What Stocks Can You Buy for 5,000 Pesos at Philippine Stock Market?

There are two ways to buy stocks in the stock market. One is by buying through Oddlot and the other one is through Boardlot.

Boardlot – If you want to buy PLDT whose board lot is 5, the shares must be divisible by 5. Meaning, you can only buy PLDT shares at 5 shares or 10 shares or 15 shares or 20 shares or 25 shares and so on and so forth. You cannot buy PLDT at 4 shares or 6 shares or 9 shares or 12 shares because they are not divisible by 5.

Boardlot is also the minimum price you can buy for the stock. For example, the price of PLDT is 2,2994 pesos per stock as of today, since the boardlot is 5, the minimum price for PLDT is 11,470 pesos. In this case, if your money is 5,000 pesos only, you cannot but PLDT today.

Based on the 30 companies included in the Philippine Stock Index below, you cannot buy Globe, SM Investments and PLDT shares (yellow highlight) if your money is 5,000 pesos only. The good news is you can buy the rest of the companies with your 5,000 pesos.

SECURITY NAME	SYM	BOARD LOT	PRICES	Amount (Php)
AYALA CORPORATION	AC	10	300.8	3,008.00
ABOITIZ EQUITY VENTURES, INC.	AEV	100	39.30	3,930.00
ALLIANCE GLOBAL GROUP, INC.	AGI	100	10.14	1,014.00
AYALA LAND, INC.	ALI	100	15.30	1,530.00
ABOITIZ POWER CORPORATION	AP	100	30.00	3,000.00
BANCO DE ORO UNIBANK, INC.	BDO	10	56.00	560.00
BELLE CORPORATION	BEL	1000	4.02	4,020.00
BANK OF THE PHILIPPINE ISLANDS	BPI	10	56.70	567.00
CEBU AIR, INC.	CEB	10	79.90	799.00
DMCI HOLDINGS, INC.	DMC	100	36.50	3,650.00
ENERGY DEVELOPMENT CORPORATION	EDC	100	6.06	606.00
FIRST GEN CORPORATION	FGEN	100	14.20	1,420.00
GLOBE TELECOM, INC.	GLO	10	926.00	9,260.00
INTERNATIONAL CONTAINER TERMINAL SERVICES, INC.	ICT	10	50.65	506.50
JOLLIBEE FOODS CORPORATION	JFC	10	88.80	888.00
JG SUMMIT HOLDINGS, INC.	JGS	100	23.80	2,380.00
METROPOLITAN BANK & TRUST CO.	MBT	10	69.30	693.00
MEGAWORLD CORPORATION	MEG	1000	1.85	1,850.00
MANILA ELECTRIC COMPANY	MER	10	256.00	2,560.00
METRO PACIFIC INVESTMENTS CORPORATION	MPI	1000	3.16	3,160.00
MANILA WATER COMPANY, INC.	MWC	100	19.76	1,976.00
PHILE  MINING CORPORATION	PX	100	23.75	2,375.00
ROBINSONS LAND CORPORATION	RLC	100	12.16	1,216.00
SEMIRARA MINING CORPORATION	SCC	10	207.40	2,074.00
SM INVESTMENTS CORPORATION	SM	10	531.00	5,310.00
SAN MIGUEL CORPORATION	SMC	10	122.00	1,220.00
SM DEVELOPMENT CORPORATION	SMDC	100	8.44	844.00
SM PRIME HOLDINGS, INC.	SMPH	100	12.20	1,220.00
PHILIPPINE LONG DISTANCE TELEPHONE COMPANY "Common"	TEL	5	2,294.00	11,470.00
UNIVERSAL ROBINA CORPORATION	URC	100	43.00	4,300.00

 Generally, investors and traders are buying stocks in boardlot tranches because they are easier to sell and trade.

Oddlot – if you want to buy 4 PLDT shares, you cannot do that because the price of PLDT which is 2,294 pessos is more than 1,000 pesos and it falls under the minimum board lot of 5 shares as you can see below. Boardlots are being determined by the current price of the stock. See below.  

Very few investors buy through oddlots. Stocks sold at boardlots are easier to sell than oddlot stocks.

My recommendation with your 5,000 pesos is you buy companies whose minimum board lot is less than 5,000 pesos. Based on the stocks listed above, you can choose 27 companies whose board lot amount is less than 5,000 pesos. Avoid oddlots purchases as much as possible because  they are a little bit hard to sell.

