10 Things You Don't Know About Working From Home

1. You'll suddenly realize that housewives are totally busy people -with hardly any breaks.
2. You'll be challenged not to work because your cute baby is staring at you, saying "play!".
3. You'll be asked constantly, "What do you want to eat today" by your spouse.
4. If you're not careful, that DVD collection will be your #1 distraction from work.
5. You don't remember when was the last time you took a bath/shaved.
6. You're suddenly more interested in nice looking shorts and pajamas in the mall.
7. Your cellphone isn't getting much use unlike before.
8. When you walk to the neighborhood park, pool, all you see are yayas and their wards.
9. When it rains, you're happy you're indoors and won't be going anywhere!
10. In the hot months, you're happy that you can afford an aircon for your room!
-Jomarhilario.com

So there it is --the honest good and bad.  Find out how you can work from your nice bahay --even if you're already abroad: HOW TO EARN MONEY ONLINE?

P.S. Don't worry, this is no s-c-*a-m. I know the guy. Read and judge for yourself: HOW TO EARN MONEY ONLINE?

What Goes Up, Goes Down!

Yesterday, I went to our office for work. Normally, we are taking a break of five minutes within the 8 am to 1 pm morning period before lunchtime. During the breaktime, we went downstairs to puff one cigarette and shake the stress a little bit. While we were discussing something, we heard a loud thud at the nearby building and saw one person throwing a ball high up in the air and fall right back into the ground.


Law of Gravity
What is the law of gravity in the first place. According to Encyclopedia, "Gravitation is the force of attraction, that exists between all particles with mass in the universe. It is the force of gravity which is responsible for holding objects onto the surface of planets and, with Newton's law of inertia's responsible for keeping objects in orbit around one another.""Gravity is the force that pulls you down." -- Merlin in Disney's The Sword in the Stone.  


When you throw a ball up, it will always go down. It's a law. It is universal. No matter what kind of throw you will do, a ball will always go down. Nobody can make a ball suspend in the air. You are in Antarctica, Middle East, America, India, Philippines and Africa, a ball thrown up in the air is always going down.


Likewise in stocks, when a stock price goes up, it will always goes down. Never in the history of stock market that a stock price goes up infinitely. It will always goes down. But sometimes the downward movements is so short, the investors do not even feel the effect of it once it goes up. There are a lot of factors playing out in this high low movement. I have written some of these in this blog also. For a quick view, please go to http://theofwinvestor.blogspot.com/2011/05/7-factors-that-affect-risefall-of-stock.html.


Roller Coaster
"There are risks you cannot afford to take. But there are also risks that you cannot afford not to take"- Anonymous
    
A lot of us perhaps have ridden a roller coaster. I remember when I was a kid, we normally go to Star City as part of our field trip destination. There you will find different types of rides children would normally crave for to try. It is in the excitement in trying these rides (especially if it is your first time) that are worth remembering. Oh yes, I tried the roller coaster when we went in Star City. Most of my girls classmates are afraid to try it out but being a boy who wants to impress the other kids, I gave it a go. "I can do that" I would normally say even though inside my heart I was totally scared. I would sometimes shivers in nervousness but in the end I still tried. The thrill of the up and down movement of the roller coaster coupled with the vomit inducing, praying like crazy, and gripping into a steel bar you have never done before, it was worth it. It was so exhilarating, that trying it on the second time won't be as much as scary before. The excitement is still there but nothing beats the first time experience.

When I first thought of entering the stock market, I was filled with doubts, and was totally scared that I would lose my money someday. Through the motivation of Bo Sanchez, I gave it a shot. (By the way, if you want to check the writings of Bo that inspired me financially, you can click the banner on the right side. Truly Rich Club deals mostly on financial guidance especially on stock market and wealth prosperity). My first stock is the telecom giant, PLDT. I bought it around 2100 per share and I was happy that I am now in the stock market. I thought at that time this is the beginning of the financial freedom I truly deserved. The price of PLDT  skyrocketed to 2400 and you know what, I am so happy I jumped up and down in our house,whistling like I won a lottery. Yes, that was a special moment for me that I will never forget because in the next few months, PLDT stock spiralled down to 2000 per share. Disappointment ensues, discouragement is whispering in my ear "See, stock market is not for you, this is only for the big boys". I almost quit but I studied further and strengthen my knowledge in the stock market. Being an accountant also made my life easier in analyzing these companies. Yes, I've been through the ups and downs of the stock market. I have experience losses and gains as well. Overall, my ride with the stock market has been pleasant and exciting.     


Emotional Discipline
Since I started in the stock market, I have experienced euphoria and depression. When the stock market goes up, I am ecstatic and when it goes down, panic attacks. These feelings and emotions that we experience are normal. Our brain are hardwired to release  a natural chemical called dopamine when positive news are heard or read causing a soft euphoria. On the other hand, when stocks drop it fires up your amydala, the part of the brain the processes fear and anxiety and generates the famous "flight or fight response". These feelings are just natural you can't help feeling fearful when stock prices go down. 


I heard in one audio talk given by BoSanchez in his interview with Edward Lee, the Chairman of Citiseconline, by the time the bull bear market cycle ended, 85% will lose money. These money will of course go to the taxes, stockbrokers fee, and  issuing companies. I might also add to these 85% losses is that when the stock market is high everybody is jumping into the stock market. Greed comes in and the stock market goes into unchartered territory. When it goes down and panic attacks, everybody is selling the stocks even if they are losing some money into it.


Since losses are sometimes traced on our emotions than following our investment plan, it is very important to have an emotional discipline. As Benjamin Graham (author of The Intelligent Investor book, Warren Buffet teacher) puts it, the typical investor "would be better off if his stocks had no market quotation at all, for he would then be spared the mental anguish caused him by other persons mistakes of judgment". Stick to your investment plan, use the fluctuations in the market to your advantage, not disadvantage. Warren Buffet famous philosophy "Be fearful when other are greedy and be greedy when others are fearful." is one of the best cliche I learned in stock market investing.


