How to Sell Stock after 20 Years of Accumulating

I received an e-mail from Josef Gamboa asking me if after 20 years of buying and accumulating stocks, selling the stocks won’t be a problem. Well, the answer is selling the stocks 20 years from now is as easy as buying the stocks today. Why did I say that? The stock market has been here for decades already and it is still existing and growing. The history tells us that stock market is here to stay. So for all of those people out there, who have been asking themselves if selling the stocks twenty years from now is not a problem, just sit back and relax.

Peso Cost Averaging

What Josef wanted to do is that he will just keep on buying his favorite stocks every month. He doesn’t care whether the stocks are up or down because in the long run, the prices will have an average price that is not too high or too low. It sits right there in the middle of lowest and highest prices of the stock. This type of investing is called peso cost averaging. This type of investment is good for the Filipinos who don’t know much about the stock market. In fact, some of the great investors prefer this type of investing.

Do you know Warren Buffet? He is arguably the most popular investor of all time. He is still alive mind you. He is one of the richest men in the world. He will buy stocks that he believed are cheap and then sell it after a decade, or two decades or three decades or sometimes he doesn’t sell it anymore. One of his mottos is “buy and hold forever”.  I hope one of us will become like him. Warren Buffet doesn’t do peso cost averaging but the similarity between his investing style and peso cost averaging is that when you buy a stock, you sell it after a long, long, long, long years.

So to Josef, what you planned to do is actually good. I know most of us are busy with our day jobs and we have limited time to study the stock market. Thus, peso cost averaging will most likely work for all of us. The system is simple but effective.

Buy Blue Chip Companies Only

In order to sell your stocks immediately after 20 years of accumulating them, you need to buy blue chip stocks only. Buy solid companies which will last until the next 50 years or so. Yes, buy blue chip companies only and ignore the rest. These big companies like PLDT, Ayala Land, BPI, Metrobank, URC, etc have big market capitalization. If your chosen company has a big market capitalization, you have a bigger chance of selling it immediately, because you have a lot of buyers that will buy that stock which includes the foreigners.

So how can you determine these blue chip companies? The best way to get the list of these companies is to check the Philippine Stock Index. This is the list of the 30 biggest companies in the Philippines otherwise known as blue chip companies. Sometimes the composition changes because some companies have met the requirements meted by PSE.

4 Steps in getting those 30 companies included in the Philippine Stock Index

         1.  Go to www2.pse.com.ph (actually this is the old website of PSE, but I prefer to use it because of my familiarity with its functions).

         2.   Click Stock Quotes

   3.  Click PSEi

     4.   The list of blue chip companies will appear

 

Ripe old age, Sell the shares and enjoy!

Ok, after 20 years you have decided to call it quits and enjoy the hardwork you have toiled in your entire life. You are now ready to retire and sell your stock investments.

As I have said above, in order to sell your stocks immediately, you must own blue chip companies only. For illustration purposes, you bought Megaworld Corporation for the last 20 years and you are ready to sell it. How in the world can you sell those stocks?

Alright, if your stockbroker is Citiseconline which I am very familiar with, just click the sell button, type the current price and sell all your shares. Sometimes, in just a matter of seconds, not minutes, your transaction will be executed and voila, your shares are now transferred to you cash account. Just ask Citiseconline to transfer the money in your bank account.

              5 Steps When You Sell Your  Stocks on Citiseconline

1.     Click Trade/Portfolio

2.       Click Portfolio

       3.       Click Sell

       4.    Click Sell and Fill up the blanks

      5.   Enter password then click place sell order

After 20 years, enjoy your retirement, Josef. Give me a note when you reach those 1 million pesos in your stock transactions.

Real Example of Margin Loan

Last December 2, 2011, I borrowed money from Citiseconline and bought SCC shares. This kind of loan is called margin loan. I bought the stock at 209 per share and now the current price is 213 already. I plan to sell it on Monday so that I can take my profits from it.

Make no mistake about it, margin loans are too risky for investors and this is not for everybody. You need to seek the advice of your consultant before plunging into it. In fact, if you don’t know anything about stock market, I advice don’t do it. You need to know a lot of the seasonality of the stock market, the fundamentals, the technical and your own research.