If stock price is 1000 pesos or more	Board lot is 5
If stock price is between 50 and 1000 pesos	Board lot is 10
If stock price is between 5 and 50 pesos	Board lot is 100
If stock price is between 50 centavos and 5 pesos	Board lot is 1000
If stock price is between 5 centavos and 50 centavos	Board lot is 10,000
If stock price is between 1 centavos and 5 centavos	Board lot is 1,000,000

Factors That Bring Inertia

http://www.flickr.com/photos/48540379@N02/4743434817

First and foremost is to introspect, and this literally means that you take stock of your traits and habits.

Often, lack of self-analysis is the cause of our short fall, and it is the lack of definite, undivided effort and attention that stands in your way to progress and achievement of your desired goal.

Introspection therefore means reassessment of our mental ‘block’ and diagnosing deficiencies by weeding out negative tendencies in the form of habits, indecisiveness, fear, lack of confidence and so on – what we often term as failures.

It is time to reenergize so that by uprooting all these negativities from your life the true happiness with the zeal to progress becomes prominent and firmly rooted.

The greatest enemy that stops us from advancing in life other than apathy, lack of confidence and inferiority complex is FEAR. Fear will literally stop us from moving forward – in fact we will not even fulfill our very aim to succeed. The best way to combat fear is to practice deep breathing exercises, and every night mentally affirm that you are under the protection of the supreme personality of godhead, and energize your thoughts with positive feelings.

Consciously uproot the seeds of fear from within by forceful concentration upon courage, and shift your awareness to a level that allows you to fully appreciate that you are beyond any type or kind of hurting. Fear comes from the heart, so fill your heart with LOVE, and when you feel agitated relax, calm down and breathe rhythmically, relaxing with each exhalation.

Of course there is yet another problem, which I believe, is the major cause of frustration and subsequently dampening our ability to excel in life. It is, what I call ‘desirous of results without the will to put in the effort’. I have personally failed because of such a negative outlook – and I am the first one to admit this openly.
Now this is where the point I made above becomes clearer. Failure, sorrow, illness and inadequacies are natural eventualities when the Law of Nature is broken.

Transgression and violation of the eternal Law of nature brings misery. As human beings we have the abilities to shape, correct and change our lives, goals and destiny.

The greatest impediment that you will ever meet in your life is your immediate environment. If anything you will have to change that – you may have noticed that I started this blog sounding slightly cynical and somewhat over cautious, much less a little negative – the prime reason for this will now become apparent.

The environment that I just mentioned can be defined into two, namely the inner and the outer. It is these two fields of environment that you will have to watch out for.

http://www.flickr.com/photos/14696088@N04/1606128341

All your experiences come from your mind stuff – or the inner environment (thoughts). What you perceive through all your senses from the outside will equally shape your future.

Thus the important point here is to keep watch over your thoughts. My suggestion to you is to beware of your inner environment more so than your outer environment. For example you may have stumbled upon a great home business opportunity that is potentially superb and just right for you in every aspect.

You are happy, and quite willing to give it a go…yet in retrospect something about this business ‘stops’ you from going ahead with it. There may be several reasons for this, but I am very curious to learn the major reason. Rest assured it cannot be the money (because it is within your budget), nor can it be a hype (because it has apparently worked for thousands with testimonials to confirm).

So what is it I wonder? Think about this point, and you will no doubt come to a favorable conclusion…and surprisingly it is, the mind stuff – the perpetrator.

To succeed in life you will have to begin by correcting your thought patterns, because it is the company of your thoughts and the affinity you have for them that will determine your fate.

“Thoughts express through the physical body.”

Stock Market Terms and Definitions 2

In the previous blog, we have discussed some of the stock market terms and definitions. These stock market terms like Closing Price,Target Price, Outstanding Shares, Market Capitalization, Sales, Net Profit, Earnings Per Share, Net Profit Margin, PE Ratio, Dividend Yield, Price to Book value, ROE can be seen in http://theofwinvestor.blogspot.com/2011/07/stock-market-terms-and-definitions.html

We will continue with the definition of other stock market terms. Here we go.

Common Stock - A security that represents ownership in a corporation. Holders of common stock exercise control by electing a board of directors and voting on corporate policy. Common stockholders are on the bottom of the priority ladder for ownership structure. In the event of liquidation, common shareholders have rights to a company's assets only after bondholders, preferred shareholders and other debtholders have been paid in full. 

Example: Randy Corporation issued 1,000 common stock to you and 1,000 preferred stock to your sister. In this case, since you are the owners of the common stock of Randy Corporation, you can vote on company policies and board of directors that will represent you in the company. Your sister on the other hand is not entitled to vote on company policies and board of directors.