Strategy
Since nobody can predict the stock market perfectly, one of the strategies I used is the peso cost averaging. In this type of investing, you are just putting a portion of your salary in the stock market and buy blue chips companies every month. You don't care how much is the price of the stock because through the law of averages, a stocks bought on a higher price this month can be bought at a lower price next month.


Another one would be to buy stocks during the bear markets and sell then at bull markets. But you would be a great analyst if you will be able to predict the high and low of the stock market accurately.


Value investing on the other hand involves a tedious process of analyzing the information of a given stock but you will be able to tell if the stocks are overvalued or undervalued. In this type of strategy, you could based your decision to buy or sell based on the companys financial information.

Philippine's Listed Mining Companies

Since I have discussed gold in the previous blog "Gold Rush", I wanted now to know the mining companies in the Philppines which are listed in the Philippine Stock Exchange. Below are the mining companies I have taken in PSE website, www.pse.com.ph/. Not all of these companies are into gold production. They were just classified in the mining sector by the PSE. If you want to have an overview on how these sectors were classified, please go to 

http://www.pse.com.ph/html/ListedCompanies/guide/psesectorclassificationguide.pdf

 for more info. Pictures here courtesy of Flickr and do not represent the actual mining operations of the companies but rather a visual effect on the overall activities of a mining company.

1. ABRA MINING AND INDUSTRIAL CORPORATION

Abra Mining & Industrial Corporation (AR) was incorporated on September 28, 1964 to engage in the exploration, development, exploitation, process, manufacture, extraction, milling and sale of cement and metal concentrate, marble, building materials and other minerals such as copper, gold, silver, iron and lead. AR is also engaged in the processing and manufacture of non-metals for industrial and commercial purposes at wholesale only.

AR's business lines consist of the commercial utilization of limestone, lime, shale, silica, sand, gold, silver, copper, zinc, magnetite iron sand and other mineral deposits existing within the contract area. The Company has four approved mining claims, three of which are located in Abra and one in Ilocos Sur. However, AR has not started normal and commercial extraction of mine products as of end 2010.

2. APEX MINING CO., INC.

Apex Mining Company, Inc. (APX) was incorporated on February 26, 1970 as a company principally engaged in the business of mining and production of gold, silver, copper, lead and other precious metals. APX listed its shares publicly in 1974.

On December 22, 2005, the Mines and Geosciences Bureau (MGB) approved the Company's Mineral Production Sharing Agreement (MPSA) covering 679.02 hectares situated in Maco, Campostela Valley. On June 25, 2007, MGB approved the Company's second MPSA covering an additional 1,558.5 hectares near the same area. APX entered into a service contract with local cooperatives composed of the indigenous people and local government units of Masara lines to explore the Sagaysagay vein discovered within the area of its second MPSA in December 2008. On January 1, 2009, APX commenced commercial operations after achieving target production volume requirements.

In October 2009, Crew Gold Corporation completed its divestment in the local mining industry and sold its equity share in APX, as well as to local affiliates including Teresa Crew Gold (Philippines), Inc. and Mapula to Mindanao Gold Ltd. (Mindanao Gold), an entity incorporated and registered in Malaysia, for US$7 million. As of December 31, 2010, APX's majority shareholder is Mindanao Gold, whose ultimate parent company is Abracadabra Speculative Ventures Inc., an entity incorporated and doing business in Malaysia.

3. ATLAS CONSOLIDATED MINING AND DEVELOPMENT CORPORATION

Atlas Consolidated Mining & Development Corporation was incorporated as Masbate Consolidated and Mining Company, Inc. on March 9, 1935 as a result of the merger of assets and equities of three pre-war mining companies, namely, Masbate Consolidated Mining Company Inc., Antamok Goldfields Mining Company and IXL Mining Company. Thereafter, AT amended its articles of incorporation to reflect the present corporate name.

AT is engaged in mineral and metallic mining and exploration and development and primarily produces copper concentrates and gold with silver, magnetite and pyrites as major by-products. Its five subsidiaries and three affiliates are involved in the mining business and these are Carmen Copper Corporation, Berong Nickel Corporation, TMM Management, Inc., Ulugan Nickel Corporation, Ulugan Resources Holdings, Inc., Nickeline Resources Holdings, Inc., Atlas Exploration Inc., and Amosite Holdings Inc.

The Company organized and registered in 2005 its water subsidiary, AquAtlas, Inc. with a primary purpose of providing and supplying wholesale/bulk water to local water districts and other clients and to make available other related and value added services.

4. ATOK-BIG WEDGE CO., INC

Atok-Big Wedge Company, Inc. (AB), formerly Atok Big Wedge Mining Co., Inc., was incorporated and registered with the Securities and Exchange Commission (SEC) on September 4, 1931. Since its incorporation, the Company engaged in mining as its primary purpose, producing gold as its major product and silver as a by-product.

Although AB changed its primary purpose in 1996 from mining to general investment, it reverted back to its original purpose of engaging in exploration and development of mining, oil, gas, and other natural resources when it amended its articles of incorporation, which was approved by the SEC on May 24, 2010. AB has two wholly-owned subsidiaries, Atok Gold Mining Co., Inc. and AB Stock Transfers Corporation.

In November 2009, Boerstar Corporation, a Philippine holding company, became the controlling and majority shareholder of AB. At present, AB is exploring the possibility of entering into a business venture with local and foreign entities to maximize the potential of its mineral properties and to enhance its earnings in the very near future. It will abide by the principle of sustainable and socially acceptable mineral resources development.

