Philippine Stock Exchange


Thursday, September 30, 2010

My Stocks for Today

       I woke up early today to see if I can sell some of my stocks. The market was red and it was not time for me to sell but to buy some. Anyway I still have some cash from the selling of my DGTL shares so I bought small shares of FLI and VLL to lower down their average cost. Hopefully I can sell some of my PX tomorrow if it will reach 16 so I could used it to buy DMC or MPI or SMPH.  

Tuesday, September 28, 2010

Stock and Shares Basics

       After a long, long while I was able to eat pizza again! The last time I tasted 1 was I think around 2 years ago or more. I just had a few slices of it until I felt my stomach was full. Yummy! It was my treat to my buddy because I have a feeling that my stocks will go up this week and I'll earn a big profit. Ha ha ha! I was just speculating.
       What is stock anyway? If you google it from the internet, the stock or capital stock of  a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to harm or damage the creditors. The stock of a business is divided into shares, the total of which must be stated at the time of business formation. Shares represent a fraction of ownership in a business.
       The mentioning about pizza at the start of this post actually will help us understand about stock and shares. Imagine that we have a big pizza in a table which was sliced into 8 equal parts. Let's say the pizza would be a particular stock and then slices that were made would be the shares. Owning 1 of the slices means you are a shareholder of that particular stock, pizza. Ownership of  shares is documented by issuance of a stock certificate which is a legal document that specifies the amount of shares owned by the shareholder and the other specifics of the shares such as par value, if any, or the class of the shares.
                                                            sample of a stock certificate
       In today's computer age, you won't actually get to see this document because our brokerage keeps these records electronically. If you have an online broker like mine which is FIRSTMETROSEC, you will receive copies of your purchase confirmation or sale confirmation online after selling or buying shares at their website.
       There are two types of stock; common stock and the preferred stock. Common stock is, well, common! When people talk about stocks they are usually referring to this stock. It typically carries voting rights that can be exercised incorporate decisions. On the other hand, a preferred stock does not carry voting rights but is legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders. But common stock also has dividends. I only buy common stocks and for the past 2 months I was able to receive dividends from some of those stocks, "i can add it to my funds or I can use it to treat my baby at Jollibee".
       How would you like to be a shareholder of your favorite foodchain like Jollibee or banks or those malls? If you could not afford the whole "pizza", then just take the "slices" that you can afford for now! Stocks anyone?!
- Romer

