Investment and Life Lessons - Part 11

Here's the PART 11 of our Investment and Life Lessons series. These are the ideas we've gathered from our various readings on business, stocks, economy, money, war, love and life. Our list is getting too long again hence we're sharing it with the Filipino Investors out there for them to learn a thing or two. Cheers!

1. Be grateful for everything and entitled to nothing - Charles Koch
2. After 25 years of buying and supervising a great variety of businesses, Charlie and I have not learned how to solve difficult business problems. What we have learned is to avoid them. To the extent we have been successful, it is because we concentrated on identifying one-foot hurdles that we could step over rather than because we acquired any ability to clear seven-footers - Warren Buffett
3. We've long felt that the only value of stock forecasters isto make fortune tellers look good. Even now, Charlie and I continue to believe that short-term market forecasts are poison and should be kept locked up in a safe place, away from children and also from grown-ups who behave in the market like children - WB
4. We never want to count on the kindness of strangers in order to meet tomorrow's obligations. When forced to choose, I will not trade even a night's sleep for the chance of extra profits - Warren Buffett
5. The stock market is a no-called-strike game. You don't have to swing at everything -- you can wait for your pitch. The problem when you're a money manager is that your fans keep yelling, 'Swing, you bum! - WB
6. I call investing the greatest business in the world ... because you never have to swing. You stand at the plate, the pitcher throws you General Motors at 47! U.S. Steel at 39! and nobody calls a strike on you. There's no penalty except opportunity lost. All day you wait for the pitch you like; then when the fielders are asleep, you step up and hit it - WB
7. I'll tell you why I like the cigarette business. ... It costs a penny to make. Sell it for a dollar. It's addictive. And there's fantastic brand loyalty - WB
8. I don’t let people do projections for me because I don’t like throwing up on the desk. ~Charlie Munger
9. I have no use whatsoever for projections or forecasts. They create an illusion of apparent precision. The more meticulous they are, the more concerned you should be. ~Warren Buffett
10. Nothing in this world can take the place of persistence. Talent will not: nothing is more common than unsuccessful men with great talent. Genius will not: unrewarded genius is almost a proverb. Education will not: the world is full of educated derelicts. Persistence and determination alone are omnipotent ~Calvin Coolidge

PIFA optimistic about PH GDP, slates conference this month

To register, visit http://bit.ly/PIFA_MFWEEK2017.

Registration is FREE, but slots are limited.

With the Philippine investment industry soaring this year in spite of rising interest rates, investors from across the country and overseas remain optimistic that the Philippines can hold its GDP growth momentum at 6.5% for the entire year 2017.  There is obviously a vast majority of Filipinos, mostly consumers that are keen to tap into this economic growth by looking at diversified investment vehicles available in the market.

To balance the need and bridge the gap that affect these behaviors, the Philippine Investment Funds Association (PIFA)—the country’s association of over 12 mutual fund companies composed of fifty-eight member-funds with a total Asset Under Management (AUM) of PhP 276 Billion as of July 31, 2017—hosts it annual Mutual Funds Conference on September 23, 2017 at the 3F SGV Hall of the Asian Institute of Management (AIM) in Makati City.

This one-day event dubbed as “Mutual Funds: Your Partner in Wealth Building” opens its doors to the public with packed sessions that steer up from the grassroots to the most practical side of investing that will pave the way to financial freedom.

“This year’s conference aims to touch not just issues and innovations in the industry but the lives of the Filipino people by helping them build their wealth,” says PIFA Chairman Ignacio Gimenez. “We are expecting over 400 attendees this year and we will be discussing to them the basics on mutual funds, the local regulations and also scams that they should be knowledgeable of, and of course, what lies ahead through the market outlook,” he adds. The event format will be a mix of plenary and panel sessions for better audience engagement and participation.

Key local and global players in the financial industry have pledged their full support for the event. Platinum Partners include: JP Morgan Asset Management, Philam Asset Management, Inc., Sun Life Asset Management Company, Inc., BPI Investment Management, Inc. The event is also co-presented by Silver Partner First Metro Securities Brokerage Corp., with the help of Bronze Partner COL Financial Group Corp.

“We are honored to once again host an insightful and interesting event that aims provide a mutually-beneficial environment of strategies, ideas, knowledge, and best practices for the Filipino people," says Head of Education & Seminars Committee. Mr. Augusto Mr. Cosio Jr.