5. BENGUET CORPORATION

Benguet Corporation (BC) was established on August 12, 1903 as Benguet Consolidated Mining Company. It changed its name to Benguet Consolidated, Inc. in 1956, and finally to its present corporate name in 1980. The Company explores for mines, currently produces and markets gold, refractory chromite, nickel laterite ore, limestone and aggregates; and through its subsidiaries, provides eco-tourism, engineering and construction, reforestation, trucking and warehousing services, sells industrial equipment and supplies, and develops water resources and real estate projects.

The Company reopened Benguet Gold Operations on a limited scale in 2003 through the Acupan Contract Mining Project (ACMP), developed Sta. Cruz Nickel Project in 2007, and continued to review and package its various mineral properties for future development or sale. In 2010, BC resolved a long outstanding issue with the claimowner on the Kingking Project. The Company invested in the development of the Sta. Cruz Nickel, Balatoc Tailings and Surigao Coal projects, and the expansion of ACMP. BC continues to hold interests in the Acupan Gold, Ampucao Gold Copper, Pantingan Gold, BOLCO Gold, and the Ilocos Norte and Kalinga FTAA prospects.

BC is also into healthcare services through its Benguet Laboratories trucking and warehousing through its subsidiary, Arrow Freight Corporation; trading industrial equipment and supplies through Benguetrade, Inc.; and real estate development and lime kiln operation through BMC Forestry Corporation.

6. CENTURY PEAK METAL HOLDINGS CORPORATION

Century Peak Metals Holdings Corporation (CPM) was originally incorporated as Fil-Hispano Corporation on December 30, 2003 to engage in the business of investment holding. CPM was initially a wholly-owned subsidiary of Paxys, Inc. until it divested its shareholdings in the company distributing it as property dividends to all its shareholders in January 2004. On February 15, 2008, the Securities and Exchange Commission (SEC) approved the change in the Company's corporate name to its present one. Subsequently, as well as the amendment of CPM's primary purpose to promoting, operating, managing, owning, or investing in corporations that are engaged in mining activities.

The Company has two subsidiaries, its wholly-owned subsidiary Century Peak Corporation (CPC), and its 55%-owned subsidiary, Century Hua Guang Smelting Incorporated (CGHSI). The principal activities of CPC and CGHSI is to invest in and engage in the business of operating and mining of mineral resources in the Philippines such as iron ore, copper, gold, silver, lead, manganese, chromites, nickel, etc. and prospecting, exploring, milling, concentrating, converting, smelting, treating, refining and manufacturing, and preparing for the market, whether export or domestic, and producing and dealing in all its products and by-products.

7. DIZON COPPER-SILVER MINES, INC.

izon Copper-Silver Mines, Inc. (DIZ), was incorporated on August 18, 1966 to acquire, purchase, lease, hold, work and operate mines, mining claims, grounds or lodes in the Philippines or in foreign countries.

DIZ has 57 mineral claims in Barangay Buhawen, San Marcelino, Zambales with a total area of 513 hectares. These claims were developed and operated by Benguet Corporation (BC) for 20 years under the Operating Contract entered into by and between DIZ and BC on September 6, 1975. After more than 20 years of occupation, exploration and operation of mineral claims, BC turned over its operating rights to DIZ by virtue of a Memorandum of Agreement dated November 25, 1997 following the closure of mining operations. Mining operations were forced to stop after a landslide caused by heavy rains destroyed mine infrastructures, accompanied by a sudden fall of metal prices in the world market. This made the rehabilitation of the mine facility and resumption of operations impossible.

With the suspension of its mining operations, the Company's present activities are confined to the care and maintenance of the mine site and the mining properties therein. DIZ is currently looking for a new partner to operate the mines and recover the residual gold from its tailings dam. DIZ's port facility, Port Dizon, located in Subic, Zambales may still be used as loading facility for ore and aggregates should the company resume mining operations.

8. GEOGRACE RESOURCES PHILIPPINES, INC

GEOGRACE Resources Philippines, Inc. (GEO) was incorporated as La Suerte Gold Mining Corporation (LSGMC) on April 20, 1970 primarily to engage in the mining business. In 1995, the stockholders of LSGMC approved the realignment of the Company's main business activities from that of a mining company to that of an investment holding company, and the change in the Company's name from LSGMC to Global Equities, Inc. In 2006, the Company changed its corporate name to its present name, and shifted its primary purpose back to mining and exploration of mineral resources.

GEO entered into two operating agreements covering operating mining claims with valid and subsisting Mineral Production and Sharing Agreements and a number of heads of agreement to acquire rights to explore, develop and operate mining claims. At present, the Company is operating the Ayungon mining claim in Ayungon, Negros Oriental, the Isabela mining claim in Dinapigue, Isabela, the Masbate mining claim located in the province of Masbate, and the Zambales mining claim in the province of Zambales.

9. LEPANTO CONSOLIDATED MINING COMPANY

Lepanto Consolidated Mining Company (LC) was incorporated in 1936 and operated an enargite copper mine until 1997, after which, LC shifted to gold bullion production through its Victoria Project. LC sells its gold and silver bullion production to Heraeus Ltd. (Hong Kong) while its copper concentrate production are sold through Trafigura Beheer B.V. Amsterdam and Shanghang County Jinshen Trading Co., which are metals traders based in New Jersey, USA, and Fujian, China, respectively.

LC and its subsidiaries are involved in other businesses such as hauling, diamond drilling services, insurance, and manufacture of diamond tools. LC has two Mineral Production and Sharing Agreements for areas located in Mankayan, Benguet. The Company's subsidiaries are Shipside, Inc., Diamond Drilling Corporation of the Philippines, Lepanto Investment and Development Corporation, Diamant Boart Philippines, Inc., and Far Southeast Gold Resources, Inc.

