.com to check on PSE listed stock.

Juts like Reuters.com it has some information a stock investor like you and me need in deciding which stocks to buy. 

Go to www.bloomberg.com and in the search button type in the stock code of the company you are interested in and add a colon followed by pm

 

 source: www.bloomberg.com

You can customized the chart by adding overlays and indicators like MACD, Stochastic, Relative Strength Index(RSI) and compare such stock to other stock of interest or stock of same industry by adding the stock code plus :PM in the add bar in the stock chart section.

Using Bloomberg.com for your stock charts and info need

Just discovered this lately. We can use www.bloomberg.com to check on PSE listed stock.

Juts like Reuters.com it has some information a stock investor like you and me need in deciding which stocks to buy. 

Go to www.bloomberg.com and in the search button type in the stock code of the company you are interested in and add a colon followed by pm

 

 source: www.bloomberg.com

You can customized the chart by adding overlays and indicators like MACD, Stochastic, Relative Strength Index(RSI) and compare such stock to other stock of interest or stock of same industry by adding the stock code plus :PM in the add bar in the stock chart section.

Going Fundamental: Common Size Ratio Analysis

I'm back! Sorry for the long absence. I have just made the greatest investment in my life, finding the one.

So lets go back then where we were. If ever you are in a seminar about stock investing they could probably discuss some accounting stuff like the one above.

Common Size Ratio analysis is basically comparing one company to another by the percentages. The basic comparison will be the FS analysis express in ratios. This analysis primarily focuses on the Profit and Loss statement or also known as Income or Loss Statement.

For example Company A and B using basic data.

Looking at the two company only at the amounts one can say that Company A is better due to its higher sales but looking at percentages we now see the difference of the the two company. Company B is better than Company A in terms mark up and management of expenses thus though Company A and B ended up with the same profit Company B shows a better management of cost and better pricing or market penetration.  

Going Fundamental: Common Size Ratio Analysis

I'm back! Sorry for the long absence. I have just made the greatest investment in my life, finding the one.

So lets go back then where we were. If ever you are in a seminar about stock investing they could probably discuss some accounting stuff like the one above.

Common Size Ratio analysis is basically comparing one company to another by the percentages. The basic comparison will be the FS analysis express in ratios. This analysis primarily focuses on the Profit and Loss statement or also known as Income or Loss Statement.

For example Company A and B using basic data.

Looking at the two company only at the amounts one can say that Company A is better due to its higher sales but looking at percentages we now see the difference of the the two company. Company B is better than Company A in terms mark up and management of expenses thus though Company A and B ended up with the same profit Company B shows a better management of cost and better pricing or market penetration.  

Stock market news: IP CONVERGE DATA CENTER, INC.IPO

I got this message  again from my COL account 

Offer Price: P4.20/ share

Minimum Subscription: 1000 shares and thereafter, in multiples of 1000 shares

Offer Period: November 25 to November 30, 2010 - 12:00 Noon

 

COL End of Offer and Payment: November 30, 2010 

12:00 Noon

Tentative Listing Date: December 9, 2010 

Payment Terms: 100% due upon subscription not later

than November 30, 2010 12:00 Noon

INITIAL PUBLIC OFFERING FOR IP CONVERGE DATA 

CENTER, INC.

Please be informed that the Board of Directors of The Philippine Stock Exchange, Inc. approved on October 20, 2010, the application of IP CONVERGE DATA CENTER, INC. (CLOUD or the Company) for the initial listing of 181,866,669 common shares, with a par value of P1.00 per share under the Second Board of the Exchange consisting of the following:

a.136,400,002 common shares, representing the issued and outstanding shares of the Company prior to the Initial Public Offering (IPO) of the Companys shares; and
b.45,466,667 common shares, representing the common shares to be offered to the public on a primary basis.

THE OFFER

Offer Price : Php4.20 per share

Minimum   : 1000 shares, and thereafter in multiples of 

                     1000 shares

COL Offer Period : November 25 to November 30, 2010 

                 12:00 Noon

COL End of Offer and Payment   : November 30, 2010 

                 12:00 Noon

Tentative Listing Date  : December 9, 2010

Payment Terms  : Full payment on or before November

                 30, 2010

Important:

Due to the limited number of shares available,

subscriptions are not guaranteed which may force us 

to raffle minimum lots. We encourage clients to 

subscribe through the Local Small Investors (LSI)

Program, for details, click here.

For interested subscribers, please subscribe online by 

clicking here. Deadline for subscription requests and 

payment is on November 30, 2010 12:00 Noon.

NOTE: COL shall not process subscription requests for

accounts that fail to provide adequate funding given the

deadline of the payment on November 30, 2010.

Please be guided accordingly.

CitisecOnline Helpdesk

 
helpdesk@citiseconline.com

Stock market news: IP CONVERGE DATA CENTER, INC.IPO

I got this message  again from my COL account 

Offer Price: P4.20/ share

Minimum Subscription: 1000 shares and thereafter, in multiples of 1000 shares

Offer Period: November 25 to November 30, 2010 - 12:00 Noon

 

COL End of Offer and Payment: November 30, 2010 

12:00 Noon

Tentative Listing Date: December 9, 2010 

Payment Terms: 100% due upon subscription not later

than November 30, 2010 12:00 Noon

INITIAL PUBLIC OFFERING FOR IP CONVERGE DATA 

CENTER, INC.

