PHILIPPINE BUSINESS BANK IPO

07 Thursday Feb 2013

Posted by in Stock Market

≈ Leave a Comment

Tags

, , ,

I just want to share you that I have been included in COL Financial raffle for IPO of PBB. I have received the following email today.

Please be informed that we have allocated 500 shares of PHILIPPINE BUSINESS BANK with the amount of PHP 15,750.00. We have debited your account accordingly. Thank you. COL Financial Group Inc.

It feels good to be included from the 151,200 shares that was raffle out from COL..I came to know that there are lots of investor in the Facebook group where I belong that received a regret letter from COL Financial. But for the newbie in stock market, you might be asking on what is IPO? IPO means Initial Public Opening. In the normal scenario, buying IPO stock is always buying bargain stocks, but there are also time that upon completing the IPO, the value of stocks goes down. Take for example on what happen when Facebook have it’s IPO, it was first in the rise then suddenly it fails lower than IPO. In the local market, it also happen to CAL (Calata).

I have also taken the following report from DA Market Securities Inc.into consideration, when I made my request to be approved for this IPO as follows:

At 2011 actual EPS of 2.17, the P/E will be at 14.5x. However, using trailing 12 month EPS or 2012 est. EPS of 2.39, P/E is at an improved 13.2x.

After the offer, Book Value (BV) will increase to 21.58, translating to a Price-to-Book Value of 1.46x

Considering improved market conditions and optimistic outlook on the industry’s growth momentum, the company lists at an attractive valuation. Recall that EW listed in April 2012 at a price of 18.50/share, and using 2011 actual EPS of 1.54, the offer was at 12x P/E. BV 13.72, 1.34x PBV.

Later I will report the result of this investment. And I hope it will goes up.

The Tentative listing date will be on February 19, 2013. I hope I made a right decision in getting PBB IPO.

How To Start Investing in Stock Market

03 Thursday Jan 2013

Posted by in Stock Market

≈ 4 Comments

Tags

, , , , ,

Stock MarketYesterday I shared a Youtube video in my Facebook wall that says more and more Filipinos are now starting to invest in stock market. The post catch the attention of some of my online friends as well as relatives, which eventually started a conversation about stocks. Here are some of the questions and answer that I made during my conversation for the benefit of those who also want to learn investing in Stock Market

I have heard that investing in stock market is risky and it is like gambling? Are you now into gambling Dexter?

Well this is my answer, Stock market has two kinds, one is investing and other is trading. When you say trading, it is almost equal to gambling since, what you bought today might be sold out before the market close or could be sold by tomorrow. It is good if the market goes up, but what if the market goes down it is a sure lost. Trading is also buying speculative stocks, which means that a trader is buying a stock which does not have any history or anything to prove as a company. They just buy because of rumors that it will be high tomorrow.

I must confess that when I started stock market, I did the same because I do not know the difference of investing and trading. I do not have any mentor and I just visit some blogs and forums for information. I have not even read any book to learn first before going to stock, but as what the saying goes experience is the best teacher.

Investing is buying stocks with good market reputation, they are usually called blue chips stocks. After buying, investors tend to let their money grow for some time. It might be 1 year, 2 years, 10 years or more. If you know Warren Buffet, this is the system that he is using. He study the market buy the sticks and forget about it and he let it appreciate from time to time. Investors also earn in two ways, one is price appreciation and the other is through dividend. There are time also that investors will buy stocks and wait for his Target Price before selling his shares.

So is it Risky to Invest in Stock Market?

Actually in reality there is no safe investment. Investment will tend to gain or lost. As an investor you need to be financially literate to know what you shall behave in good times or bad times. If you cannot watch how the market moves, it would be better to go to Mutual Fund (less risk) or Equity Fund (high risk), where there is fund manager who can watch over the movement of your money. I have heard that Mutual fund performs well last year which have 30+% interest. Of course nobody knows if it will still be the same this year. Your risk appetite will definitely determine your gain. Less risk – less gain and the higher the risk – the higher the gain. I myself have 17.78% gain last year.