10. MANILA MINING CORPORATION

Manila Mining Corporation (MA) was incorporated on May 20, 1949 to engage in the mining and exploration of metals. MA started its mining operations in Placer, Surigao del Norte in 1981. Until 2001, MA was producing gold bullion through a carbon in-pulp plant and copper concentrates containing gold, silver and copper from MA's copper flotation plant. In July 2001, MA suspended its mining and milling operations pending receipt of the permit from the Department of Environment and Natural Resources to further elevate and operate MA's tailings pond number seven. On January 29, 2007, MA obtained the release of its Renewed Exploration Permit covering 2,462.9 hectares in Surigao del Norte.

MA has two existing Mining Lease Contracts with the government located in Surigao del Norte and three Mineral Production Sharing Agreements covering Surigao del Norte and Agusan del Norte. MA is an affiliate of Lepanto Consolidated Mining Company. MA has one wholly-owned subsidiary, the Kalayaan Copper-Gold Resources, Inc.

As of December 31, 2010, the Company has no products or services as operations are currently suspended.

11. NICKEL ASIA CORPORATION

Nickel Asia Corporation (NIKL) was incorporated on July 24, 2008 as a company primarily engaged in the business of mining of all kinds of ore, metals and minerals. On February 25, 2009, the stockholders of NIKL and Nickel Asia Corp. (Nickel Asia), a company incorporated under the laws of British Virgin Islands to acquire and hold the nickel mining and processing assets of members of the founding shareholders, approved the plan of merger between the Company and Nickel Asia. The Securities and Exchange Commission approved the merger on April 15, 2009 with NIKL as the surviving company.

On or before August 4, 2006, NIKL acquired ownership of Hinatuan Mining Corporation (HMC), 60% of the shares of Rio Tuba Nickel Mining Corporation (RTN) and 20% of the shares of Cagdianao Mining Corporation (CMC). The Company received tax free property dividends from HMC in the form of HMC's investment in subsidiaries in CMC and Taganito Mining Corporation (TMC) on November 30, 2009. The said declaration of property dividends were approved by the SEC and Bureau of Internal Revenue, giving the Company direct ownership in CMC and TMC. As a result of the reorganization, NIKL owns all of the outstanding shares of HMC and CMC, 65% of TMC and 60% of RTN.

NIKL has three more subsidiaries namely, Falck Exp. Inc., La Costa Shipping and Lighterage Corporation, and Samar Nickel Mining Resources Corporation. NIKL is the largest nickel mining company in the Philippines and also one of the largest global suppliers of lateritic nickel ore from its operating mines in Surigao del Norte, Dinagat Island and Palawan.

12. NIHAO MINERAL RESOURCES INTERNATIONAL, INC.

Formerly Magnum Holdings, Inc., NiHAO Mineral Resources International, Inc. (NI) was incorporated on July 9, 1975. On June 28, 2007, the SEC approved the change in the Company's primary purpose from a holding company to that of exploration, development and operation of mineral properties and the mining of metallic and non-metallic minerals. The Company also subsequently changed its corporate name to NiHAO Mineral Resources International, Inc.

NI is engaged in mineral exploration, development, and production with focus on nickel laterite projects. As of December 31, 2009, NI has four mining claims located in the provinces of Zambales, Misamis Oriental, North Cotabato, and Antique. The Company also operates three small-scale mining claims in Botolan, Zambales and one in Manticao, Misamis Oriental. All of NI's mining claims cover a total of approximately 20,841 hectares.

The Company's subsidiaries and affiliates consist of Mina Tierra Gracia, Inc., Visayas Ore Philippines, Inc., Bountiful Geomines, Inc., Companhia Nube Minerale, Inc., Companhia Minera Tierra, Inc. and Minedomain, Inc.

13. OMICO CORPORATION

Omico Corporation (OM) was incorporated on August 30, 1968 to operate, prospect, mine and deal with all kinds of ores, metals and minerals. The Itogon Gold Project of OM lies within the Baguio gold district, in the municipality of Itogon, Benguet. The property is prospective for both low-sulfidation epithermal vein gold mineralization and underlying porphyry Cu-Au mineralization. OM has previously undertaken small-scale underground mining and underground development on the property. On April 8, 2009, the Company signed a Mineral Production Sharing Agreement with the Department of Environment and Natural Resources for the Itogon project.

OM has also expanded its business scope and diversified its operations into property investment and development of low-cost subdivision housing units with OM as landowner and the joint venture partner as developer. The Company's Sta. Rosa Homes project, a residential undertaking comprised of 1,071 housing units, is currently ongoing and expected to be completed within five years from 2006 to 2010. OM also has a joint venture agreement on property development with Robinsons Homes, Inc. as developer, whereby OM contributed three parcels of land located in Tagaytay City. Robinsons Homes will develop on the said property a high-density two-phase residential subdivision, consisting of five 5-storey residential condominium buildings. OM also has an agreement with Sta. Lucia Realty and Development, Inc., Asian Pacific Estates Development Corporation (APEDC) and Asian Empire Corporation (AEC), whereby Sta. Lucia will develop into residential and commercial subdivisions the parcel of lands situated at Pinmaludpod, Urdaneta and owned by OM, APEDC and AEC.

14. ORIENTAL PENINSULA RESOURCES GROUP, INC.

Oriental Peninsula Resources Group, Inc. (ORE) was incorporated on April 16, 2007 as a holding company intended primarily to consolidate and operate companies that own mining tenements located within the Philippines.

ORE is focused on the mining operations of its subsidiary, Citinickel Mines and Development Corporation (CMDC). Currently, the Company has a 94% equity interest in CMDC, which is the sole claim owner of the Pulot Mine and the Toronto Mine located in the Province of Palawan, namely in the municipalities of Sofronio Espanola and Narra. CMDC is presently collaborating with international affiliates in pursuing the extraction of ore reserves and sustainable development of mineral resources within the widely known Palawan ophiolite zone.

