Jackpot on EEI

EEI stock - Philippine Stock Exchange Market (PSE)

Notes on EEI CORPORATION stock - July 4, 2012

EEI Corporation (PSE Stock Code: EEI) has very good fundamentals (huge line-up of projects in the future and made ~80% jump on profits this year). I bought it at Price P6.2/sh last 6/28/2012, now it's at 6.65 and I have a gain of 6.76% after a week. A look at Technicals also helped.

Will set up my price stop targets.. but contemplating on concentrating it more on a long-term (maybe on cost-averaging mode na lang). Hopefully it resumes its uptrend. It's still on HOLD status by COL (CitisecOnline) since 6/18, but technicals seems to show a different thing.

RSI (entering ~70%) seems to show it's nearing overbought levels, but this could be temporary. MACD is picking up, as well as Volume (it seems). Still need more in-depth work & study on this to get to figure out the outlook better. But uptrend looks very promising.

Seems like I'm winning (timing na timing!). I got it just before it went straight up. I wished I stacked up more cash for this - but that's how stock investing is: you will never know if you did the best thing when you start a bid (because there are risks), but you will get to decide or know, or learn, days or weeks after if it was indeed a good choice. You can trust your instincts; but experience, continuous study and vigilance will really help in a long way.

Entered this on my Stock Market Journal (for Philippine Stock Market).

The 2 Stock Market Approaches that Most People Don't Know About [and how we can use one of them to evaluate a Solar Investment] - Part 2

Hi everyone!

I sincerely apologize for having gone for so long, when I promised I will expand further on my earlier post:
The 2 Stock Market Approaches that Most People don't know about [and how we can use one of them to evaluate a Solar Investment] - Part 1.

It takes time for me to write, it can be mentally and emotionally draining because I write not just to do SEO or SEM (hello, internet geeks!) or promote myself. I put my heart & soul into it, and I try to make sure I will be responsible & objective as I can.

Anyway, let me give a quick lookback.

At my earlier post, I said that the basics of Technical Analysis include:
- How to know if the current price that we see on the news is a good price to get in
- How to know if the price is trending up or down
- How to know if we are in a bull market or a bear market


I will try to answer all these questions, using the stock charts that we have for our PCOMP or Philippine Composite Index.

Also, I'd like point out - as early as now - there may be people who may start asking why I'm divulging information that could be detrimental to their strategies. Or, some people may get overly paranoid saying, "Oh no! This guy is spilling out the secrets!"

Well, sorry.. but these are not secrets. There are a lot of resources out there. A few of which are here:
http://www.swing-trade-stocks.com/stock-market-books.html
Technical Analysis of Stock Trends by Robert D. Edwards and John Magee
Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications

[If you know of some great links or websites or books, please share them!]


Okay, so let's get on with it.



How to know through Stocks Charts that a stock is trending up/down (or bullish/bearish), or consolidating


Know your Trade Horizon

First, they say in life, as well as with business or investments, you have to KNOW THYSELF.

So, the very first question to ask then, is not "hey, could you tell me a stock I could pick now and tell me if it's trending up or down, so I could gain quickly". Hey, get-rich-quick-schemer, get outta here. I'm not here to do magic.

The right question, I guess for me, is this:
What is your RISK appetite?

Are you a trader, or doing it short-time?
Gusto mo ba maka-syota si LC, or si MEG Ryan?

Or, are you an investor, or doing it mid-term to long-term?
Ang gerlprenin/boyprenin o asawain si BELla, sTELla, or si MERyl Streep?


It doesn't actually matter if you are classifying yourself as such (trader or investor), the important thing here is that you know what your trade horizon is. Meaning, how do you look at your investments? Do you have a short-term or longer-term outlook?

If you find this hard to answer, saying "depende po e, minsan short term ako, na kapag natatalo na sa short-term nagiging long-term na po ako."
(Well, if this is your outlook, I don't think this is a good strategy po sir / ma'm.)


What is your Risk Appetite?

Okay... Let's try another question: Hanggang saan ang kaya ninyo i-risk?
Or: ok lang po ba sa inyo na iiwan ninyo ang stock investment ninyo for a year na hindi ito nagagalaw? Or, for a few months lang ang kaya mo? Or, maybe a few weeks, or a few days lang ba? 

