Archive for the ‘current events’ Category

Cost-vs-Value

I got a query on facebook recently from someone who is interested to learn about stock market investment but somehow apprehensive about it due to the cost of investment.

First I would like to apologize to most of my facebook friends. I have been advocating that you invest in the Philippine stock market and yet I failed to consider individual financial capabilities. It is a fact that for the many and uninformed, the word stock market is quite intimidating. People believe that you need to have millions and millions of pesos to invest, giving an erroneous idea that the stock market are only for the rich. In this post, I will clarify some of these myths and I will try my very best to make this as simple as possible.

I personally believe that the stock market in a great equalizer. This means that both the rich and the average income earners can do it. You can buy shares of companies and become partners of growth in big corporations in the Philippines. These include the likes of Jollibee, Ayala Land, BPI, BDO, SM, GMA or ABS-CBN. How awesome is that!

So how much does it really cost to invest in the stock market? My answer is it depends primarily in two things: a. company price per share and b. number of shares you are willing to buy. To avoid confusions, please remember that  by definition a “stock” is equivalent to “shares”. So If I mention about stock I also mean shares. For example, in the case of Jollibee Foods Corporation, their price per share is P201.00 (as of may 29, 2015). Is this something you can afford? It’s funny sometimes because every time I talk about this example, people will assume I meant 201,000. Just imagine, when JFC opens its door in your next visits you can say to yourself that you are part owner of it.

However, our stock market will not allow you to buy just 1 share. Every company sells their share at multiple called board lot. Investopedia defines board lot as a “standardized number of shares defined by a stock exchange as a trading unit. In most cases, this means 100 shares. The purpose of a board lot is to avoid “odd lots” and to facilitate easier trading.” In the case of Jollibee (JFC), the minimum share you can buy is 10. Hence, 201 x 10 = 2,100 as the amount of money you need in order to start investing in JFC. Now tell me, can you really not afford it?

Wait there’s more!

There are also good companies like SM Prime Holdings (SMPH) whose share is only P19.24 (as of May 29, 2015). This is not even close to a cellphone load you buy almost everyday. SMPH’s board lot is 100 so this means 19.24 x 100= 1,924. If you can spend 500 pesos in your facial treatment and splurge 1,000 in Mall’s midnight sales, why can’t you set aside the same amount of money for investment for you and your family’s future? If you truly believe that the company I mentioned here will still exist in the next 10 years, then they can be your best pick to start with.

Clear so far? Do you really need millions to invest? You can answer that question by now.

Now you have the money, what do you do next?

The next thing you need to do is to get a broker. A broker is a regulated professional individual, usually associated with a brokerage firm or broker-dealer, who buys and sells stocks and other securities for both retail and institutional clients, through a stock exchange or over the counter, in return for a fee or commission. In this information age, we are so lucky that we can now transact almost anything online. And with this we have online brokers. There are many brokers in the Philippine Stock Exchange that allows you to open an account with them for as low as P 5,000. You can use that amount to start your very first buying of shares in the stock market. Of course if you have much extra cash then you can buy more. But if you are just starting, then P 5,000 is already a great start for you.

Brokers charge you by commissions. By buying and selling shares you also pay taxes that help our country. These are common charges you will encounter and that is normal. It really isn’t much, the most important thing is that you will learn and build a sturdy investment for your future.

I hope this post helps you at least get a better picture of the “cost of investment” in the stock market. Please do not be intimidated about numbers and terms, the more you study this, the more empowered you become.

I will leave you with these information and hopes that you will also do your own research. In my next post, I will explain how you can earn in the Stock Market.

P.S. If you need a financial plan for your investment and/ or coaching, please send me an email at fjaymoli@gmail.com. I will be more than willing to be your mentor and partner in your journey towards financial freedom.

P.S. 2. Please join our facebook group Pagadian City Stocks Network

 

In the aftermath of Typhoon Haiyan in Tacloban City Philippines, a mayor of a prominent city in the south was interviewed upon arriving in the airport. Mayor Rodrigo Duterte of Davao City said that it seems like God is somewhere as this super typhoon wreaked havoc an entire city and leaving thousands of dead bodies on the streets.

As a matter of fact, netizens mentioned that if you want to see what a zombie apocalypse really feels & looks like, come and visit Tacloban City.

The mayor’s comment came from his observation and verily this could also be what others say.

Where is God in all of these?

How could a God that is good have allowed this to happen to people?

I don’t have a direct phone line to God in heaven and call Him for a quick phone interview. If I do, I could have also easily asked the whereabouts of a lot of missing persons that is still yet to be accounted for.

So if I’d have to answer it, the quickest reply I could say is, “I don’t know?”

But here is what I believe; God is with us in every moment of our lives. He is with those people in fear of the terrible storm, He is with those children crying for help, He is with those cold and trembling orphans, and He is with those mothers who lost husbands and kids.

We often say that there is a reason for everything.

What could be the soundest reason for this?

The first tweet I read this morning is from Pastor Joel Osteen, he said, “A setback is simply a setup for a great comeback. That adversity could be the very thing that will help promote you.”

It is for us as individual person and every survivor to ask, to seek wisdom for that we may understand. I strongly believe that one day, things will all make sense, no matter how great is the loss or how painful is the struggle. Our faith in God that there is still good after all this will help us strengthen ourselves and come out victorious after a one dark episode in our life. Get that adversity to launch you up; not push you down.