I just wanted to share how the computation of the interest on this margin loan. Let me provide a real example on this. But before that, just remember these two things. Borrowed money + interest = Total cost. Just stick to that. Borrowed money + interest = total cost. My goal is to sell the SCC shares more than the total cost I borrowed and take the profit.

Computation of interest is like this: (Amount Borrowed * No. of Days * 18%) / 365 days) + 12%VAT.

OK, here is the real example of it. If you have an excel sheet and just copy the formulas I presented here, you will have a clearer picture when you do your own computation.

Borrowed Money	100,615.95
No. of Days of Borrowed Money	(Dec 11 minus Dec 2)                                  9 days
Interest	18% per year
No of Days in one Year	365
Interest	(100,615.95 x 9 days x 18% ÷ 365 days)      446.57
VAT	(446.57 x 12%)                                             53.59
Total Interest Cost	101,116.11

My total interest cost for 9 days is 500.16. When you sell, you incur tax again. My previous computation on selling transaction cost is 0.795% of the stock value. So, that is another cost to consider. If I will sell my 480 SCC shares at 213, the total value is 102,240. Selling cost would be 812.80 (102,240 x 0.795%).

Stock Value - Total Interest Cost - Selling Cost = Profit

102,240 – 101,116.11 – 812.80 = 311.09

My profit for 9 days is 311.09 without spending any pesos. Not bad. My prepaid card for the week is covered because of this. Wink.

If you are not prepared to go through the emotional roller coaster ride just in case the stock go down, ignore this margin loan.

“There are risks that you cannot afford to take, but there are also risks that you cannot afford not to take”.

Real Example of Cash Dividend

Today, I received a notification from Citiseconline, my online stockbroker saying that the cash dividend declared by Security Bank will be credited in my account at the end of the day. Wunderbar!

Please take a look at the notification of the cash dividend I received from Citiseconline. I received around 1,000 pesos from SECB. Taxes already deducted.

December 6, 2011   Attention: RANDY XXXXX

 This is to inform you of your cash dividend entitlement with details as follows:  

Account No. : XXXXX

Stock Code : SECB

Cash Dividend (Php) : 1.00 / share

Ex-Date : November 3, 2011

No. of Shares Entitled to Cash Dividend : 1,080

Gross Amount (Php) : 1,080.00

Less Withholding Tax (Php) : 108.00

Net Amount (Php) : 972.00

Cash dividend is money paid to stockholders, normally out of the corporation's current earnings or accumulated profits. All dividends must be declared by the board of directors and are taxable as income to the recipients.

Before I received my cash dividends, there are four dates that a cash dividend must walk through. These are the declaration date, ex-date, record date and the payment date.

Let us take a look at the declaration of cash dividends by Security Bank last October 21, 2011 taken from www2.pse.com.ph.

Date : 10/21/2011

Content : Please be informed that we received the BSP approval of the regular semestral cash dividend of P0.50 per share and special cash dividend of P0.50 per share of Security Bank Corporation. The record date for SBC's P1.00 per share cash dividend is on November 9, 2011, while the payment date falls on December 6, 2011.

CASH DIVIDEND (REGULAR): CASH - P0.50 per share

EX-DATE - November 3, 2011

RECORD DATE - November 9, 2011

PAYMENT DATE - December 6, 2011

CASH DIVIDEND (SPECIAL): CASH - P0.50 per share

EX-DATE - November 3, 2011

RECORD DATE - November 9, 2011

PAYMENT DATE - December 6, 2011

1.     Declaration date – the date when the directors of the company announce that a dividend will be paid to stockholders. Also called the “announcement date”.  

a.     In our example above, the declaration date is October 21, 2011. Dito inaanunsyo na may dibindendong paparating sa mga investors.