Or baka po 'di na kayo mapakali, after a few days, 'di ka na mapigil na tignan ang stocks portfolio mo kada oras (kahit sarado ang stock market).. "ano, kumita na ba ako?? Nagbago na ba, umakyat na ba presyo?"

Kung ayan po ang symptoms ninyo.. baka po ibig sabihin ay more on short-term kayo. Or, pwede rin na nag-start pa lang talaga kayo at natututo pa lang, at di nyo pa gaano napag-iisipan.


So, by this, we could say your investment horizon can be determined by your risk appetite. If you are comfortable leaving your money invested on a stock, having studied and carefully researched on the company you chose, say in a few months or a few years - then you may have a longer term outlook. Also, those who prefer cost averaging methods look at a longer term return for their investment.

To make it short, you have to know yourself, and understand if you are here thinking on a short-term, mid-term or long term outlook.


So, in Technical Analysis, if you have a short-term outlook, you would probably look at the stock charts in DAILY or in WEEKLY views, or in 3 months, or maybe til 6 months views. For a longer-term outlook, you probably will look at the charts from time to time, and look more at 3-months, to 6-months, 1-year to 5-year charts.

Here is a sample for 3 months, running from January until March 2012:

You could see here that the Philippine Stock Market has been trending up and getting hot since January. The purple line on the graph, we could say, is the movement of the Stock Price (although my sample is the Philippine Composite or PCOMP index, so this is not a particular stock or company, but a set of companies composed together to form a composite or an index - it's like an average of all the stocks, from small caps to large cap stocks including blue chip stocks, so it could better represent the status of the Philippine Stock Market).

For now, let's not look at the graphs saying Volume, MACD, or RSI.


Here is a sample for 6 months, running from October 'til March 2012:

We could see here, through the purple line, that the Philippine Stock Market slowed down a bit from mid-October 'til about the end of the year.


Next Important Question: How do you know if a stock is going up or down?  


To answer this question, we have to define what is a TREND, then know what trendlines mean in Technical Trading.

Well, I don't know the formal definition of a trend, but it is similar to what they say in the news about a trending topic. Meaning pinaguusapan, or umuuso. But with this, we could also mean something is hindi na pinaguusapan, or nalalaos na.

So in stocks investing, when we talk about a trend, it simply means the stock is following a pattern. It is either going up or down. In technical analysis, we could easily see this in the charts. We could say a stock is going on an uptrend or a downtrend.

Let's use the Philippine stocks composite as our sample, this time using a 5-year sample chart:

Again, let's not look at the graphs saying Volume, MACD, or RSI for now.


Samples of Uptrends or Bullish trends:

On the graph above, I've indicated 3 instances of uptrends in the Philippine Stock Market for a 5-year period, indicated by the red lines. Try comparing the original graph with the one I've just shown above so you'll see what I mean.

These red lines are what we call the trendlines. Technical Analysts draw this on a graph (like the one above) so it would be easier to study their next moves and get projections. The graph that I use here is not an ordinary graph or stock chart. Try to look for Stock Chart apps or programs out there for your preferred PC operating system or mobile gadget. For me, I prefer using my Windows PC. The app that I use is from my online stock broker, CitisecOnline.com - a java chart is provided on their website when you become a member.


Downtrends or Bearish trends:

You'll know we are on a downtrend if we see all sorts of bad news and panic in the business section of our daily newspapers, sometimes echoing whatever is happening on other stock markets - especially the US stock market.



Technically Speaking 

In technical analysis, we could further define and more aptly state what an uptrend or a downtrend is.

Using a chart, we could see that an uptrend is characterized by a series of higher highs (HH) and higher lows (HL).

On the other hand, a downtrend is characterized by a series of lower highs (LH) and lower lows (LL).


In pictures or graphs:

Try going back on the charts that I've shown and try to see why I said it was an uptrend, or a downtrend.


My post is getting long. I have to cut it for now. Next time we'll see what it means by what the newspapers or stock market experts sometimes say as "consolidating", during times when our Philippine Stock Market is on a consolidation period.

Commercial: Usapang Pulitika Muna (on Chief Justice Corona)

Eto po ay bigla bigla nai-comment ko sa 1 yahoo news regarding sa trial ni Chief Justice Corona...