It is my earnest prayer today along with other people in the world for a Godly comfort to the typhoon survivors, to envelope every aching and anxious heart. May people offer more prayers and may our loving God touch everyone in pain.

God Bless the Philippines. God bless the world.

This is the beauty of the sun being partially covered by the moon called the “ring of fire”. This ecliptic phenomenon is called annular eclipse.

HOWEVER, this could a\only be seen on places identified in the picture below. (courtesty of http://www.earthsky.org)

 

 

To view a live WEBCAST OF THE ECLIPSE, please click HERE. Webcast starts at 5:30pm EDT or 5:30am Manila Time. (courtesy of http://www.ccssc.org)

 

 

 

 

 

Who says that you don’t make millions in the internet? And who says that only adults can do?

 

Nick D’Aloisio a 17 year old British kid just made a rumored $30 Million dollars by selling his news-reading IOS app Summly to no less than yahoo.com

This young entrepreneur might just follow the footsteps of Bill Gates of Microsoft, Mark Zuckerberg of Facebook or Steve Jobs of Apple. Considering his creativity and innovation being compared with these top three individuals who have shaped the world (as we know it today) is no longer a surprise.

Further, he commits himself in supporting the Yahoo CEO Marissa Meyer in bringing back Yahoo to its former glory.

His achievement is really very inspiring to the younger generation in using technology for good and to better themselves big time. I specifically like his interview and his humility amidst all the media attention he is getting.

CLICK HERE for NICK D’ALOISIO Interview 

Very recently, another showbiz headline overshadowed big headliners like the Sabah siege of the Sultanate of Sulu and the daily Earth Hour celebration in the Mindanao (sarcasm to mean the 8 hour rotational brownout in Mindanao). And this is led by no less than the presidential sister, Queen of all media Kris Aquino. The whole story was picked by leading newscast and talked about in the airwaves like one of her blockbuster movies.

Apparently, Ms. Aquino filed a TPO (Temporary Protection Order) for her former husband, famous basketball player of the PBA, James Yap. The TPO directed Mr. Yap to stay away from her former wife and their 5 year old son. The court’s decision was based on Ms. Aquino’s claim that Mr. Yap insinuated some amorous advances by forcing himself towards Ms. Aquino in front of their son. Kris Aquino is saying that this is a form of abuse since James Yap no longer has any matrimonial rights towards her as a husband. The former vehemently denied the accusation and stared a rather humble-looking tirade of expose’ incriminating Kris Aquino to have filed the above-mentioned court order in response to James Yap’s defiance to grant an adoption to their child Bimby. On a latter note, the court issued a gag order directing both parties to not speak any further on the merits of the case.

From the looks of it, this story is even more complicated that we thought. As to why the biological father needs to give up his rights and have his former wife adopt his son is totally a very long legal argument. I am nowhere near to being a law expert hence that is not what I wish to talk about in this post.

On Kris Aquino’s interview on TV last March 20, 2013 in the country’s leading newscast TV Patrol (ABS-CBN) and 24Oras (GMA7) she bravely answered all questions and accusations thrown to her by the camp of James Yap. She appeared with her 3 other Presidential sisters. One of the issues she cleared was that she never threatened James Yap of losing his career since her brother, the current President of the Philippines; President Benigno Aquino still has 3 years left in his term as a President of the Republic.

This indictment by James Yap has held so much talk in the social media that placed Kris in a bad light towards the eyes of the public. In fact just a few days after, online hacktivist Anoymous defaced her very own website and a few of her banner adds. But what shocked the people most was when she said that she will quit from all her showbiz shows in ABS-CBN including her very successful stint in Pilipinas Got Talent (local version of the TV Franchise, Got Talent by Simon Cowell), a primetime soap opera and her very own multi-awarded talk show Kris TV.

Kris pronouncement that she will resign from all her shows may have shocked the people but had really never gotten so much sympathy for her.

So why Kris Aquino fails to get public’s sympathy this time?

It can be remembered that 3 years ago Kris said the same words in her previous showbiz show, The Buzz. What she said was that she will only return to showbiz only after her brother finishes his term as a President. During that time, Kris had a misunderstanding issue with her co-host Ruffa Gutierrez that led to Ruffa’s resignation from that same show. At the sudden influx of emotions, Kris said the declaration on National TV during one of her emotional interviews.

For the second time, Kris might have caused herself another mistake by injuring her credibility for pronouncing the same declaration. Most if not all viewed her articulation as emotion-driven, lacks prudence and responsibility since she has contractual obligations to her mother network (ABS-CBN).

As I contemplate on this sad news, I am reminded of a childhood story about a young shepherd boy tending his flocks of sheep on a hill near their town. In the story, the boy is making fun of some villagers by shouting alarm to the village that a bear is attacking his flocks and when men in their village would climb up the hill to rescue him, he would just laugh and said it was just a joke. He is doing it until the time real danger arrives and nobody believes him up until all his flocks were rampaged by a bear, in an eating frenzy, devouring all his animals.

I know for sure that Kris does not mean any joke when she said this the second time. But clearly, there is a lesson yet we can learn from this. That at the height of your emotions; do not create any decisions. For often than not, even if you contemplated your decision well, people are so smart to no longer trust your words.

So much so, no matter how wealthy and famous we are, our words is the only thing we have. It can either make us or break us. It can either fortify our credibility or destroy it for good. And if you are making a career out from the credibility of your words; that should be the last thing you have to give-up.