Preferred Stock - Also known as "preferred shares". A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock. Preferred stock generally has a dividend that must be paid out before dividends to common stockholders and the shares usually do not have voting rights. 

Example: Randy Corporation issued 1,000 common stock to you and 1,000 preferred stock to your sister. The company became successful and you decided to declare dividends (remember, you are the owner of the common stock and as such is entitled to direct the company policies). In this case, your sister must be paid out first from these dividends before you can pay yourself.

After ten years, Randy Corporation went bankrupt because of mismanagement. In this case, your sister who owns the preferred stock must be paid first from the sale of assets before you can pay yourself.

In the Philippine's stock market, things are changing. Recently, PLDT issued preferred voting shares which can vote on the election of board of directors.

Which one is better, common stock or preferred stock?

I think common stock appreciates more than the preferred stock in terms of share prices. Investors tend to buy these type of stock than the preferred stock. Common stock normally outperforms the preferred stock in the long-run. Sometimes there are companies that issue 10% dividends of the net income to preferred stocks. For example, Randy Corporation has 1,000,000 net income for the Year 2010. In this case, 100,000 (1,000,000x10%) must be paid to the preferred stockholders. 

All my stocks right now are common stocks because some companies have common stock only and if the company has preferred stock, the share price of preferred stock normally is way behind the price of common stock.

Value Investing - The strategy of selecting stocks that trade for less than their intrinsic values. Value investors actively seek stocks of companies that they believe the market has undervalued. They believe the market overreacts to good and bad news, resulting in stock price movements that do not correspond with the company's long-term fundamentals. The result is an opportunity for value investors to profit by buying when the price is deflated.

A good example of this is VLL Company. Out of the many property developers listed in the stock market, VLL has the lowest price to earnings ratio. It means that investors are not keen in buying VLL's stock although it is a good buy. I bought VLL last week because i believe that it is undervalued and that in just a matter of time before the price will shoot up.

That's it for the meantime. Happy Investing!

Stock Market Terms and Definitions

Closing Price - Last traded market price for the company or index for that day. 


Example: Ayala Land was traded between 15 to 16 yesterday. When the stock market closed at 12:10 nn, the price of Ayala Land is 15.5, then the closing price of Ayala Land is 15.5.


Target Price - Target price is a company's estimated worth or fair market value as computed by various ways specific to its industry (i.e DCF, NAV, P/BV, PER). 



Example:Ayala Land is currently trading at 15 per share. Analysts will estimate how much will be the price of Ayala Land in the future.


Outstanding Shares - Also referred to as Issued Shares, this number acknowledges the number of shares currently held by shareholders. This includes shares held by public and those restricted or held by the company's officials and insiders. 


Example: I incorporate a company with 100,000 shares, out of these 100,000 shares, I only paid 5,000 shares. That 5000 shares is called Outstanding Shares.

Market Capitalization - Market Capitalization is computed by multiplying its Outstanding Shares by its market price. It is the value that an entity would theoretically have to pay to buy the entire company. 


Example: Ayala Land has 5,000 outstanding shares and is trading at 15.5. The market capitalization is 77,500 (5000x15.5)

Sales - Sales is the amount of revenues a company registers in a period. Increasing revenues is key to a company's growth. Also known as a company's top line.

Net Profit - Net profit is the amount a company earns in a period. Also known as net income, earnings or a company's bottom line.

Earnings Per Share (EPS) - Earnings per share is the amount of net profit for each outstanding share.

Net Profit Margin - Net profit margin is a measure of profitability. This is calculated by dividing net income by the total sales. The higher this percentage is, then the more profitable the company because a much bigger portion of sales ends up as earnings for the shareholder.

PE Ratio (PER) - The PE ratio is the most commonly used valuations measure. It shows how much is paid for each unit of earnings. The PE of a stock describes the price of a share relative to the earnings of the underlying asset. The lower the PE, the less you have to pay for the stock, relative to what it earns.

Dividend Yield - The dividend yield is a measure of the return on investment that the dividend gives. It is the dividend per share divided by the price per share.






Price to Book value (P/BV) - Price to book value is calculated by dividing the Market capitalization by the latest book value (book value is simply total assets minus liabilities.) It measures the amount paid for each peso of book value, which is the same as stockholder's equity.

ROE (for current fiscal year) - Return on Equity is the return on investment that the company is generating on funds invested by stockholder's. It is computed by dividing net income by stockholder's equity.