To register, visit http://bit.ly/PIFA_MFWEEK2017.

Top 25 Cheapest Stocks in the Philippines for Jul 2017

"Top 25 Cheapest Stocks in the Philippines" is a monthly publication by Filipino Investor to give investors in the PSE a sense on what are the cheapest stocks at the current market prices. This will be particularly useful to value investors a.k.a. those investors who like to buy companies whose current market price is selling cheap relative to quantifiable metrics such as earnings, sales, book value, dividend etc.

We would like to remind the readers of this website to do due diligence before investing specially on the more iliquid names. Cheers and enjoy!

Note:

1. P/E, EV/EBITDA, P/B, P/S, P/CF were arranged from lowest to highest (lower the numbers means they are cheaper)

2. Data as of 23-Jul-17 

Top 25 Largest Companies in the Philippines for Jul 2017

"Top 25 Largest Companies in the Philippines" is a monthly publication by Filipino Investor to give investors in the PSE a sense on what are the largest companies a.k.a. "Blue Chips" in terms of Market Capitalization at current market prices.

This will be particularly useful to large-cap investors a.k.a. those investors who like to large, established companies.

Formula:
Market Capitalization = Shares Outstanding x Current Stock Price

We would like to remind the readers of this website to do due diligence before investing. Cheers and enjoy!

Data as of 23-Jul-2017

Rank	Ticker	Short Name	Market Cap (PHP)	Last Price (PHP)	P/E	P/B	Dividend Yield
1	SMPH	SM PRIME HLDGS	1,005,000,000,000	34.80	40.83	4.18	0.75
2	SM	SM INVESTMENTS	963,666,000,000	800.00	33.11	3.11	0.97
3	ALI	AYALA LAND INC	620,657,000,000	42.15	28.28	4.18	1.14
4	JGS	JG SUMMIT HLDG	555,120,000,000	77.50	63.19	2.21	0.30
5	AC	AYALA CORP	546,647,000,000	880.00	21.10	2.36	0.79
6	BDO	BDO UNIBANK INC	541,140,000,000	123.90	18.39	1.96	0.97
7	AEV	ABOITIZ EQUITY	426,478,000,000	75.70	19.28	3.06	1.76
8	BPI	BANK PHILIPPINE	420,413,000,000	107.00	18.06	2.45	1.68
9	TEL	PLDT INC	367,295,000,000	1700.00	19.66	3.36	3.29
10	URC	UNIVERSAL ROBINA	354,870,000,000	161.00		4.80	1.96
11	MER	MANILA ELECTRIC	312,206,000,000	277.00	16.06	4.53	2.95
12	AP	ABOITIZ POWER	295,816,000,000	40.20	15.30	2.97	3.38
13	MBT	METRO BANK & TR	276,357,000,000	86.90	15.00	1.38	1.15
14	GLO	GLOBE TELECOM	269,551,000,000	2028.00	18.24	4.32	4.49
15	SMC	SAN MIGUEL	245,226,000,000	103.10	27.43	0.90	1.36
16	JFC	JOLLIBEE FOODS	240,167,000,000	221.80	37.84	6.66	0.90
17	GTCAP	GT CAPITAL HOLD	230,153,000,000	1195.00	21.79	1.79	0.25
18	ICT	INTL CONTAIN TER	214,553,000,000	106.00	28.82	2.51	2.33
19	MPI	METRO PACIFIC IN	209,532,000,000	6.65	17.50	1.37	2.05
20	DMC	DMCI HLDGS INC	207,129,000,000	15.60	16.05	2.91	1.54
21	LTG	LT GROUP INC	189,158,000,000	17.48	23.46	1.39	0.86
22	SCC	SEMIRARA MINING	178,968,000,000	168.00	14.90	5.22	2.98
23	SECB	SECURITY BANK	171,656,000,000	227.80	20.16	1.72	0.88
24	MEG	MEGAWORLD CORP	151,525,000,000	4.70	12.88	1.18	1.15
25	AGI	ALLIANCE GLOBAL	143,778,000,000	14.00	9.42	0.95	2.21

Source: Bloomberg

DISCLAIMER:

This is not an investment advice and the author shall not be responsible or liable for any trading or investment decisions made based on this information.
The author hereby expressly disclaims any responsibility for any error or inaccuracy in the information.

