Saturday, March 30, 2013

The Six-Pack Feature

If Six-pack is desirable for summer, that desirable feature can also be found in COL Financial's System. Only, it is not something that you can find in a human's body.

This is what it looks like.

The Six-Pack

Six-Pack is compose of six small boxes that shows the current status of 6 stocks in one window. You can find this feature if you go to Quotes > Six-Pack.

Locate Six-Pack in COL Financial System

Benefits of Six-Pack

Whether you are buying or selling stocks, you do want to get the best deal in every transaction. Six-pack helps you with this goal by keeping you updated with the prices of each stock. It is mostly beneficial to those investors keeping an eye to multiple stocks.

In my case, it helps me monitor all the stocks included in our Truly Rich Club Stock List. That includes the stock codes seen in the image above: Manila Electric Company (MER), BDO Unibank, Inc. (BDO), Metro Pacific Investments Corp (MPI), First Prime Holdings (FPH), SM Prime Holdings (SMPH), Metropolitan Bank & Trust Com. (MBT). If I have extra cash in my account and I am having difficulty choosing among those great companies given by Truly Rich Club (TRC), I use this feature. It aids me to see what stock is still in the Buy Below Price so I could gain the maximum profit when it hit the Target Price. Buy Below Price and Target Price are terms we use in Truly Rich Club. The club gives us the suggested list of stocks based on their researches and provides us with prices that tells when we can still buy (Buy Below Price) or what price is it best to sell (Target Price). Six-pack feature plus TRC's suggested stocks and price list make my investing much easier.

Click on the link below to know more about the Club and get your free e-book "My Maid Invests in Stock Market and Why You Should Too".


God bless on your investment and may this feature help you.

Feel free to leave your comments. :)

Sunday, March 24, 2013

Terminology Explained: Ex-Date

One of the ways in which you can earn in Stock Market is through Dividends. So if the company you invested or planning to invest with declares a dividend, make sure you take note of this very important date - EX- DATE. (See more about dividends.)

Let's see some definitions of Ex-Date in different sites:
Taking directly from Investopedia, it is the date on which a security is traded without a previously declared dividend or distribution. After the ex-date, a stock is said to trace ex-dividend. It is also explained in their site that this is the date on which the seller, and not the buyer, of a stock will be entitled to a recently announced dividend. The ex-date is usually two business days before the record date.

While according to Investorwords, the ex-date was created to allow all pending transactions to be completed before the record date. If an investor does not own the stock before the ex-date, he or she will be ineligible for the dividend payout.

To make it easier to understand, let's have an example. Last year, SMPH declared giving out 25% stock dividends with an ex-date of May 21, 2012. So only those who have stocks before May 21, 2012 will get the dividends. If an investor has 1000 stocks before May 21, 2012, he was given 250 more stocks on the payable date which is June 20, 2012. I thought of including this in my blog because last year, I bought more stocks of SMPH hoping to get more stock dividends. When payable date came, I didn't receive what I am expecting to get because I bought the additional stocks on May 21, 2012. So the next time you are aiming to  get dividends, make sure to look at the Ex-Date.

One of the dividends I am expecting now is from Metrobank (MBT). It declared a cash dividend of 1.00 per share.

Since the ex-date is March 5, 2013, those who bought their shares in MBT on that date will not be eligible for a dividend.Those who have their shares until March 4, 2013 is entitled for dividends and will receive dividends on April 3, 2013 based on the Payment Date declared on the news details above.

P.S. MBT is one of the suggested stocks of Truly Rich Club. If you want to know more about the club and what it can do to help you while you start investing in Philippine Stock Market, click on the link below. You can also download a free ebook "My Maid Invests in Stock Market and Why You Should Too" in the link.

Friday, March 8, 2013

Understanding How An Investor Earns in Stock Market

How will my money earn in Stock Market?
I heard this question a couple of times from people who had been asking me about how their money will earn in Stock Market if they invest.

I know you are curious too so let me explain it in the way that I understood it when I was still in my first few months of investing.

There are two ways on how an investment goes up or earns in Stock Market:
1. Value Appreciation
2. Dividends

Value Appreciation

It will be easier to present Value Appreciation of share price by this scenario. Lita,a businesswoman, bought a product (named Product A) for 10 pesos per piece as an introductory price. She thought that in time, Product A will increase its value because consumers will benefit a lot from this product. So she bought 1000 pieces. After a few months the price went up as more and more consumers are believing in the product. Time came that the value of product A appreciated, it costs 15 pesos each. Happy Lita, she sold her products with 50% increase in her capital.