Monday, September 27, 2010

Stock Market, Stock Exchange and the PSE

       It's Sunday night right now while I'm writing this one and tomorrow will be the first trading day of the week again. I'm excited because I have some cash ready for bargain hunting. It was from the selling of my DGTL shares last week. Will my favorite stock, PX, continue to go up and reach my target price of 20-21? We will see.
       Going back to my topic, stock market. Taking its meaning from Investopedia, "stock market is the market in which shares are issued and traded either through exchanges or over-the-counter markets. Also known as the equity market, it is one of the most vital areas of a market economy as it provides companies with access to capital and investors with a slice of ownership in the company and the potential of gains based on the company's future performance".
       From Wikipedia, "a stock market or equity market is a public market (a loose network of economic transactions, not a physical facility or discrete entity) for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately".
       So stock market is almost like the market we see everyday where buying and selling is being done except that in stock market we are dealing with company stocks or shares. While stock exchange is an entity which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include shares issued by companies, unit trusts, derivatives, pooled investment products and bonds. New York Stock Exchange (NYSE), Tokyo Stock Exchange, Shanghai Stock Exchange, Deutsche Börse and of course the Philippine Stock Exchange which is located in Makati to name a few of stock exchange around the globe. To be able to trade a security on a certain stock exchange, it has to be listed there. Examples of those listed in Philippine Stock Exchange are Ayala Corporation (AC), Bank of the Philippine Islands (BPI), Jollibee Foods Corporation (JFC) and Philex Mining Corporation (PX).
       The Philippine Stock Exchange (Filipino: Pamilihang Sapi ng Pilipinas) (PSE) is the one of the two stock exchange companies in the Philippines,the other being, Philippine Dealing Exchange (PDEx). The PSE is one of the longest operating stock exchanges in Southeast Asia since its inception in 1927. It currently maintains two trading floors, one in Makati City's Central Business District and one at its headquarters in Pasig City.
       The main index for PSE is the PSE Composite Index or PSEi, which is composed of thirty (30) listed companies. The selection of companies in the PSEi is based on a specific set of criteria. The PSEi reached an all-time high of 4,087.96 points at the close of trading on September 21, 2010. That was only last week. To Know more about Philippine Stock Exchange, you may visit their website,
       Stock exchanges have multiple roles in the economy. This may include the following;
1. Raising capital for businesses 
       The Stock Exchange provide companies with the facility to raise capital for expansion through selling shares to the investing public. 
2. Mobilizing savings for investment
       When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks, are mobilized and redirected to promote business activity with benefits for several economic sectors such as agriculture, commerce and industry, resulting in stronger economic growth and higher productivity levels of firms. 
3. Facilitating company growth
       Companies view acquisitions as an opportunity to expand product lines, increase distribution channels, hedge against volatility, increase its market share, or acquire other necessary business assets. A takeover bid or a merger agreement through the stock market is one of the simplest and most common ways for a company to grow by acquisition or fusion. 
4. Profit sharing
       Both casual and professional stock investors, through dividends and stock price increases that may result in capital gains, will share in the wealth of profitable businesses. 
5. Corporate governance
       By having a wide and varied scope of owners, companies generally tend to improve on their management standards and efficiency in order to satisfy the demands of these shareholders and the more stringent rules for public corporations imposed by public stock exchanges and the government. 
6. Government capital-raising for development projects
       Governments at various levels may decide to borrow money in order to finance infrastructure projects such as sewage and water treatment works or housing estates by selling another category of securities known as bonds. These bonds can be raised through the Stock Exchange whereby members of the public buy them, thus loaning money to the government. The issuance of such bonds can obviate the need to directly tax the citizens in order to finance development, although by securing such bonds with the full faith and credit of the government instead of with collateral, the result is that the government must tax the citizens or otherwise raise additional funds to make any regular coupon payments and refund the principal when the bonds mature. 
7. Barometer of the economy
       At the stock exchange, share prices rise and fall depending, largely, on market forces. Share prices tend to rise or remain stable when companies and the economy in general show signs of stability and growth. An economic recession, depression, or financial crisis could eventually lead to a stock market crash. Therefore the movement of share prices and in general of the stock indexes can be an indicator of the general trend in the economy.
8. Creating investment opportunities for small investors!!! <---- THAT'S US (IYAN TAYO)  
       As opposed to other businesses that require huge capital outlay, investing in shares is open to both the large and small stock investors because a person buys the number of shares they can afford. Therefore the Stock Exchange provides the opportunity for small investors to own shares of the same companies as large investors.
             "Lastly, isn't it so nice to be an owner of a business without ever having to show yourself at work? How about just sitting back or taking a vacation, watching the company grow and just waiting for the dividend checks to come? Retiring as a millionaire, anyone? This might sound like a very nice dream but it's closer to reality actually. 
- Romer