Top 25 Highest Dividend Yield in the Philippines for Jul 2017

"Top 25 Highest Dividend Yield in the Philippines" is a monthly publication by Filipino Investor to give investors in the PSE a sense on what are the highest dividend yielding stocks at current market prices.

This will be particularly useful to income investors a.k.a. those investors who like to buy companies that pay dividends.

We used Bloomberg's Dividend Indicated Yield in calculating the numbers defined as:

"The most recently announced gross dividend, annualized based on the Dividend Frequency (DV016, DVD_FREQ), then divided by the current market price. If the security is paying an interim/final dividend, then the indicated yield is calculated by adding the gross amount from the most recently announced interim and the most recently announced final, and dividing the sum by the current market price. Abnormal Dividends are not included in this yield calculation."

Formulas:

Dividend Yield = Dividend Per Share / Stock Price x 100%

Dividend Payout Ratio = Dividend Per Share / Earnings Per Share x 100%

We would like to remind the readers of this website to do due diligence specially on the more iliquid names.

Data as of 23-Jul-17

Chelsea Logistics Holdings Corp. (“CLC”) Initial Public Offering (IPO) Implementing Guidelines For Local Small Investors (LSI)

Final Offer Price: 10.68 per share

Minimum Subscription
1,000 Firm shares, and thereafter, in multiples of 100 Firm Shares

Documentary Requirements
For Individual Applicants (pls. note that individual applicants are required to personally submit their applications):

Two (2) duly executed signature cards attach to the accomplished LSIP Form

LSIP Form available at: to be announced - TBA
LSIP Receiving Center/s: to be announced - TBA

Photocopy of any two valid government-issued ID cards (SSS, GSIS, Driver’s License, Passport or PRC). An ID is considered valid provided that the same is current and bears the signature and photo of the owner-applicant.

Mode of Payment
LSI applicants may pay through cashier’s/manager’s check, corporate check or personal check drawn against a bank account with a Bangko Sentral ng Pilipinas (“BSP”) - authorized agent bank or any branch thereof, located in Metro Manila.

All checks should be made payable to “(TBA)”, crossed “Payee’s Account Only,” and must be dated the same date of the submission of the Application

Timetable
Price-setting Date – July 20, 2017
Start of Offer Period for LSIs – July 24, 2017, Monday 9am-3pm
End of Offer Period for Metro Manila – July 31, 2017, Monday 12noon
End of Offer Period for Outside Manila – TBA
Target Listing Date – August 08, 2017, Tuesday

Each LSI application may subscribe not more than TBA Offer Shares in accordance with the Board lot table.

Disclosure: http://edge.pse.com.ph/openDiscViewer.do?edge_no=29f5a94d2388c5003318251c9257320d#sthash.xGFMaRWu.dpbs

Prospectus: http://www.chelsealogistics.ph/reports/prospectus/prospectus

IPO Disclosures: http://edge.pse.com.ph/listingNotices/form.do

Information Sources: Philstocks, PSE Listing Notices

DISCLAIMER: 
This is not an investment advice and the author shall not be responsible or liable for any trading or investment decisions made based on this information.

The author hereby expressly disclaims any responsibility for any error or inaccuracy in the information.

Fun Fact: IPOs vs Delistings in the US from 1998-2013

We encountered the chart below in the Bloomberg Terminal and found it quite amazing.

Key takeaways:

1. The number of publicly listed stocks in the US has been going down in the last 15 years. Because the number of Delistings > the number of IPOs.

2. As an investor in the PSE, this chart gives you a sense how small our market is vs the US. Imagine listing 500+ companies in 1 year (Year 1999)! - to put that in context context there were only 8 IPOs in the Philippines in the year 2016. We have a long way to go! But... We are on the way :)

3. This chart kind of reminds us to be humble. That's because on IPO's all the glamorous pictures, smiling faces on the opening bell and stock promotions are there. But on delistings, it's usually because the company failed to meet exchange requirements, corporate bankruptcy, buyout etc. which is usually not a very rosy picture. 

 IPOs vs Delistings in the US from 1998-2013

Source: Bloomberg

DISCLAIMER: 
This is not an investment advice and the author shall not be responsible or liable for any trading or investment decisions made based on this information.

The author hereby expressly disclaims any responsibility for any error or inaccuracy in the information.