Now, here's  a true strory. Two years ago when I started investing in stock market, we were advised in Truly Rich Club by our mentor Bo Sanchez to buy stocks from SMPH. At that time, the value of each share ranges from 10-11 pesos only. Now, the value of each share ranges from 18 - 19 pesos. So, if you are Lita who believed in the future value of the product she bought (SMPH in this case), you could have gained not just 50% but almost 80% profit. For an accumulation of 1000 shares, your Php 10,000 will become Php 18,000. What if you have 2000 shares? Then your Php 20,000 will become Php 36,000. Try increasing the number of shares and you will be amazed of how much your original investment has increased. I leave the computation and imagination to you. ;) If you are happy with that 5% interest the bank gives you for the whole year (I just hope there's a bank that gives that much interest cause it's usually 2-3% per annum), Lita is happier by 14 times with that 80% profit.

Below are the stocks previously suggested by Truly Rich Club. See how much their values went up in a period of 5 - 14 months. So for Truly Rich Club members, they surely gained a lot. Image taken from one of the Stocks Update we receive in Truly Rich Club. Click here to know more about the Club


There are two types of dividends: Cash and Stocks. 

A cash dividend is something that the company give to its shareholders in the form of, hmmmn... cash. (I know that's a brilliant explanation). Imagine it like the company giving you incentives for investing with them so they are sharing some profit to you. So in our example on SMPH, if you have 1000 shares and the company says it will give Php 1.00 dividend per share, you will get 1000 * 1.00 =  Php 1000.

A stock dividend, on the other hand, is a dividend in the form of stocks. Genius me. Lol. When companies declare that they will give stock dividends, this means your original shares will increase. Let's say you have 1000 shares and the stock dividend issued is 25% of what you have. That means your 1000 shares will become 1250 shares. The stock dividend given can be sold to convert it to cash. Once sold, it goes directly to your fund.

That's basically how your money increases or earns when you invest in Stock Market. But of course, you have to know what stocks to invest in. For a newbie like me and a young professional who doesn't have enough time to make researches for all the companies listed in PSE, I joined Truly Rich Club. It's a lot easier since they give reviews of the stocks they suggest to buy and sends update as to when is the best time to buy and sell stocks. You will be guided as you start your investment. I have been a member for more than two years and I'm happy with how much I have earned. See my previous post on My Two Years of Investing in Stock Market and How I earned.

If you're reading this because you want to increase your financial wisdom, I recommend that you download this free ebook by Bo Sanchez. This opened my mind into a world of financial abundance.

                           Get Bo's FREE ebook!

Friday, March 1, 2013

3-Step Practical Way to Start Your Saving Habit

Previous Post: Philippine Stock Market for Non-Filipinos - Apply in CitisecOnline

Pocket Check!

How much money do you still have in your pocket before the next payday?
How much savings do you have in your bank account?
If you have a little trouble saving money, then you might want to try these simple and practical ways I follow.

Here's what I do when my salary is credited to my account.

1. Budgeting

In my previous post Learn the Right Formula to Save, I discussed about the 70-20-10. I budget 10% as my tithe, 20% for  my savings and investments, and 70% for all my expenditures. Here's the sample format I use:

For my 70% expenses, you can notice that the Food, Fare and Miscellaneous are formatted to be aligned to the right portion.It lets me identify that I am budgeting for my Allowance Expense but it is broken down to three items: Food, Fare and Miscellaneous. I put miscellaneous under allowance in case I have "unexpected" expenditures (team lunch out, food trips with food and travel bloggers Metro Street Bites and Geejay Travel Log, and sudden meetups with friends).

2. Divide your Cash and Label.

It will help if you don't put all your cash in your atm because it becomes easy for you to withdraw cash anytime. Leave only the amount you will use for your allowance and withdraw all the amount that you will use to pay for rent, utilities, credit cards, tithes and investments. This helps you avoid spending the money intended for your other expenditures. For my stock investment, I immediately transfer it through online banking and deposit it to my COL Financial (previously known as Citiseconline) account to ensure that I follow my 20% budget for stocks and investments. Know more about stock investment for newbies here.

Divide your cash, label them and put them in an envelope (or anywhere safe from your easily tempted hands).

3. Strictly Follow Your Budget.

I know it could be tempting sometimes to spend all your money whenever you have something you can pull out of your pocket. But strictly following your budget has a lot of benefits and rewards. Few of these benefits are:
a. Being debt free (No Overspending means no borrowing of money)
b. Having savings and investments. (Grow your money. See how I do it here)
c. Developing the habit of managing your finances (A habit not all of us have)
d. Avoiding unnecessary expenses (Since you don't have budget for this)

Some say "I will save up when I have extra money". Others say "I will just do it next year". I say "Save now".
Why? Because if you can't save money with your current status, even if you have salary increase, you won't have "extra money". Your expenses will go up as your salary goes up. And, if you can't start saving today, you won't be able to start saving in the next few weeks, months or years because developing a habit isn't done overnight. Motivate yourself and strictly follow your budget. Then, time will come you will reap your rewards.

Happy Saving!

Hope this post helps. Please feel free to leave your comments.