15. PHILEX MINING CORPORATION

Philex Mining Corporation (PX) was incorporated on July 19, 1955 to primarily engage in mining activities. The Company and its subsidiaries are organized into two main business groupings: the mining business under the Philex Mining Corporation, and the oil and gas business under the Philex Petroleum Corporation (PPC).

PX currently has the Padcal Mine in Benguet as its only operating segment. The Padcal Mine is on its 53rd year of operation producing gold, copper and silver as principal products.

The Company has long been a silent investor in oil properties owning participation in several service contracts. In 2007, PX incorporated PPC to engage in petroenergy business, of which 49% was subsequently acquired by Anatolian Property BV (APB), a Netherlands company whose shareholders are funds-managed by Ashmore Investment Management Limited. In July 2009, PX repurchased APB's interest and gained full control over PPC. In September 2010, PX transferred its investments in energy assets to PPC which holds 38.82% of Forum Energy plc, a UK-based oil exploration company owning participation interest in several service contracts in the Philippines, particularly in northwestern Palawan.

16. SEMIRARA MINING CORPORATION

Semirara Mining Corporation (SCC) was incorporated on February 26, 1980 to explore, develop, and mine the coal resources in Semirara Island located in Caluya, Antique. The Company executed a coal operating contract with the Department of Energy in 1977 (amended 1981) for the exploration, development, mining and utilization of coal in Semirara Island, which has an estimated coal reserve of 150 million metric tons.

SCC generates majority of its revenues through the production of sub-bituminous coal, with additional revenues coming from coal handling services at the Calaca Power Plants of the National Power Corporation.

SCC is a majority-owned subsidiary of DMCI Holdings, Inc.

17. UNITED PARAGON MINING CORPORATION

United Paragon Mining Corporation (UPM) is a Philippine corporation whose main business is the exploration, development, exploitation, recovery and sale of gold. UPM was the result of a merger in 1989 between United Asia and Geothermal Resources (UAR) and Abcar Paragon Mining Corporation, in which UAR became the surviving entity. UAR was then renamed in 1990 as United Paragon Mining Corporation.

UPM's principal mining operation is the Longos Mine at Paracale, Camarines Norte. The Company operated an open pit area in the mine from August 1988 to June 1994, and by April 1994, UPM began the commercial operations of the underground mine at the same site. However, it was placed under care and maintenance in December 1998 because of serious depletion of economic reserves, high operating costs and low metal prices. In November 2003, the Company decided to suspend further drilling in Longos. There were no gold and silver recovered in the years 2006 to 2009 since UPM's mining and milling operations are still suspended.

Another prospective area for UPM's exploration is San Mauricio located in Jose Panganiban. The Company has plans of continuing exploration drilling in San Mauricio once the necessary clearance from the Department of Environment and Natural Resources (DENR) is secured. UPM is in the process of finding a strategic partner/ investor and/ or creditor to help finance the amount required for the rehabilitation and further development of Longos Mine.

Gold Rush?

Today, I went together with my great friend who wanted to exchange his gold coin in a jewelry shop. We drove to Satwa where Damas is accepting gold coins in exchange for cash. The gold coin is worth 5,500 dirhams (66,000 pesos). He bought it last January 2010 at a price of 4,300 dirhams (51,600 pesos). He made a profit of 1,200 dirhams (14,400 pesos), a staggering 28% profit. If he bought a million pesos worth of gold, he could have earned 280,000 pesos in just 1 1/2 year.


<sup>After a few discussion with him, I told him that I would consider gold in my investment portfolio and will give it a shot. What he did was just a simple buy and sell. He bought it in a jewelry store, paid it, and store it in a safe place. After more than a year, he just went to the jewelry store, sold it to them at current price less charges, then walk away with a profit of 28%. It is very simple that what you are going to do is just hold the gold until you need the money for personal or investment diversification and sold it. The big difference here of course is the profit. In banks, you will not earn a 28% interest in 1 1/2 year  isn't? Here you can as clearly demonstrated by my friend.

When you buy a gold for investment, it must be a coin, a biscuit (small bar) or a bar. These type</sup> of gold when sold back again to the jewelry shop will have a higher selling value than personal jewelries like necklace, earrings, rings, etc. Also, the charges is lower for the gold coins, biscuits,or a bar in comparison against personal jewelries. One of the important things you need to do is that you MUST need to ask the jewelry shop if they are accepting gold when you are selling it to them. Not all jewelry shops are buying back the gold you bought to them. Also, the receipt is very important in selling back the gold to the jewelry shop.

^{While my friend had profited in gold, is it still viable to invest in it? Do you think gold has reached it's peak?Let us take a look at the price of the gold. Below is a chart taken from Gold Price1. If you noticed in the chart, the price of gold had increased dramatically in the last five years.} The price has always been increasing except in year 2008 when US was hit by the subprime crisis. What I see in the chart is that the gold price has always been appreciating and in five years time, the price almost tripled in value.


<sup>Why do the gold keeps increasing? What are the factors affecting its price? Like most commodities, the price of gold is driven by supply and demand as well as speculation.

Law of Supply and Demand
Remember the Law of Supply and Demand? When the supply is limited but the buyers (demand) are plenty, the tendency of the price is to go up. On the other hand, when the buyers(demand) are plenty and the supply is limited, the tendency of the price is to go down.