"Tama. Tama lang na makibahagi at makilahok sa usapang pangmamamayan, panlipunan at pang-sambayanan. Pero dapat wag na lang masyado pa-apekto.. Hayaan nyo silang maghusgahan, habang tayo naman e magpapayaman muna ng sarili sa isip, at sa pinansya. Kayang magbago ng Pilipinas, kayang bumangon. Magsisimula ito sa atin rin lang, sa ating self-emancipation at self-education.

Gumaganda na ang pilipinas, nakikita na paunti-unti na meron na ring mga proseso. Kaya mag-self-educate na lang at mag-aral ukol sa pinansya. Hayaan muna natin sila dumaan sa sariling mga proseso na nakikita naman na natin ngayon.

The Philippine's Chief Justice Corona on Impeachment Trial

Pag na-acquit si Corona.. Meron at merong aalma. Kasama na ko dun.

Pero ano ba ibig sabihin nuon? Titigil na tayo? Na sira na totally ang Pilipinas, na wala nang integridad ang batas natin? Si Corona lang ba ang Judge natin, hindi ba magkakaroon naman ng panibagong Chief Justice after a few years? Dapat nga lang matuto rin tayo sa mga mali. Ano man ang mangyari dito sa trial na to, dapat matutunan natin at masusi pag-aralan at sikaping wag maulit muli.

Nagsisimula pa lang tayo bilang isang bansa, bata pa tayo ika nga. Marami pa tayo dapat matutunan bilang demokrasya. Dapat maintindihan natin na lahat ay me pinagdadaaanang natural stages of growth. Kahit ang isang bansa. It can be slow and painful, but nonetheless - it's real growth.

- InvestingGe3k"

Why the Philippine Economy is strong and resilient despite Global Crisis

There are at least 2 primary reasons why the Philippine economy is gaining strength despite Global Crisis in the US, Europe and the middle east.

One, our OFW heroes.

See the link below regarding the latest news, stating that:

OFW inflows hit record $20.12 billion in 2011

http://ph.news.yahoo.com/ofw-inflows-hit-record-20-12-billion-2011-193833636.html


Second, our BPO industry continues to be booming.

These are just but a few reasons why the Philippines is strong and resilient. This is not just apparent in our stock market, but also on our booming and getting-bullish Real Estate. Because right now, we can simply see the skylines in Manila - it's full of high rise condo's and commercial buildings; proof that urban development is growing.

It's REALLY more fun in the Philippines.
Let's bring it on.

What have I done today that's related to Business or Investing?

A Business Journal Entry

I met with Layla (not her real name, for security reasons) today and discussed about the prospect and the possibility of doing business or "partnering" with her on her Solar business. We met at 3pm earlier.. I originally asked to meet her at 2:30, but I came in late - how shameful of me - because I went to BPI Bank to withdraw some cash, but surprisingly I met Mac (who was my office-mate and best friend) there. Plus, an amazing thing happened - the BPI guard whom I regularly chat with whenever I go to their bank, asked about my conversation with Mac (which was totally unintentional). He overheard us talking about our cellphone loading business, and so I had to chat with them (good business!) even if I am already running late on my appointment with Layla.

The great thing is that I finally discussed with her the SOLAR aspect of the business "empire" that I dreamed of building. (Apart from the Real Estate corp that I co-partnered and built with some friends, I could adopt or feature a GREEN advocacy towards my business or businesses - which I've always thought of as the righteous thing to do or what people should be doing to care for the environment. And yes, I'm a big dreamer - I'm afraid my mom would knock at my head and bring me back to "reality" when she hears me -- well, I love my mom!). But would it really matter if you tried and failed - but deep inside you only had good intentions and good dreams (the "save-our-mankind" type of thing) for yourself and others?

Anyway, back to my story. Layla and I talked for about an hour and a half. Layla was a bit sad when talking about her sister who just got recently diagnosed with a severe illness. I really feel guilty for somewhat pushing her to talk to about our business, despite her condition. I just thought that this is also for her, and that I really wanted to help, in a way. It's just sad - for anyone to go through a situation like hers. She had to take care of her sister because, as she has said - she's the only one in her family who isn't into office work but into business. I felt relieved though when our talk shifted onto business. Pretty soon, our talk was lively, exciting, and filled with hope. Our minds met immediately and "in sync" with the thought of the great ideas relating to business. I made sure I listened with full attention, and being intent on getting all ideas to sink in with the small time that we both had. Our meeting was a very fruitful one.