2.     Ex Date – this is the cut-off date in which the sellers are still entitled with the dividends. 

a.     In our example above, the ex date is November 3, 2011.             Kung bibili ka ng SECB stocks sa Nov 3, 2011, hindi ka na kasali sa bibigyan ng cash dividends dahil nga ang cut-off ay Nov 3, 2011 o ang tinatawag na ex-date. Pero kung ikaw naman ang nagbenta ng stocks noong Nov 3, 2011, kasama ka pa rin sa listahan ng mga makakatangap ng dibidendo.

3.    Record Date – The date established by an issuer of a security for the purpose of determining the holders who are entitled to receive a dividend or distribution.

a.     In our example above, the record date is Nov 9,2011. Dito tinitingnan kung sino ang mga may hawak ng SECB stocks as of November 3, 2011 para malaman ng kumpanya kung sino ang mga dapat bayaran ng cash dividends.

4.    Payment Date - The date on which a declared stock dividend is scheduled to be paid.

a.    In our example above, the payment date is Dec 6, 2011. Dito sa araw na ito, babayaran ang cash dividends. Tulad ko, ngayong araw ako binayaran ng cash dividends dahil yun ang nakasaad sa kanilang cash dividends declaration.

Cash dividends are one form of generating income from the stock market as a stock investor. The other one is through capital appreciation. If you like to have a layman’s perspective on cash dividends and capital appreciation, I am recommending that you read How The Stock market Works!. In that article, I laid down the principles of cash dividend and capital appreciation in its simplest form.

Dividends are also important in picking stocks. The higher the dividend yield your chosen stock is, the better for you.

How Much To Franchise in 7-Eleven

Last November 24, 2011, I received an e-mail from "Herbs Ibrahim" asking how much to franchise in 7-Eleven.

Well before I even received his letter, I already inquired to 7-Eleven how to franchise a 7-Eleven store and how much is the cost. This is in relation to the article I read in Manila Bulletin dated November 21, 2011.

7-Eleven is swift and has been very cordial to my request. Just to set the records straight, I am not affiliated in anyway whatsoever with 7-Eleven. You can visit their website http://www.7-eleven.com.ph/ for more info.

For a new store franchise, investment costs around 3.5M - 4.5M inclusive of construction cost, initial merchandise, franchise fee, store supplies and advance rent
and deposit.

For Service Agreement, total investment would be around 1M - 2M depending on
the sales of these existing stores.

You can check the detailed breakdown of the investment here, 7-Eleven.

Here is a part of the e-mail I received from their PR.

Our special OFW package offers qualified applicants a discount on franchise fees. Kindly refer to the attached summary of our franchise packages. You may also have a representative to attend our regular Franchise Briefing every Mon and Thurs at 10 AM and 2 PM, to know more about our franchise packages. We are located at the 7th floor, Columbia Tower, Ortigas Ave., Mandaluyong near POEA.
Our franchise offer is basically 2 packages:

(1) Applying for a NEW STORE FRANCHISE (code: FC1) -

As PSC continually expands in Manila and metro provinces around the
country, our franchise applicants are simultaneously offered these new
sites as potential locations for their franchise business. Even if you
have a preferred location, PSC will evaluate your site together with
your application (area would be ranging from 80-120 sqm). Total
investment would be around 3.5M - 4.5M inclusive of construction cost,
initial merchandise, franchise fee, store supplies and advance rent
and deposit.

(2) Applying under a MANAGEMENT AGREEMENT (Code: SA) -

Service Agreement, puts the operator in the front seat of the business
by allowing him to directly run the store as the designated Store
Manager. SA stores are our corporate stores that we award to
franchisees Total investment would be around 1M - 2M depending on
the sales of these existing stores.

Inclusive to the franchise terms of each of the above packages are the
use of 7-Eleven proprietary brands, use of 7-Eleven operations,
equipment and merchandise systems, a comprehensive 4 to 8
week training, involvement in national advertising and
promotions, start-up and bookkeeping assistance, and weekly visits by
our field consultants.

Presently our expansion and existing network of stores are
concentrated in island of Luzon covering Baguio, Pampanga, Bulacan, the
National Capitol Region, Cavite, Laguna, Batangas, Lucena down to
Bicol province.