Friday, September 24, 2010

The Stock Market and ME

       Today was my day off but I still woke up early to see how my stocks were performing. Some were in red and some were in green so I sold my shares of DGTL (Digitel), it was not moving for a long time... But to my surprise, it suddenly went up after I sold my shares! hahaha! Stock market is really unpredictable (that's just for me as of now). Anyway, I still earned some profit on that stock. Spaghetti meal in Jollibee for my baby! Before I forgot let me tell you first, my friends, how I started in stock investing/stock trading.
       I love to surf the web, checking out how to invest my hard earned money. In the net you can find almost all if not all answers to your questions. Some of my favorite sites are Wikipedia and eHow because you can learn so many things from those two sites. I'll post my all of favorite sites in this blog after some time for you to check out also. Back to my topic, stock market... I would sometimes check forums, business news and web sites of banks back then and I always encounter the words funds, savings, bonds, T-bills and of course STOCKS! When I researched more about them, I knew this is where I want to invest some of my extra cash. Why not?! Your money is earning and working for you even if you're sleeping. Although it will take you more time to understand them especially if you are not familiar with those terms like me. I preferred stocks from the other investments that were mentioned. But at that time I was not aware that there were already online brokers for those who want to be a shareholder of a company. While working in Bahrain 2 years ago, I caught my co-employee sneaking in the internet connection (we were not allowed to have internet connection there) while he was checking his stocks online. There he explained to me how he was doing the buying and selling thru internet. Wow! it was very easy for him doing the trading so maybe I could do it also. I tried to make a research about online trading again if I have time. It was cut short when I quit my job after 10 months only, so many reasons. But after several months I was able to work abroad again, and on this year while surfing the net about stock investing I stumbled upon KFAM forum. Luckily, the thread about stock investing was just started by my friend, bro john316 (that's his handle in the forum). He was very nice to me and answered all of my queries. From there, I tried to search for more about stock investing and trading. I played the stock trading game in the PSE website while following the stock investing thread by my friend. And on June of this year, I opened an account in Firstmetrosec (my online broker) and bought my first stocks (BPI, PX, FLI and PNX). All were sold already at a profit except PX which I'm still holding until now. Not bad for a newbie...

Thursday, September 23, 2010

The Investor in ME

       Hello friends! I'm sorry I wasn't able to post yesterday. I was so busy the whole day doing paper works and supervising the workshop. It's really very difficult to deal with other people of different nationalities( I have Indian, Sri Lankan and Bangladeshi mechanics) and communicate with them. Some can't comprehend even if I talk to them with Barok English...before no speak no understand, now speak now understand. hehehe... After working for several years abroad, it's already normal for me to say those kind of sentences. Anyway, that's another topic.
       We have a small sari-sari store adjacent to our house being managed by my mother since I was a kid. Until now it is still there although it has changed locations several times and underwent renovations. There were times I am the one asked to look after the store if my mother is busy. The feeling was great when I sold something as I was like a businessman who just made a great deal. So it pushed me to think on how to earn my own money at a very young age. I have tried gathering grasses and sell them to the people who have horses. They were the kutsiros driving kalesas (a horse-driven mode of transportation) before the entry of tricycles. Then I also sell ice candy in a tupada or small time cock fighting. With the chance of earning money, I didn't care if I have to walk a kilometer or 2 under the very hot sun. At the end of the day, I have several coins in my pocket and an ice candy as a bonus! haha! I can never forget also the time when I tried selling batteries in the cemetery during the All Saint's Day/ All Soul's Day. Instead of spending money going home to my province that time, I chose to be a "businessman" for several days. I forgot how much I've earned but the experience of doing that is more important to me... 
       After graduating in college and had my license, I started working and earning already. The idea of saving some money and allocate them for investment was there but I'm not sure where should I invest. My meager savings makes it more difficult for me to decide and having a business is not that simple. So I just kept on working and then tried to apply for work abroad. It was on 2003 when I was able to work in the Middle East and started to have bigger savings. Together with my father, we invested some of my cash by buying several goats and the pair of cow which I already discussed in my previous post. The outcome was stated there also. Then I have tried to have a small eatery in the city which only live for a short time. The deal with the previous owner of that eatery was not good so I have to close it down.
       Being a man who loves to read and surf the net, I was able to research about stock market and how those traders and investors make money from it. Stock market is the "secret" of the rich was what I've read from the web also. So I became more curious....
- Romer the Investor

