(If you want a quick guide for beginners how to start investing in the Philippine stock market, you can download yourΒ free ebook here.)
Watch the video below for investing tips, tricks & stock picks you can start with.
How to Use
Buy the stocks only when the price is below the “Buy Below Price”.
By following this model portfolio, you’re effectively using the basic strategy – “Buy Low, Sell High” .
The basics of Value Investing is buying great companies at a discounted price. By observing the “Buy Below Price”, you’re able to buy ONLY when potential upside is at least 15%.
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TERMINOLOGY
LAST PRICE
Last traded market price for the company or index.
BUY BELOW PRICE
A level at which capital appreciation potential is already attractive relative to the fair value estimate. Any price below the Buy Below price is considered an attractive level to buy the stock.
FAIR VALUE (FV)
Fair Value 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, P/E) provided by COL.
COL Financial EIP List
A selection of Premium Growth Stocks carefully selected by the COL Research Team that represents listed companies that will continue drive shareholder value in the long-term. EIP is designed for long term investing using Peso Cost Averaging. Check this post for a comprehensive discussion of this passive strategy >> Easy Investing with EIP
Other financial indicators you can use
P/E RATIO
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. PE is also considered a relative valuation measure.
RSI
A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset
An asset is deemed to be overbought once the RSI approaches the 70 level, meaning that it may be getting overvalued and is a good candidate for a pullback. Likewise, if the RSI approaches 30, it is an indication that the asset may be getting oversold and therefore likely to become undervalued.
UPSIDE
The difference between Last price and Fair Value in percentage (%). Most investors prefer to buy stocks with at least 10% Upside and ideally 15% and up.
Investment Guide’s Rating Definition
BUY – Stocks that have attractive fundamentals and valuations, based on COL’s analysis. COL expects the share price to outperform the market in the next six to twelve months.
HOLD – Stocks will either (1) attractive fundamentals but expensive valuations, (2) attractive valuations but near term earnings outlook might be poor or vulnerable to numerous risks. Given the said factors, the share price of the stock may perform merely inline or underperform the market in the next six to twelve months.
SELL – Both valuations and fundamentals of stocks are not favorable. COL expect the share price to underperform in the next six to twelve months.
Technical Guide’s Rating Definition
[ezcol_1half]BUY – an up trend showing an ongoing upward driveHOLD – stay with what you have or, if without a position, wait for a BUY
TAKE PROFITS – suggests a reduction in position as a loss in upward momentum may trigger a consolidating reaction or pullback to support
RANGE TRADE – proposes a trading buy from rebounds off supportive areas
LIGHTEN – reduce positions as range rallies seem to be tapering off
SELL – a down trend showing a continuing downward drive
SELL INTO STRENGTH – a down trend showing a technical rally that may offer better prices to sell to, especially if it nears next resistance[/ezcol_1half_end]
TOP PICKS
Stock(s) that have favourable fundamentals, and most likely to outperform its peers from their respective sector (Banks and Financials, Consumer, Property, etc) selected by COL. These stocks are the top bet for the “current” year.
HOW TO MAXIMIZE
1. Do NOT just buy stocks with the highest UPSIDE unless you are a hardcore Long Term investor, a “Contrarian” investor and has the patience of Warren Buffett and Philip A. Fisher who don’t sell for decades. Fisher’s longest was 49 years!
2. Buy when: it’s near the support as much as possible (check your broker for their Technical Analysis guide); RSI is oversold; MACD is bullish (or starting to be bullish); price closes above Moving Average; PSEi is on up trend.
Happy investing!
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Hello po. I’m 23 and i would like to take my chance on this business. But I don’t really know anything about it. Also, I’m not good with numbers. But after reading this it encouraged me more. And i understand it now, a bit. Ang di ko lang po maintindihan is yung selling part. Why would someone want to sell their stock? And mas malaki ba ang kita nun if you sell one? Thanks.
…In stock market, EIP easy investment program. merong Long term investment, short term investment, or buy or/and sell your stocks. like me I buy stocks to diff company na lower price per share na Malaki ang potential na tumaas ang price per share.if tumaas price per share usually I sell it if I Gain more or less 10%. then syempre tataas cash equity value ko, then search ulit ako ng other stocks na pde ko ulit bilhin. kaya ung iba they buy and/or sell their Stocks… For others naman, they keep buying stocks even if price is getting lower than their average market value, that is cost averaging.
I just opened my bdo account here in abu dhabi po from a money exchange facility…pwede po ba na yun ang gamitin para dun sa requirement na local bank account? thanks sir
very nice and informative, actually naka pag bukas na ako ng account sa COL kaya lang hindi pa ko nakapag simula, but maybe this month i will buy share na para makapag simula na rin ako ng investment ko sa stock market, im really excited about it.
Firstly, people sell is that something fundamentally changes with the company. For example, if you bought a stock thinking that it has a huge contract with company X, but later lost that contract, you would consider selling it.
Another reason is that earnings disappoint. If you are expecting an EPS of 14 pesos per share, but the company delivered only 6, you might consider selling it.
Third, people sell if they think that the stock is going to go down. This is less advisable if the fundamentals of the company are strong. For a short-term trade that you have no intention of holding, this might be time to get out.
Fourth, people sell if they think that they can make a bigger profit somewhere else. Always think about opportunity costs. It might be a solid stock making you 8% per year, but if there is a stock that can make you 10% per year, why keep the first one?
Fifth, people sell due to one-off events such as the CEO mucking up a public speech or pissing people off. You can also put geo-political risk events or interest rate changes here.
Sixth, people have different trading strategies. Some people want to keep a stock for a short period of time and (hopefully) make money.
Seventh, especially at the end of the year, people will sell according to some type of tax strategy. Losses on one stock can sometimes offset gains elsewhere and, thus, reduce your overall tax liability for the year.
There are lots of reasons to sell a stock.
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Hi Sir, tanong ko lang kasi wala na po’ng Investment guide sa COL. Meron po bang alternative na guide for Investing?
you can start checking this regularly – https://www.smartpinoyinvestor.com/beginners/investmentguide
Hello po gus2 ko pong mag invest I am a College student but my budget is just 6000php… Help me please..
Good day sir omeng,
Sir panu po malalaman ang buy below price sa col financial pra icompare ko po ung price sa stock update na galing sa TRC?sa TRC member mkkta po dun ung buy below price..maraming salamat po
sir pwede bang iaccess ang financial portfolio without facebook
pwedeng pwede po yan.