**Timing would take a minimum of 90 up to 180 days for the entire franchise process.

7-Eleven launches OFW investment program

Source: Manila Bulletin

MANILA, Philippines — Returning overseas Filipino workers who yearn for long-term financial growth in their homeland now have the chance to finance their own small business investment and become successful entrepreneurs as world-renowned convenience store chain giant 7-Eleven launches a special franchise program for OFW applicants.

The special program, according to Francis Medina, Business Development Manager of Philippine Seven Corp. (PSC), allows OFWs to explore their own income-generating business option by using their remittances as significant “investment tools.”

“Studies have shown that OFWs nowadays no longer concentrate their remittances solely for their families’ basic consumption; in fact, most have used or saved up their remittances to finance other future pre-needs or necessities such as education, housing or land properties, health and small private businesses,” he noted.

“And with the population of migrant Filipino workers growing at 5% per year as they spread across various continents in the globe, imagine the overall buffering effect to the country’s economy, more importantly to the improvement of the quality of life of OFWs and their families, if their earnings or savings are channeled to finance potentially lucrative alternative business ventures such as a viable convenience store franchise,” said Medina.

Apart from the rewarding aspects of owning their own 7-Eleven franchise, like finally achieving a steady income or livelihood for them and their loved ones, Medina said that investing their earnings on a viable franchise investment option is one great way of helping the country spur local economic development and generate jobs back home.

“By becoming 7-Eleven franchisees through a special franchise program that is unique and proven reliable, OFWs can look forward to a brighter and stable future as the company will arm them with the necessary technical support, financial management, including knowledge and skills training for them to fully understand the trade as they make a successful career in entrepreneurship,” he added.
Medina noted that because OFWs are hardworking, resourceful, compliant, reliable and service-oriented, they make excellent candidates for the 7-Eleven business model just like their successful operators. He also added that because of these qualities, along with their flexibility, commitment, discipline, work ethics and sense of responsibility, OFW partners are sure to propel the growth of the franchise business.
“Being a 7-Eleven franchisee is an ideal way for OFWs to build their future right in their homeland. By investing their hard-earned money on a proven brand that works as hard as they do, they can be sure of a mutual partnership that works towards the achievement of a better, more secure future for themselves and their loved ones,” said Medina.

There is Wealth in Garbage

Have you read in a broadsheet about banks selling their foreclosed properties? What did you feel? You know my first feeling about this is, “who the hell cared about it!” I immediately flipped onto the next page and see the latest news in sports. If there are properties I normally looked at the classified sections of broadsheets are the rooms for rent or bed spaces. Those are the classified ads I can afford. Forget about the condos for sale or for rent, the apartments for sale or for rent, the townhouses for sale or for rent, the houses for sale or for rent and the land for sale or for rent. Forget about them because all could afford in buying a real estate in my 25,000 pesos salary is a bed space or even a small room if the landlord will give in to my plea of giving me a discount on rent. You see, I am not even in the buying level. I’m still in the renting level and in the renting level, all I could afford is a bed space or room for rent. Oftentimes, I feel pathetic. I feel sorry about myself. All I could muster when checking the classifieds section is how in the world I can buy those properties. Perhaps not in my lifetime, I guess.

Two years have passed and I bought my first real estate. It’s a small land in our province covered with lahar. Yes, my first real estate investment is a lahar covered agriculture land. It’s a deserted land who perhaps the only plants I can put on is sugarcane. Well, actually you can plant other trees and vegetables as well but in that area, the common plant being cultivated is sugarcane. Thus, we planted it with sugarcane and my father managed it. Every year, it is giving around 80,000 pesos in extra money to us.

How I was able to purchase my first real estate? My salary is only 25,000 and I have a small savings around 20,000.

The Opportunity

·         When our province was ravaged by lahar, the value of the land is almost zero. Yes, it’s almost worthless that some owners are selling it for 10 pesos per square meter. Since most of the livelihoods of the people were destroyed already, the people moved in to the resettlement area where concrete houses were provided by the government. In need of cash and nobody seems to care whether the town will ever get up again, some people tried to raise cash by selling whatever is left in their properties. And those properties include vast hectares of lands.