So how much do I need to start to Invest in Stock Market?

Good to inform that nowadays you can start at an amount of 5,000 through colfinancial.com, all my stock transaction is made through online since I am outside the country I managed to get a broker that can serve me through online. One better thing in COLFINANCIAL is their EIP system, where they will allow you to invest on a monthly or weekly or quarterly or whatever is your preferred frequency of payment with a fix amount. It is also called Peso Cost Averaging

So how did you enroll in COLFINANCIAL?

I have filled up their application form, then scan the documents and send it to Colfinancial for checking and after they have checked my details they told me to send the original documents to their Ortigas Office. After they have received the documents they send me my login details and the bank reference that I will use to start investing in the stock market.

There are still lots of Q&A that I have responded yesterday and I think I can make the other conversation in future post. So keep on sending question though the comment section so that we would be able to respond to your question. If I can’t answer the question I will try to ask some of friends to respond for us. Make Sure to provide us your email as shown in the side bar for you to be updated on our post.

Photo Credit : Flickr username 401(K) 2012

Update : Great Information from Philippine Stock Exchange on Investing Procedure ( Courtesy of The Global Filipino Investors TGFI Facebook Group)

Action Plan: Increase Assets That Could Produce Additional Income

02 Sunday Dec 2012

Posted by in Personal Financing

≈ 7 Comments

Tags

, , , ,

Personal Finance

Source : https://www.facebook.com/FinancialIndependence

I saw the above photos from my Facebook groups which was first shared from Journey To Your Financial Independence, I do not know the owner of the photo so I just credit it to the page.

Anyway, I got a good idea from this simple flow chart, and if all people will just realize the power of the above mentioned flow chart, people will be able to gain financial freedom. I think the hardest part of the diagram is the “reduce expenses part”, especially if most of the expenses are fixed and cannot be adjusted. What I love are the steps on the left which is to increase the assets that gain income. As a person who wants to be financially free, increasing an asset that gives income is a way to have a debt free lifestyle. For me, I would choose having an asset that could give me a passive income. Mindset, Goals and Financial Planare very important since without it, a person would not be able to move from his present situation.

Continue reading »

My 10 Year Old Son is Now an Investor

29 Thursday Nov 2012

Posted by in Daily Dose, Personal Financing

≈ 6 Comments

Tags

, , , , , , ,

SMPH Stocks
Image Credit: pse.com.ph

I started doing investment in stock market last January 2012, and now since Asian economy is booming my portfolio have increased 15% from my capital. You might say that 15% is low if the market is booming and you are right. It is actually low since I am doing trading before rather than investing. When I tried stock market I don’t know the difference between trading and investing, I thought it’s just the same. Through reading, I came to know that trading is like gambling and it is really dangerous while investing is saving for the future by trusting the company where you put your investment.

Speculative stocks or penny stocks are the stocks loved or hated by the traders while blue chips stocks are investor’s baby. When I say blue chips stocks it means big companies who have an increasing price based on their history. It is a stable company which are normally suggested by brokers like Citiseconline.

Daily while I am bringing my son and daughter to their school, investment is one of our discussions. So yesterday, when I and my son are chatting, he decided to invest his savings to the stock market. My 10 year old son decided to put his 80 Saudi Riyals (850 pesos) in my care by investing to SMPH (I ask him to choose from MBT, BDO, MPI and SMPH). Since I do hold some stocks position at SMPH, I sell part of my stocks to my son at the amount of 15.12 pesos (It is just an internal agreement since he cannot have an account in Citiseconline at his age). My son also decided to give his monthly saving to me in the future to add up is portfolio. He has also installed Bloomberg Applicationon his iPad to monitor the movement of his stocks.

There was a time that me, my wife, and my son is watching Warren Buffetinterview, we have learned through that interview that Warren started doing investing in the stock market at the age of 11. I told my son that if Warren started at 11 and he can start at 10 there is a big chance that he will also be a billionaire like him. And I saw a smile in my son’s face.