Finally, after my walk at the mall (I had errands to do), I had a short (or was it actually lengthy?) talk with my cousin Tonton, who's currently living with us for the time being. I really enjoy listening, chatting, and learning from this promising young man! He's very passionate in learning a lot about his work. He shares and tells stories with great zest and appeal, and talks convincingly - and with such integrity - that I feel like I want to buy anything that he offers to me, even if he is just relating to me his experiences at work. One very good thing about him is that he is a MAN of ACTION. He's very much driven to succeed. He's filled with sincerity, humility, and willingness to share and learn everything about his job. He is purpose-driven. He's hard-working and very much contented with his work at a local sales / advertising company.

If I am to be successful at the company we built, I should emulate him. Even at his young age, I could learn a lot about his efforts and his perseverance.

I even felt a bit ashamed of myself, or maybe envious, or mesmerized - at how he learns so fast, how he embraces the very hard challenges and pressures that comes with his work - even if it's hard for him. (I should know! I worked as a insurance & book salesman before and found it really hard - I decided then that Sales was not for me. I learned the hard way that it was actually the way I should go if I really want to be successful in life and reach my dreams.) He relates to me all the he has experienced, all the hard work that he does. He shares to me in vivid details how he approaches his prospects or clients, how he goes to a building armed only with sheer determination and faith. The astonishing part here is that he does COLD-SELLING! Can you believe how hard would that be? It's not even telemarketing where you are hidden behind a headset, where your clients can't see you. Although I have to admit, their products are great. If you have such a great product to sell, with great benefits, you should always forge ahead and be not afraid. Sometimes, I even feel like joining him at his work - just to LEARN firsthand more about sales, get on through with their rigid training, learn about their brand of strategy in marketing. The experience, the hardships, the learning -- all these would be INVALUABLE!! As the saying goes... "Pressure creates diamond out of stone." My only problem is that it's gonna be a full time job. Although I will really get to learn a lot, learn first-hand how to sell to strangers, how to market in odd circumstances, be forced to do things outside my comfort zone, be driven to succeed. To get REAL TRAINING on how to sell, to advertise, to market. I'd love to try that if I have the time. (But who says I can't try it with my businesses? I have my mentors and books. I have to admit though, there's can be no substitute for experience - direct TRAINING is still very much different.)

It's a good thing that Ton is still young, his mind is still very much focused on learning and growing at his professional career, and that he has a great attitude towards work and his humbling conditions and beginnings (he is the breadwinner for his family - his father died a few years ago).

At a very young age, after all that he's gone through - Tonton remains humble, kind & generous, child-like, and very much determined. I could absolutely say he has the RIGHT MINDSET. And that is why I'm proud of my cousin.

I should learn from him. And so it is, too, with Layla - who works very hard establishing her business. I should surround myself with people like them who has pure heart. Who has uncorrupted minds. Who has unbelievable character.

These people are simply LOVABLE. Who wouldn't want to like them? I should emulate them. Just like how the nurses at St. Luke's Hospital treats visitors and patients - in a great great manner, with such an amazing politeness and tact - and a extremely friendly and comforting smile! You wouldn't even feel like you are in a hospital. Or, rather, you would be amazed to think - "there's a hospital her in the Philippines like this?" It feels like home. It feels horribly like heaven in there that you'd want to stay sick. Everyone wants to be treated genuinely with respect and love.

This is exactly what our country needs.

Well, I would love to talk more. But I have to rest and sleep now. God bless all the people I've met and talked to today. God really has his ways of answering prayers. He answers you directly and straightforward. He talks through the pure hearts of the people who cared to have a genuine chat with you. If only you would listen - but listen carefully, both with your mind and with your heart.

So it's a good thing - even in business, not just in your social life, to have an open mind and to share the abundance and the blessings.

God bless!

May you have a prosperous New Year ahead - as well as a business or an investment (invest in your financial literacy first!) that would be a blessing not only to YOU, but to all whom that your heart may touch through all the SUCCESS that I wish you would have!

Jeng
1/4/2012