·         Everyone is down and nobody wants to buy the lands. Who in the world would buy a land covered with lahar? Nobody knows when will Mt. Pinatubo strikes again. It will be a crazy decision on those days.

There is Wealth in Garbage

·         I remember the chairman of the board of the Company I worked before. He said that there is wealth in trash, or in garbage. He is actually referring to the current location of our Company. In that place erects a two storey building filled with a number of companies. The environment was conducive to work and the building is a great place to rest as well.

·         A few years ago, the land of which our company is located is a garbage filled land. Flies are all over the place and the place is covered with bad smell. Dirty little water passages behind are not good to the eyes. I myself also would not dare live there! It’s just a filthy, bad smelling place with rotten leftovers from all city’s waste. But look at it now; it’s one of the beautiful structures along the main road with proud companies displaying their logo at the main entrance. What a transformation!

·          I got that idea from him. Thus, I asked my father if there are still people selling land. He said “yes”. Mang Pedro’s land which is located 100 meters from the road is being sold.

·          “Ok, tay. E kung bilhin kaya natin yung lupa. Down tayo ng 20,000 pesos and the rest hulugan nalang natin. At least may pera siya buwan buwan” I said to him. “Sige, sabihin ko sa kanya”, my father told me. On the next day my father went home bringing the good news. Mang Pedro is agreeing with the terms.

Transformation

·         For two years, I am giving 5,000 pesos to Mang Pedro until the payment is finished. While we are paying the monthly dues to Mang Pedro, my father started to cultivate the land. We hired tractor here and there and leveled the land so that vehicles can be accommodated.

·         After cultivating and cleaning the land after almost one month, we are now ready to put up the sugarcane.

 

Bottomline:

·         Dream big but start small. “Great things start from small beginnings” ika nga ng Milo.

·         Life is full of abundance. You just need to look for it or search for it. No, you don’t have to search for it actually. Just look around and recognize the millions of opportunities lying around.

·         Wealth is in every corner of our eyes, we are just being blinded with our own perspective of wealth.

·         The next time you look at garbage, there might be some wealth waiting for you to discover. 

How the Stock Market Works?

Simple laman po ang stock market. Dalawang bagay lang yan. Una, yung stocks mo lumalaki ang value, pangalawa tumtanggap ka ng dibidendo mula sa kita ng kumpanya. Opo, ganyan lang po yan.Pinaganda lang ang mga words and definitions kaya parang ang hirap intindihan. Kung kaya mong magtayo ng isang karinderya, sa tingin ko kaya mo ring intindihin ang stock market.

Sige po, kunwari magtatayo ka ng karinderya o fastfood restaurant ngayong taon. Buwan buwan bumibili ka ng mga gamit sa iyong planong karinderya. Inihahanda mo na ang mga gamit para next year, kapag umuwi ka sa Pinas for good, handing handa ka na sa iyong negosyo. Kumbaga ang kulang na lang ay ang iyong presensya. Bumili ka ng singkwentang upuan sa buwan ng Enero. Ipinadala mo ang pera sa iyong mahal na ina na siyang mamamahala sa iyong mga plano at bilihin habang ikaw ay nasa ibang bansa pa. Sa buwan ng Pebrero, Nagpabili ka uli ng gamit sa iyong karinderya ng mga mesa. Sampung mesa ang iyong ipinabili dahil sa tantiya mo ay instant success naman ang iyong kakanaing negosyo. Sa buwan ng Marso, nagpabili ka ng dalawang stove sa iyong nanay. Medyo kinakabahan ka na sa iyong plano dahil nabalitaan mo na ang iyong pinabiling mga upuan at mesa noong Enero at Pebrero ay pinahiram ng iyong nanay sa inyong kapitbahay dahil sa ipinakasal na ang kanilang bunso.