Please be informed that the Board of Directors of The Philippine Stock Exchange, Inc. approved on October 20, 2010, the application of IP CONVERGE DATA CENTER, INC. (CLOUD or the Company) for the initial listing of 181,866,669 common shares, with a par value of P1.00 per share under the Second Board of the Exchange consisting of the following:

a.136,400,002 common shares, representing the issued and outstanding shares of the Company prior to the Initial Public Offering (IPO) of the Companys shares; and
b.45,466,667 common shares, representing the common shares to be offered to the public on a primary basis.

THE OFFER

Offer Price : Php4.20 per share

Minimum   : 1000 shares, and thereafter in multiples of 

                     1000 shares

COL Offer Period : November 25 to November 30, 2010 

                 12:00 Noon

COL End of Offer and Payment   : November 30, 2010 

                 12:00 Noon

Tentative Listing Date  : December 9, 2010

Payment Terms  : Full payment on or before November

                 30, 2010

Important:

Due to the limited number of shares available,

subscriptions are not guaranteed which may force us 

to raffle minimum lots. We encourage clients to 

subscribe through the Local Small Investors (LSI)

Program, for details, click here.

For interested subscribers, please subscribe online by 

clicking here. Deadline for subscription requests and 

payment is on November 30, 2010 12:00 Noon.

NOTE: COL shall not process subscription requests for

accounts that fail to provide adequate funding given the

deadline of the payment on November 30, 2010.

Please be guided accordingly.

CitisecOnline Helpdesk

 
helpdesk@citiseconline.com

Stock market news: NAC(Nickel Asia Corp.) IPO

Got this message from my COL account regarding the anticipated IPO of Nickel Asia Corp.

NICKEL ASIA CORPORATION IPO

Offer Price: P15.00 / share

Minimum Subscription: 1000 shares and thereafter, in multiples of 100 shares

Offer Period: November 8 to November 11, 2010 12:00 Noon

COL End of Offer and Payment: November 11, 2010 12:00 Noon

Tentative Listing Date: November 22, 2010 

Payment Terms: 100% due upon subscription not later than November 11, 2010 12:00 Noon

INITIAL PUBLIC OFFERING FOR NICKEL ASIA CORPORATION

Please be informed that the Board of Directors of The Philippine Stock Exchange, Inc. approved on October 20, 2010, the application of NICKEL ASIA CORPORATION (NIKL or the Company) for the initial listing of up to 1,339,831,828 common shares, with a par value of P0.50 per share, under the First Board of the Exchange consisting of the following:

a.989,656,828 common shares, representing the total 

number of issued and outstanding shares of the 

Company prior to the Initial Public Offering (IPO) of the 

Companys shares;


b.Up to 304,500,000 common shares, representing the 

total number of shares, inclusive of 132,991,828 

common shares held in treasury, to be offered to the 

public on a primary basis; and 


c.Up to 45,675,000 common shares, representing the 

Over-Allotment Option in connection with the

companys IPO.

THE OFFER

Offer Price              : Php15.00 per share
 
Minimum                : 1000 shares, and thereafter in 

                                  multiples of 100 shares
 
COL Offer Period    : November 8 to November 11, 2010

                                 12:00 Noon
 
COL End of Offer and Payment   : November 11, 2010

                                                       12:00 Noon
 
Tentative Listing Date   : November 22, 2010
 
Payment Terms             : Full payment on or before 

                                       November 11, 2010

Important:

For interested subscribers, please subscribe online on 

November 8, 2010 by clicking on the Nickel Asia 

Corporation Initial Public Offering (IPO) banner located

at the top and bottom of this page. Deadline for 

subscription requests and payment is on November 11,

2010 12:00 Noon.

NOTE: COL shall not process subscription requests for 

accounts that fail to provide adequate funding given 

the deadline of the payment on November 11, 2010.

Please be guided accordingly.

CitisecOnline Helpdesk
 
helpdesk@citiseconline.com

Stock market news: NAC(Nickel Asia Corp.) IPO

Got this message from my COL account regarding the anticipated IPO of Nickel Asia Corp.

NICKEL ASIA CORPORATION IPO

Offer Price: P15.00 / share

Minimum Subscription: 1000 shares and thereafter, in multiples of 100 shares

Offer Period: November 8 to November 11, 2010 12:00 Noon

COL End of Offer and Payment: November 11, 2010 12:00 Noon

Tentative Listing Date: November 22, 2010 

Payment Terms: 100% due upon subscription not later than November 11, 2010 12:00 Noon

INITIAL PUBLIC OFFERING FOR NICKEL ASIA CORPORATION

Please be informed that the Board of Directors of The Philippine Stock Exchange, Inc. approved on October 20, 2010, the application of NICKEL ASIA CORPORATION (NIKL or the Company) for the initial listing of up to 1,339,831,828 common shares, with a par value of P0.50 per share, under the First Board of the Exchange consisting of the following:

a.989,656,828 common shares, representing the total 

number of issued and outstanding shares of the 

Company prior to the Initial Public Offering (IPO) of the 

Companys shares;


b.Up to 304,500,000 common shares, representing the 

total number of shares, inclusive of 132,991,828 

common shares held in treasury, to be offered to the 

public on a primary basis; and 


c.Up to 45,675,000 common shares, representing the 

Over-Allotment Option in connection with the

companys IPO.