So if my son is now eager to learn the stock market at his early age, why don’t you start learning how to invest also? If only there are people who teach me about investing at my early age, I would have been an investor at my early age.

Update: I came to know about ITF From COL which enable my son to have his own account, I will study and inform our readers in the future.

Difference Between Bad Debt and Good Debt

06 Saturday Oct 2012

Posted by in Personal Financing

≈ 3 Comments

Tags

, , ,

Difference Between Bad Debt and Good DebtMany think that all debt is bad and there is no good debt. Now let me just share you some thoughts on what I understood about the bad debt and the good debt.

One might ask, is there any difference between the two? I believe yes there is difference. Almost all businessmen succeeded in their business through borrowing. The borrowed money is used to finance their business, but before they go to borrowing a feasibility study is being made in order to know the cash flow of their business.

I can say that anything that will give you income after borrowing is a good debt. That means if you borrow money and then the money will be used as a capital and later will give you income then it is a good debt.

As an example a certain entrepreneur borrowed money to buy for a Van which will be used on his school transportation business. He needs to pay 10,000 monthly in the company and he anticipated of having 15,000 monthly incomes for his business. A certain amount needs to be saved for the monthly maintenance say 2,000. With this given scenario a 3,000 monthly income is seen. Therefore this is what I call good debt.

And so what is bad debt? Bad debt is borrowing for pleasure only. As example buying new mobile phones and using credit with zero interest. Even if it is zero interest, the phone needs to be paid monthly but there is no ROI (Return of investment). So if you really don’t need a new phone don’t use your credit card and wait for the time that you have an extra money to buy for yourself. However if this phone is a necessity for a business and you believe that your business can pay off the monthly bill then it is a good debt.

Bad debt leads to headache and stress. For sure if one is into a bad debt it is impossible to save for emergency fund.

As a general rule when you borrow the money and it earns an interest then it good, if it is outgoing without any return of investment then it is bad debt.

Hope you like this post.

I Need to Start Saving for My Emergency Funds

03 Wednesday Oct 2012

Posted by in Personal Financing

≈ 4 Comments

Tags

,

My Emergency Funds I actually do not know about the emergency funds, until such time that I have heard about this topic in you tube through ANC Money. Emergency funds is a fund that is ready at any time if the need arise. According to one of the financial adviser that was interviewed in ANC Money, emergency fund shall be at least 3 to 6 months of the monthly expenses of a single individual.

I also learn that emergency funds can be place in an investment portfolio that can be withdrawn at a maximum of 3 days. All I thought is that emergency fund should be placed in the bank, but I learn that the bank is not the only option to place the emergency fund.

The technique is that we need to look for a place where it can give higher yield than that from the savings bank.

I still don’t have emergency funds but I have stocks through COL. I will start saving for the emergency fund amounting to 10% of my salary until such time that I can complete the 3 to 6 months emergency funds and I hope to start it soon.

How to Start Your Journey on Becoming Rich and Debt Free Lifestyle?

26 Sunday Aug 2012

Posted by in Personal Financing

≈ 2 Comments

Tags

, , , , , , ,

How to Start Your Journey on Becoming Rich and Debt Free Lifestyle?This is also one of my question in life. I have been working for almost 13 years and yet there are lots of things that I need to accomplish to become a rich man. I am rich spiritually but I think financial resources should follow. Today during my reading of the Cash Flow Quadrant by Robert Kiyosaki, he mentioned that we need to start building list of assets that brings income and not expenses.

What he mean, is that our assets should make cash-in and not cash-out. As an example a loaned car is not an asset but liabilities if it is not being use to earn but only for leisure and comfort. However if this loaned cars will be used to fetch kids at school and it’s earnings will be more than that of it’s monthly payment then it can be called as an asset and not a liabilities.