Jewelry Demand
Two thirds of the demand comes from jewelry. India (called the heart of gold) is the largest consumer of gold in terms of volume accounted for jewelry demand. China is also increasing its consumption of gold and in some countries as well. Bullish price expectations and domestic inflation concerns, coupled with stronger currencies help to drive demand for both India and China.
 (2)(3)</sup>


Investment Demand
Since 2003, investment demand has been the constant source of strong growth. In 2009 alone, investment in gold attracted $41 billion. There are a lot of factors why people are investing in gold. Investors believed that demand will outstrip supply, thus price will always increase. Also, investors believed that gold has the ability to withstand instability and risk.²



Technological Demand
Industrial, medical and dental technology demand is around 12% of the total global demand. Since gold has a very high thermal conductivity, half of the industrial demand arises due to use of electrical components.² . We are seeing an explosion of interest in the use of gold in science and technology. Exciting breakthroughs are occurring regularly within some of the world’s leading academic and industrial institutions.⁽⁴⁾⁽⁵⁾




Supply


Mine Production Supply
When gold is being extracted from the mine field, it takes an average of 10 years before it will be place in the market. Also, when new mines are developed, they don't expand the current levels of global production but instead they replace the current production. For the past several years, average global mine production is 2497 per year.² 


Recycled Gold Supply
Gold can be recycled through sorting, smelting then reformed again into various shapes for selling to the market. When gold is recycled, it normally becomes liquid upon reaching its melting point. It undergoes under a very high and controlled heat. Recycled gold can be as useful as the day it was mined.⁽⁶⁾⁽⁷⁾


Central Bank Supply
Central banks and international organisations like IMF owns 20% of the above ground gold as their reserve assets. While on average, the governments hold around 10% of their reserves in gold, they are net seller of gold to the market. However, in 2009 the governments has drastically changed from being a net seller into a net buyer. Western Europe and Northern America hold an average of 50% in gold for their external reserves.²

Conclusion: 
Governments are now increasing their gold reserves. Investors continue to gulp a big chunk of gold supply. India's economy continues to grow and gold has been part of their culture. China's growing economy and other countries continues to buy a lot of gold. Breakthroughs in science and technology also will consume gold. Since gold production takes time before it can be sold to market, the demand may outstrip the supply especially now that the central banks are net buyers instead of net sellers.


Once my salary comes next month, I will buy one.

¹http://www.goldprice.org/spot-gold.html
²http://www.gold.org/investment/why_how_and_where/why_invest/demand_and_supply/
³http://www.gold.org/investment/research/regular_reports/gold_demand_trends/
⁴http://www.gold.org/technology/innovation/whats_new/
⁵http://www.gold.org/technology/uses/
⁶http://www.electronicscrap.umicore.com/process/
⁷http://xrgoldrate.com/Gold_Recycling.html

Vista Land (VLL) at a Bargain Price?

General Information
Vista Land and Lifescapes, Inc. was incorporated in the Republic of the Philippines and registered with SEC, on February 8, 2007. VLL is the holding company of the Vista Group which comprises:
1. Camella Homes and subsidiaries - caters to mid to low end of the market
2. Brittany Corporation-caters to high end segment of the market
3. Crown Asia Properties, Inc-caters to upper middle income market
4. Communities Philippines, Inc.- caters to markets outside Metro Manila and offers residential units.
5. Vista Residences, Inc.-caters to development and selling of vertical projects across the Philippines.

VLL is engaged mainly in the development of residential subdivisions and construction of housing units and condominium. It offers a wide range of product from socialized or affordable housing to middle income and high end house and lots, and condo projects.

Return on Assets (ROA) 1.4%
ROA is computed by dividing the net income against the Total assets. It measures the Company's earnings against the resources it has at it's disposal.

Return on Equity (ROE)2.2%
ROE is computed by dividing the net income against the total equity. It measures the Company's earnings against it's owners money.

Current Ratio 2.89:1
Current ratio is obtained by dividing the current assets against current liabilities. It is used to test the Company's liquidity. The current ratio of VLL is good. It has the ability to pay it's short term liabilities without any sweat because it has almost 3 times ability to pay the current liabilities.

Debt to Equity Ratio .57:1
Debt to equity ratio is obtained by dividing the total liabilities against total equity. It determines the company's borrowing capacity. It also magnifies the ratio on how the company is financing the business in terms of loans and ownership. VLL has a favorable debt to equity ratio because the company is using more money from the owners than from the bank. As we know, bank loans are a little bit higher to finance because of interest expense.

Senator Manny Villar
VLL is owned by Manny Villar and his family according to Wikipedia and Inquirer. As we all know, Sen. Manny became one of Philippines wealthiest person because of real estate. VLL is the largest homebuilder in the Philippines.

P:E ratio 7.5:1
The price earnings ratio is obtained by dividing market share price against earnings per share. According to Investopedia, A stock with a high P/E ratio suggests that investors are expecting higher earnings growth in the future compared to the overall market, as investors are paying more for today's earnings in anticipation of future earnings growth. Hence, as a generalization, stocks with this characteristic are considered to be growth stocks. Conversely, a stock with a low P/E ratio suggests that investors have more modest expectations for its future growth compared to the market as a whole.

The P/E ratio of VLL is one of the lowest among the listed real estate companies. The advantage of this is that once the company's earnings soar in future years, you could earn handsomely because it's stock price will rise. On the other hand, the drawback on a low P/E ratio is that the investors are seeing a modest growth in the company's earnings potential. Based on a limited study, ,VLL's revenues and net income increased as compared to last year. It can have the momentum of growing further and benefit from the strong property market. I think the current share price of VLL is cheap.

Buyback program
Yesterday, VLL announced that it will buy back 1.5 billion of shares because they believed that the share price is undervalued. VLL said that the recent stellar performance of the

company and it's bright future prospects, the management considered it appropriate to buy back it's shares because it is undervalued. Given the company's confidence in meeting it's own internal targets and that 2011 will be a record year, I believe it will be worthwhile to take a look in this company as part of your stock portfolio.

BUY Recommendation
Various stockbrokers including Credit Lyonnaise, Duetsche Bank, Citiseconline, Philippine Equity Partners, Credit Suisse, UBS have analyzed VLL financial condition and operation and have issued a BUY recommendation.