Tuesday, September 21, 2010

The Farmer in ME

       I was born in a town where farming is the main source of living aside from fishing because we live also near the sea (actually we are very near the world famous the Hundred Islands!). In our place, we can only plant rice once a year because we have no irrigation thus after harvesting palay people tends to look for alternative jobs like fishing, planting vegetables, carpentry etc...
       Together with my siblings, I was born not rich so I was able to experience the life of a farmer; planting rice whether it is raining or the sun is shining brightly, harvesting palay under the sun, taking carabaos and goats to the pasture, feeding pigs and chickens and so much more!
       I am now an engineer but I am proud to say I know how to plant and harvest rice although I'm a little slow. I still do them when I'm in the farm. Planting rice for me is FUN unlike what was on the song that goes like this " Planting rice is never fun, can not sit and can not stand....". I do sit while planting rice seedlings. In the mud of course! It feels cool when the mud goes inside what you're wearing. hahaha! Sometimes I remember those days when I used to go to the field with my grandfather (he died a few years back) with me riding on the back of his carabao. Those memories where I used to plant rice wearing nothing (thinking that the harvest would be great if i do it) also makes me smile until now. Those were the days....
       A few years back, with the suggestion of my father, we bought several goats and a pair of cow for him to take care. I thought it would be a nice investment for my hard earned money. I also bought worms for my vermi-composting project. It was so nice at first until some problems arose in our goat raising. When our goats started to multiply, grasses became scarce and some die especially during the rainy season. Then the cows became so large that my aging father is having a hard time pulling them. On my worms, we were starting to harvest several sacks of organic fertilizer when the chickens of my grandmother also started to find out about my worms. They love it! Grrrr!!!
       I decided to sell some of my goats and I already advised my father to sell them anytime because he is already having a hard time taking care of them. My cows, I asked my relative to take care of them and we will just share the profit if ever I want to sell them. Most probably all the worms were already eaten by my grandmother's chickens!
       Near our new house, I have planted several papaya and banana last year and now they already have fruits. Just today, my wife and my baby had papaya for merienda! I'm planning to plant more trees in the farm and make a vegetable garden near the house. How nice it would be to cook newly harvested vegetables for lunch or dinner! Lastly, I'm planning to raise chickens and have a piggery in the farm as an investment.
       I wonder, what would be my schedule for the day if all these plans worked out?... Hmmmm... I think on weekdays, 9 am to 12 noon would be reserved for stock trading/investing! hahaha!
- Romer the Farmer

ME in me

        I grew up idolizing my father who is a seafarer, him working for several months at sea then taking vacation bringing home some chocolates (which i like so much when i was a kid), toys, shoes and new shirts. Dreaming that I will be a seafarer someday, I always ask my father how's life at sea? Is it nice? Is it fun? Life at sea is difficult he answers and being far from your family most of your life adds to the hardship. But what I know is that most seafarers nowadays are having big salaries! I have high school friends who are now seafarers with big houses and cars!
        Anyway, even with those comments of my father about being a seaman/seafarer I still wanted to be one like him. I wanted to be the captain of my ship.... During my senior year in high school, I checked out one of the best seafaring schools in Fort Bonifacio regarding their requirements for freshmen but.... I was ineligible! whaaaattt?! I was underage, 2 months underage. hahaha!
        I want that school only... I wanted to be a seaman in that school only but my age was the hindrance. Oh well, It's okay engineering courses were good at that time also so I decided to be a Mechanical Engineer. I forgot about my dream of becoming a seafarer as time passed by. I enjoyed being an ME student and after 5 long years I graduated and passed the licensure examination on the same year. I was able to work for several companies some of which are in the Philippines and some in the Middle East. I have worked for a plastic company, fabrication/machine shop companies, an international construction group and heavy equipments rental company all of which have allowed me to grow as a mechanical engineer. Mechanical engineering is very broad so right now I want to attend another course again but i need to save first for that schooling. We'll see. Maybe the STOCK MARKET will give me that extra money!
- Romer the ME