Kinausap mo ngayon ang iyong nanay sa iyong nabalitaan dahil baka mauwi lang sa wala ang lahat ng pinaghirapan mo. Tumawag ka sa iyong nanay, “Nay, musta po. Hindi po ba inaagiw ang mga upuan sa bodega?” “Hindi naman anak, wag kang mag-alala malinis pa rin ang mga iyon, Siyanga pala pinahiram ko muna kay Mareng Belen yung beinteng upuan at limang mesa noong ikinasal ang kanilang bunso. Nakiusap siya sa akin. Pagkatapos noon, balik uli sa bodega. Hindi ko mapahindian baka mamaya ay magkalat pa ng tsismis at madiskaril pa ang iyong planong karinderya”, sagot ng iyong ina. “Salamat nay”, iyong nasambit na lamang. Naisip mo ngayon na tama pala si Inay. Kumbaga may puntos na rin yon sa magiging customer mo.

Sa buwan ng Abril, nagpabili ka ng mga kawali, kaldero, at iba pang mga lutuan at ipinalagay mo sa inyong bodega. Sumunod na buwan ay mga kutsara, tinidor at plato naman ang iyong pinabili. Sa buwan ng Hunyo, hindi ka muna nagpabili dahil kailangan mong magbayad sa tuition ng anak mo na nag-aaral sa private school. Siya muna ang inuna mo siyempre dahil may motto ka na “Family First”.

Sa mga sumunod na buwan kinumpleto mo ang mga gamit na iyong kakailangin sa karinderya business. Nagtabi ka rin ng maliit na salapi upang may magamit ka kung may dumating na emergency. Kinwenta mo ngayon ang lahat ng iyong ginastos sa karinderya business at iyong nakuha ang total na 200,000 pesos. Hayan, nagsisimula ka pa lamang at 200,000 pesos na ang iyong ginastos.

Heto na, pauwi ka na. Excited na excited ka dahil alam mong makikita mo na ang pamilya mo at siyempre para simulan ang binabalak mong negosyo. Pagdating sa NAIA airport iba na ang pakiramdam mo at lalo kang sumigla nang makita mo ang iyong asawa na kumakaway kasama si Junior, ang iyong anak. Halos maiyak ka dahil naisip mo matagal mo silang makakasama ngayon. Yakap dito, yakap doon, halik dito, halik doon. Halos ganoon ang eksena nang mapalingon ka sa iyong paligid.

Pagkatapos ng isang linggo, nag-aplay ka ng business permit sa inyong munisipyo para maumpisahan na ang iyong karinderya business. Dahil handing handa na ang iyong karinderya business bago ka pa man dumating sa tulong ny iyong mahal na ina, kinabukasan lang pagkatapos mong makuha ang business permit ay binuksan mo na ang iyong karinderya business.

Halos malula ka sa dami ng mga taong kumain sa iyong karinderya. Yung singkwentang  upuang pinabili mo noon ay kulang pala kaya hayun nagpabili ka uli ng singkwentang upuan at sampung mesa para maacommodate lahat ng tao. Tumawag ka ngayon sa boss mo sa Saudi upang ipaalam sa kanya na hindi ka na babalik pa at masaya ka na sa Pinas.  Sa loob ng isang taon, hindi nabawasan ang iyong mga customer kung kaya’t ikaw ay tuwang tuwa sapagkat lumalaki ang pera mo sa bangko. Bago magpasko ay kinwenta mo ang iyong kinita sa loob ng isang taon. Halos umabot ito ng kalahating milyon. Sabi mo sa iyong sarili, sa 500,000 pesos na kinita ko, yung 100,000 pesos ay kukunin ko para sa personal na pangangailangan mo. Itong 100,000 pesos na ito, ang tawa sa stock market ay Dividends. Opo, kung magkano ang idineklarang pera na pwedeng kunin mula sa kinita ng kumpanya ang tawag diyan ay Dividends. Tulad mo, kumita ng 500,000 pesos ang iyong karinderya at ang kinuha mo lamang na pera para sa iyo ay 100,000 pesos, dapat magmula ngayon ang tawag mo sa kinuha mong pera ay dividends dahil papalapit ka na sa mundo ng stock market. Papaano naman iyong natitirang 400,000 pesos mong kita? Sapagkat nais mong lumago ang iyong negosyo, iyong inilaan ang 400,000 pesos para sa isa pang karinderya na iyong itatayo sa kabilang bayan, ang Bayan ng Magiliw. Hayan, para ka ng Jollibee, may branch ka na.

