Free PSE seminar: Building Wealth with Stocks

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

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

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

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

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 & 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?

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

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.