THE OFFER

Offer Price              : Php15.00 per share
 
Minimum                : 1000 shares, and thereafter in 

                                  multiples of 100 shares
 
COL Offer Period    : November 8 to November 11, 2010

                                 12:00 Noon
 
COL End of Offer and Payment   : November 11, 2010

                                                       12:00 Noon
 
Tentative Listing Date   : November 22, 2010
 
Payment Terms             : Full payment on or before 

                                       November 11, 2010

Important:

For interested subscribers, please subscribe online on 

November 8, 2010 by clicking on the Nickel Asia 

Corporation Initial Public Offering (IPO) banner located

at the top and bottom of this page. Deadline for 

subscription requests and payment is on November 11,

2010 12:00 Noon.

NOTE: COL shall not process subscription requests for 

accounts that fail to provide adequate funding given 

the deadline of the payment on November 11, 2010.

Please be guided accordingly.

CitisecOnline Helpdesk
 
helpdesk@citiseconline.com

My new segments in my blog: The online stockbrokers that I use

                                source: http://www.yourbrokerguide.com/
If you remember I introduced you to the online stockbrokers... if you haven't read that yet click here.

Okay so let me make some introductions first. One might ask me why online stockbrokers? What are the benefits?

Here are my reasons why I opted for online stockbrokers:

1. Online stockbrokers are cheap. Most only charge a commission of

    0.25% to 0.50% per all transaction. Most have no maintaining
    fee, and only charge a small fee for call trading assistance.

2. Online stockbroker's platform are easily accessible online and 

    they are secure. That is why they have to be accredited by both

    SEC and PSE.

3. Online stockbroker's web page are full of information and guides 

    to help you make that buy or trade

4. And lately after the PSE upgraded most have brought back the

   off-hours facility. No more early morning waking up for our stock 

   investors abroad to place their stock trades

Those are the benefits to name a few.

Now as promise I will be posting a series on how to navigate and use the two online stockbrokers I am currently using. I am using Citiseconline and First Metro Securities Brokerage Corp. to know more about these two click on them to go to their website.

Here is a story on how I ended up with these two online stockbroker.

                                     source: www.citiseconline.com
Citiseconline was the first online stockbroker I applied to. I learned about them through Bo Sanchez's book 8 Secrets of the Truly Rich. Long before I have always wanted to enter the stock market. I remember the days when my professor and dean in PSBA-QC would tell us about his masteral class challenging them to buy stock in the Philippine Stock Market and their grade in his class will be based on the performance of their stock investment. It scared me to take an MBA class because back then I really have no idea even how to buy a stock. Is it done just like going to the "sari sari" store asking the "tindera" to sell you stocks? I know it wasn't.

But in the end while working abroad and after mustering my courage to dive in an unknown territory I checked out Citiseconline's website and tried there 15 day or so free pass which I didn't even use because I really have no idea how to do the action in the stock market.  After nearly 6 months I inquired via email and a reply from Jenny Senining gave me hope of opening an account. I planned and I inquired like a little child so afraid to bring and placed my tiny money in to a strange place called "online stockbroker" but finally when I had a chance to get a vacation from my overseas work I made sure it is my first order in my list. Went Tektite to looked for the Citiseconline office and luckily Ms. Senining was there to assist me and that afternoon I funded my account and got may access after a day..that was late November last year.

And then ecstatic that I was I went to my account check this and that and place my first order. After the day nothing happened. After a week nothing happened. After a month still nothing happen. So I asked myself what's wrong with my bid? Then a new thread in the forum where I accustomed to share my ideas and advices opened. It was about stock investing. And from there on my knowledge grew leaps and bounds due to friends who share the same passion for stock investing. My humble thanks to our OFW friend who started that thread, "maraming salamat rich dad ninong :) "
 
I made my first buy on March 2010 and from their on I have been buying, then waiting till it profits around 5-10% net of cost before selling and sometimes when times are good I profit up to 40%

    source: www.firstmetrosec.com.ph

The reason why I opened another online stockbroker account is funds accessibility.

Being the online brokerage arm of Metrobank fund transfer from your Metrobank account to your First Metro Securities account is a breeze through Metrodirect. I am in the process of familiarizing myself about FMSB's online platform and will soon share here my experience in navigating and making the most of their platform.

Also the well known stock analyst Gus Cosio is in FMSB and his blog is linked to their website. With the latest announcement that FMSB can now accept off-hours trading I guess more and more Pinoys can benefit from it. Also to open an account you just need a minimum of Php 5,000.00, of which Php 2,00.00 is for your maintaining  balance for your Metrobank account and the Php 3,000.00  cash is available for stock investment.