Conclusion
After checking the Price Earnings of other real estate listed in the stock market, VLL is on the bottom part but I believe that sooner the correct fair value of the company will reflect in the market. The recent buy back of the Company and the management's confidence in their own internal processes and financial condition, reflects the company's belief that it's share price is grossly undervalued. The current ratio is very strong, and the longterm debt are manageable. 2011 could be a record year and given the hot property market still soaring, VLL can capitalize on this. It is a cash rich company and it's subdivisions are well known throughout the country.

The ratios and key performance indicators I mentioned above were based from 1st quarter 2011 reports. It's latest financial reports strongly suggests that VLL is undervalued and is currently selling at a bargain.

The prospects are good and I'm seeing a midnight sale in PSE and I'm going to grab as much items as I can. Hopefully when my salary will come this month, the midnight sale will still be
there!

Hold Your Horses!

Bloody red Monday!

The stock market fell down further and most of the stocks decline. Phisix went down to 4170! Obviously, this is expected in a healthy stock market. In the normal cycle of the stock market, it will go up a certain period of time and then it will go down again. It is just a cycle, a cycle where if you are smart to buy in the low and sell in the high, you will profit handsomely.

Today's bloody red Monday is just one of those down moments of the stock market. Nothing unusual actually. The stock investors are just taking profit from the highs and stay in the background until the stock market will go up again. Some investors also sold their stocks portfolio and wait until further signs of upswing trend. Some investors who bought while the stock is going up and then sold it when it went down might have incurred losses. This is what we will try to avoid. If you invest while the stock market is going up and then wait until it reaches the highest point which of course nobody knows, the fearful investor might end up selling his stock when the panic attacks. Yes, in stock market, emotional discipline is
needed. It is actually a requirement for every person wishing to invest in the stock market.
Although nobody has perfected the right timings when to invest and sell in the stock market, there are calculated risks an investor must take.

Factoring the expertise of others that you have consulted, it is only you and your analysis that you must consider in investing in the stock market. Yes, you may consult your stockbroker for good stocks to buy, and your mentor for the right timings to buy, but it will still be your decision that matters most. You need to make your own due diligence in the stocks being recommended and the timings being suggested. I remember the story of a fund manager during the early 2000 when his hedge fund profited more than 200% in a year. He said that the Internet stocks are the companies that will grow most for the rest of the century. Some investors believed in him. Two years later, the stocks went down and he lost most of his wealth including clients. Your decision is the best decision you will ever consider from differing opinions.

Experience they say is a great teacher. Yes that is true and that is applicable to stock market also. I have experience losses and gains as well and I experienced it as early as possible so that it will benefit me earlier. One of those experiences is that I needed to have the discipline to stick with my principles in the stock market so that i can profit very well. A good example will be the stocks I bought when the stock market is up and then sold it when it is going down. If only I have waited for the next up trend of the stock market, I could have profit handsomely. This and other matters are kept in the learning vault which were
safely stuck in the corner of my mind.

Today is a bloody red Monday and it reminds of the fundamentals of the stock market. It will slide down further I think until it will reverse back to the up trend. Maybe tomorrow it will go up but nobody knows actually. What I know is that when the stock market begins to slide down, it will slide down further. Now, I will wait for further down moments of the stock market until it bottoms up. Actually, I am just predicting it because of the current negative global issues surrounding our world. Once it reaches the threshold of the bottom and signs of recovery are there, I will start to plunge in. My plan is to buy a big bulk of it with my monthly savings not yet tied in the stock market and then sell it in the last quarter.

I know it will go down but I will not touch my current portfolio just to avail of the bargain currently we have in the stock market. I will stick with them until the opportunity will come
in the last quarter.

Yes, I'm holding all my horses now, patiently tugging along with other riders until that final turn where I am about to take my stride a notch higher than the previous turns.


"There are risks you cannot afford to take and there are also risks that you cannot afford not to take".

We Will Ride This Slide All the Way Down!

Two days ago, I bought ALI(Ayala Land) and FPH(First Philippine Holdings). These stocks are going down and may even go down further until the investors will go out of their cave and plunge again in the stock market. The investors are a bit cautious on what is happening in Europe's debt crisis,and US weak economic data.

Even with the underspending of the government in the 1st quarter, our economy has posted a modest 4.9% growth. Actually, the income of the government through taxes, fees, duties, etc in the 1st quarter is bigger than the expenses. We have a surplus in budget. Because of these excesses in the the budget, the government is planning to dramatically increase the spending in infrastructures in the 2nd half of 2011. This will somehow help in achieving the 7 to 8% target set by our government officials.

This month, we have seen the stocks slide down. SCC which I bought at 220, and 214 respectively is now trading at 203. If I am going to sell them today, I will lose money. Fortunately, stock market is just a cycle. A cycle of ups and downs. With the current price of the stocks right now, most of them are trading at a discount. ALI which is selling at 18 plus last month is now selling for 15. The bargain hunters like me are on the hunt and are trying to put up additional funds in this fearful market conditions. I always remember what Warren Buffet said in his book, be fearful when others are greedy and be greedy when others are fearful. Today, the investors are fearful and it's the time to be greedy. Few investors will plunge in because of the uncertainty of the global economy but if you are optimistic on the fundamentals of our economy, most likely you will ignore the noise outside.

The noise outside are what really drives the investors to sell. And we don't blame them because that is a normal reaction when someone invested his money. On the other hand, we must
ignore our emotional swings upon reading one news after another because we might end up in a loss. Yes, stock market winners are people who stick with the fundamentals. People who stick with their own research and thinking. I have seen last Feb 2011 how awful my money in the stock market looks like. If I sold my stocks at that time, I would have lost 20,000 pesos. And yet I stick with my stocks looking very optimistic that the stock market will soon go up. And yes, the wait has paid off. Last April, the stocks started to go up like an airplane taking off from the tarmac. I ended up taking a 40,000 pesos profit when I sold them.
In the midst of May, the stock market is going down again and I am on the prowl looking for stocks being sold at a bargain. Mind you, I am not talking about penny stocks. What I'm looking for stocks are blue chip companies, or emerging companies with potential to become a blue chip company.