Nabalitaan ngayon ng iyong kapatid na si Kuya Alex na nasa Canada ang iyong lumalaking negosyo. Tinawagan ka niya kung pwede siyang makisosyo sa iyong karinderya business. Sabi niya “ Tol, para naman makasama ko rin ang pamilya ko jan baka naman pwedeng makisosyo ako sa negosyo mo.”

Sagot mo, “ Ok lang kuya kaya lang pati si Ate Berna ay gusto ring makisosyo. Pwede ko kayong isama sa aking negosyo kaya lang ang presyo ng iyong ipupuhunan ay 450,000 pesos bawat isa. 450,000 pesos mula sa iyo, 450,000 pesos mula kay Ate Berna.”

Nabigla ang iyong kuya sa iyong sinabi “Ha! Hindi ba 200,000 pesos lang puhunan mo jan? Bakit kailangan naming magbigay ng tig-450,000 pesos sa iyo.?”

“Kuya Alex, ako lang ang may-ari noon at sa akin lang ang tubong 500,000 pesos. Pangalawa, yung pangalawang branch na aking itinatayo ay nagkakahalaga ng 400,000 pesos. Ang tubo ng bawat karinderya sa isang taon ay nasa 500,000 pesos” sagot mo kay Kuya Alex mo. Sa stock market ang tawag dito ay Capital Appreciation. Yung 200,000 pesos na ipinihunan mo ay hindi na kasing-halaga dati bagkus ay tumaas na dahil sa lumalaking kita ng iyong negoyso.

“O sige sigepara wala ng problema magpapadala ako ng 450,000 pesos. Teka sa 500,000 pesos na kinita mo sa isang karinderya magkano ang akin?, tanong ni Kuya Alex.

“30% ang mapupunta sa iyo kuya at 30% naman kay Ate Berna. Yung 40% sa akin dahil ako naman ang nagtayo ng negosyo at nagpalaki,” iyong sagot kay Kuya Alex. Dahil may kasosyo ka na, ikaw pa rin ang nagmamando ng karinderya business ninyo dahil ikaw ang may pinakamalaking ambag sa puhunan. Ang tawag sa iyo ay Majority StockHolder sa stock market. Halimbawa sa Ayala Land, ang majority stockholder ay ang mga Ayala clan pero marami silang mga kasosyo tulad nina Ate Berna at Kuya Alex. Ang Ayala Family pa rin ang nagmamando ng Ayala Land kahit may mga kasosyo na sila dahil sila ang Majority StockHolder ng kumpanya.

Sa stock market, pwede kang kumita dahil sa Capital Appreciation at pangalawa dahil sa Dividends. Sa stock market, ikaw ay magiging katulad ni Kuya Alex at Ate Berna mo dahil makikisosyo ka sa mga negosyo ng mga mayayamang tao sa Pilipinas.

Halimbawa dahil paborito mong bangko ang Metro Bank, bumili ka ng shares nito. Sa loob ng isang taon ay kumita ang Metrobank ng limang bilyong piso at nagdeklara ang kumpanya ng isang bilyong  dibidendo. Katulad lang ito ng ginawa mo noon nang magdeklara ka ng 100,000 pesos na dibidendo para sa iyong personal na gastusin. Dahil ikaw lang ang may-ari ng karinderya mo noon kaya solong solo mo ang dibidendo mo. Pero sa Metrobank, dahil napakaraming mga nagmamay-ari nito, ang dibidendo ay ipapamahagi sa mga nagmamay-ari ng mga shares nito. Katulad mo, next year dahil kasosyo mo na si Kuya Alex at Ate Berna mo, kung magkano ang idineklara mong dibidendo ay paghahatian ninyong tatlo ayon sa laki ng inyong pagmamay-ari ng karinderya. Ang tawag dito ay Dividends.