He is right, in all our expenses its should add up in our income and not drawing out from our income. Just imagine if we have lots of assets that making money for us, then it can be called a passive income. A small income is still an income.

I will update you on things that I will do in the future on how I can acquire a new income generating assets.

By the way I also learn that there are 2 types of Debt, a Good Debt and Bad Debt. Perhaps I will have to discuss those things in my next post.

Update : Difference of Bad Debt and Good Debt

Hindrance for Time Investment

14 Tuesday Aug 2012

Posted by in Daily Dose

≈ Leave a Comment

Tags

, ,

email1Finding time to learn is also a type of investment. You invest your time and strength to be able to gain knowledge. This knowledge could be used to start your own business. We need to use our time wisely to get the proper information on the things that we need to learn ( I call it time management) . There are times that we are eagerly trying to learn something but we are being side track by other things on the net which make us out of focus on our main objective.

In investing we need to make sure that we set our goal first and we stay focus on our objective.

Here are some of the things that could usually make you out of focus while doing research through the internet.

  1. E-mail
  2. Facebook
  3. Ads in the net
  4. Chat or any Messenger

If you could avoid those things mentioned above you could be able to finish your task which is learning.Learn to manage your time well and avoid destruction. Stay Focus on your goal.

Business Ideas From An OFW Point Of View

11 Wednesday Jul 2012

Posted by in Business Ideas

≈ 4 Comments

Business Ideas From An OFW Point Of ViewAs an OFW working in Saudi Arabia, I have always dream of having my own business someday and escape from the corporate world. I love reading blogs and books about financial management, successful stories of other entrepreneur stories and more. I also remember watching Negosyete when I was a kid. Negosyete is a television program showcasing different businesses in the Philippines aired late 90’s. I don’t think it still exist. Now there are lots of blogs, e-books, seminars where we could attend to gain knowledge in business and investing. We only have to control the usage of our time. As for now I am engage in the following businesses:

  • Piggery – It’s actually a backyard business controlled and manage by my brother, I am just an investor and I normally earn at the range of Php 3,000 to Php 5,000 a month from a Php 70,000 capital, It’s just an estimated average amount.
  • I have an online business, I build website and do some SEO (Search Engine Optimization), get some writers and let the advertisers come in. As of this time our online earnings is not stable due to changes of algorithm being made by Google.
  • I have small funds at the stock market, where I save every month. As of now my investment in stock market is earning 10% from the time I start last January. I mean Capital vs Net Total Account Equity Value. I use colfinancial.com as my broker since I am living outside the Philippines and I have to manage my portfolio online.

I still have some debts to pay. I actually made this blog to remind myself that I need to focus and learn more things in investing so that I could leave a debt free life. I always believe in Proverbs 22:7, “ The rich ruleth over the poor, and the borrower is servant to the lender. “ (KJV).

I will try to explain my experience about the different business mentioned above on my future blog post.

Welcome to Pinoy Investment Guide

05 Tuesday Jun 2012

Posted by in Blog Information

≈ 1 Comment

Tags

, , ,

Welcome to Pinoy investment Guide

First of all, let me introduce my self, I am Engr. Dexter Panganiban, an OFW (Oversees Filipino Worker / Online Filipino worker) working in Saudi Arabia for almost 13 years. I have plan to start this blog long time ago but I am hesitant because I may not be able to give the readers the information that they will be looking on this blog. But anyway, I am a newbie investor, so all information in this blog will be coming from the newbie perspective. I would like to share my thoughts, ideas and share my success and failure in this blog when it comes to investment.

I will detail the things about investment, finance, business that I learned and will be learning in the future through this blog. BTW I am also the guy in charge at Tech At Hand Dot Net, a tech blog which have been in existence for the last 5 years. I am also into trading and I have been trading since January 2012. I am using Citisec Online (COL Financial) as my broker. I trade online since I am in Saudi Arabia.

So I hope to increase our readership as well as to contribute value to other Pinoy, specially OFW, who wish to start their own business or even become an investor in a business.