I have a great colleague who also tried the stock market. We have been discussing the pros and cons of the stock market before and eventually he decided to give it a try. He bought stocks upon seeing the rising stock market in their own country. In just a few weeks, the stock market in their country went down dramatically. He started to question the viability of investing in the stock market. He started questioning the investors, the traders and the volatility of the stock market. He sold most of his stocks incurring a loss and not bothering to invest again. He said that he will just concentrate in real estate from which I did not object.

First experience in the stock market with a stagerring loss will deprive you with sleep. It will become stressful for you especially if you are just trying to give it a shot. Based on my experience, I would suggest that you buy when the market is down so that when it goes up, you can sell at a profit. This will provide positive feelings that hopefully will translate into a routininary savings in the market instead of the banks. However, do not be carried away by your profit because there will come a time that the market will be in a long downward movement which will require your patience and discipline.

Since I plunge into the stock market and learned the fundamentals, I never stop enhancing my knowledge. Every purchase is a learning experience for me and I take that into account when buying in stocks in the future. With our current state of economy, I am very optimistic in the stock market. Under the Aquino administration, investors are flocking in our economy. We are a money magnet from foreign investors. Our economy is very alive, the government has been ticking the right buttons here and there, and with next five years, the stock market will be on a roll. This will be the best legacy that Pnoy will leave after his presidency.

With the next three years or less, I have a target of how much I will earn in the stock market. I believe it will happen and it will happen sooner. I just need to be faithful in
doing the right thing.

The Resilient Philippine Stock Market!

The Philippine's stock market has withstand the global forces that dragged the stock markets around the world down.

How come our stock market is resilient?

Local Economy
According to National Statistical Coordination Board, underspending by the government and the slowdown in global trade constricted the economy to a lower growth in the now 2000-based GDP of 4.9 percent in the first quarter from the election stimulated 8.4 percent last year.

On the demand side, the growth came mainly from increased investments in fixed capital formation particularly durable equipment and Household spending. Total Exports, valued at P 735.4 billion pesos fell behind Total Imports valued at P 873.1 billion pesos at current prices, resulting to a trade deficit of 137.7 billion pesos.

The above 1st quarter result of our economy is very modest. Although our government expects the GDP in Year 2011 around 7 to 8% before the Middle East tension and Japan nuclear earthquake, I think the GDP will increase in the 2nd half of the year. In fact, Standard Chartered revised it's GDP forecast in our country from 5.4 to 5.7%. World Bank also retained it's GDP forecast of 5% in our country.

The main drivers of the 2nd half GDP growth will be the government spending and the flow of investment in the country. The government will launch 10 PPP this year on infrastructure related projects. Having a portfolio in construction companies will be beneficial I think comes the 2nd half of the year because of these PPP. The costs of these PPP are big and if one company bags one of the PPP projects, it will surely hike it's stock price. An example of PPP is the C6 Expressway and Global link which is a circumferential road traversing Metro Manila to outer urban areas. It is 50 km long and 4 lane expressway worth a cool 1.2 billion dollars.
If a foreign company bags the project, that company will throw money to construct the project and the money will be classified as foreign investment. According to DPWH, it has an aggressive program under the Aquino administration that will costs 12 billion dollars. This includes toll road projects, urban mass rail transit, airport and seaport projects which will be implemented until 2016.

What are PPP's anyway? PPP according to Wikipedia, Public–private partnership (PPP) is
a venture between government and a private business which is funded and operated through a partnership of government and one or more private sector companies.

Little Exposure to Europe
Much has been said about Europe's debt crisis. Our stock market has somehow withstand these news overseas as the trading is sideways. Our banking system has a minimal exposure to Europe, thus any impending crisis in the debt of Greece and other debt ridden European countries will likely be ignored. The impact these debt crises has on Philippines is on the export sector. Imagine if Greece will default and their economy went cold, some companies may close down and if one of those companies close down and we have an export materials to that company, we will be affected.

We now live in a global economy where one improbable event of one country could have a disastrous effect on the global economy. We are all intertwined with one another. Anyhow, we are safe here.

Rebuilding Efforts in Japan
Japan is our biggest trading partner right now. Since their country is recovering and needing a lot of Infrastructure and goods to stand up again, we might benefit from them immensely especially if they requires our services.

OFW Remittances
The unsung heroes of our country. According to BSP, OFW remittances for the 1st quarter totaled 4.6 billion dollars. Despite the tensions in Middle East, Japan tsunami and weak growth in US, remittances posted a 5.9% increase compared to last year. As the global economy stabilizes, more Filipinos will be deployed across the globe and remittances will increase further. These remittances helps our economy to thrive in this uncertain world.

Conclusion
Our economy is growing. While the US and western countries growth are minimal, we are experiencing a boom in our economy. In fact, we are ranked 46th in the world in the GDP nominal as of last year according to IMF. Our GDP for the 1st quarter is 4.9%, bigger than that of Thailand at 3%, Korea at 4.2% and Malaysia at 4.6%. Our GDP is still expected to top at 7 to 8% according to government officials because of the PPP that will start in 2nd half. Consumption remains buoyant also. I think 2nd half will be better than the 1st half mainly because of governments PPP. Also, consumption before Christmas drives up the GDP higher. Overall, the fundamentals of our economy remans strong and if you are investing in the stock market, it might be a good decision to buy right now to benefit in the 2nd half. Right now, the stocks are going down and are cheaper.

Happy investing!