Sa sumunod na taon, ang Metrobank ay kumita ng pitong bilyong piso at dahil lumaki ang kita nito ay dumami ang gustong bumili ng shares nito. Naging interesado pa nga ang kaibigan mong foreigner na bumili ng Metrobank shares dahil sa laki ng kita at potensyal ng bangko na ito. Dahil maraming gustong bumili ng Metrobank shares, tumaas ang presyo nito. Ang presyo nito na binili mo sa halagang 50 pesos per share ay nasa 70 pesos per share na. Ang tawag dito ay Capital Appreciation.

Top Ten Stocks Bought by Foreign Investors for the Week Oct 17-21,2011

In the previous blog, we discussed the top ten stocks sold by foreign investors. When I say sold by foreign investors, it means net trade. For example, Foreign investor 1 sold 1 million pesos worth of stocks of DMC while foreign investor 2 bought 500,000 pesos of DMC stocks. The difference of 500,000 pesos between the buyer and seller is called the net trade. Thus, when I say sold or bought by foreign investors, it means net trade.

I am posting the top ten stocks bought by foreign investors for the week Oct 17-21 for your own enjoyment and information.

Here you go.

TOP TEN STOCKS BOUGHT BY FOREIGN INVESTORS FOR THE WEEK(IN MILLIONS)
Ticker	17-Oct	18-Oct	19-Oct	20-Oct	21-Oct	TOTAL
MPI	(2.82)	36.45	8.96	(3.84)	(5.15)	33.59
MEG	(19.89)	5.82	38.44	15.62	1.79	41.77
MWC	5.61	(0.78)	25.62	7.68	20.96	59.08
DMC	14.47	60.74	26.73	(14.17)	11.99	99.75
SMC	30.75	37.91	16.69	4.64	15.41	105.41
ALI	17.15	8.75	55.21	7.66	18.95	107.73
PGOLD	20.95	50.58	36.78	1.03	1.10	110.45
URC	10.21	23.45	25.13	60.57	30.98	150.33
SM	26.81	72.67	92.10	30.49	61.55	283.62
TEL	20.16	31.88	18.01	125.79	91.74	287.59

Source: www2.pse.com.ph

Please go to the pse old website www2.pse.com.ph and then click the quotation reports tab for the information in the table above.

Aside from this, I am posting the stock price of these stocks. Please see below.

STOCK PRICE MOVEMENT FOR THE WEEK
Ticker	17-Oct	18-Oct	19-Oct	20-Oct	21-Oct	TREND
MPI	3.12	3.07	3.06	3.01	3.00	DOWN
MEG	1.81	1.78	1.85	1.86	1.92	UP
MWC	19.46	19.44	19.46	19.44	19.50	UP
DMC	38.15	37.50	38.00	37.05	37.60	DOWN
SMC	112.80	111.00	111.00	110.60	112.50	DOWN
ALI	16.16	15.90	15.98	15.90	15.88	DOWN
PGOLD	12.38	12.26	12.20	12.20	12.30	DOWN
URC	44.95	44.10	44.75	45.90	46.10	UP
SM	549.00	540.50	548.00	548.50	548.00	DOWN
TEL	2,200.00	2,204.00	2,214.00	2,216.00	2,232.00	UP

Source: www2.pse.com.ph

Kindly check the column trend in the table above. It is a mixed result of up and down stock prices. When I say trend, it means that stock price ended lower in Oct 21 than the stock price in Oct 17.

UP STOCKS: stocks bought by foreign investors move up in prices. Factor the demand of the Filipinos and you will have a sure winner. PGOLD IPO started Oct 5, 2011 and since then the stock has taken a beating and now is slowly taking back it's lost ground since plunging in it's IPO days. MEG is heavily affected by the recent panic stock and is slowly gaining its momentum. URC is one of the favorite of the foreign investors I think. TEL, the heavyweight stock will always be in the list of foreign investors.

DOWN STOCKS: Even if foreign investors bought these stocks, the share prices ended in red at the end of the week. One factor that contributed to the decline of the stock prices is that the traders took profit from the intraday high. DMC had climbed by more than 13% since the stock panic.