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Investment Stock Market

Stock Market Updates as of August 2014

I haven’t shared much about the stock market lately because my posts in July were all about my stock market venture. And I know that it might have been a little boring to some readers who are not interested in this type of investment vehicle.

Also, I kind of took a break in intra-day trading because I have limited funds and my current portfolio seems to be suitable for long-term investment. (Does it sound like a defense mechanism of a loser? 🙂 ) But seriously, as I learn the ins and outs of the stock market plus the knowledge I gained in the seminars that I’ve attended, I’m slowly realizing the advantages of long-term investment over short-term trading. I will tell you more about this in a separate post. In the meantime, I will share some updates related to my stock market venture.

MA (Manila Mining Corporation)

The highest percentage of my portfolio still comes from MA (Manila Mining Corporation). This is not a blue chip company but I still hold on to this stock because I believe in its positive market outlook. The stock value increased a bit after the Stock Rights Offering (SRO) that officially showed up in July. There is a slow movement in its valuation which is indicative to its low trading volume and the trend has always been sideways.

I visited the company’s website to know the disbursements made out of the SRO proceeds. In their report on July 2, 2014, they disclosed that the highest percentage of the proceeds went to Accounts Payable Trade and Accruals while the rest went to the disbursements of  Contractors, Cost of SRO, Care and Maintenance/Adm. Expenses, Drilling Program and Payables to the government like taxes, SSS, etc.

I’m relatively new to stock market and I don’t have enough knowledge in technical and fundamental analyses so if you want to know more about MA, you may visit their website through this link.

I don’t know either if MA was a good choice of stock or if I made a mistake in investing with this company. I’m staying positive and hopefully it follows the footsteps of SCC (Semirara Mining Corporation). 🙂

SINO (Sinophil Corporation)

I used a small portion of my funds to buy SINO (Sinophil Corporation) in June 2014. It was at 1.61 per share when I bought it. A common mistake of a stock market noob is being too eager to go with the flow or buying a hot stock without studying the technical and the fundamental background of the company. Yes I’m guilty of that and I paid my price. 🙂

It was on its peak when I bought it. In technical analysis, they call it resistance. And apparently, after hitting its resistance level, it went back down again and continued to dive until it reached around 1.15 per share. Another heart-breaking experience for me. 🙁

I held on to it and waited patiently. After a month, it bounced back and reached 1.71. And that’s when I decided to sell all my shares with almost 6% profit.

PSEi finally hit its 7,000 level

August is believed to be a ghost month and for some, it is not a good time to invest or open a business. One of the reasons being is that the economy kind of slows down during this month thus some investors take a break from the market. While it is only a belief, historical data show that August seemed to be the weakest month in the stock market.

Surprisingly, PSEi (Philippine Stock Exchange Composite Index) breached the 7,000 mark for the first time in nearly 13 months! PSEi by the way, is the main stock market index of the Philippine Stock Exchange, which is one of the indicators on the general state of the Philippine economy. So when the PSEi is high or is going up, it can be an indication that our economy is doing well or the corporate earnings are improving.

Now, is it a good time to invest?

From what I learned so far, there is no such thing as best day or best time to invest. No matter if it’s ghost month or not, it’s always a good time to invest. But before you take any action, make sure to educate yourself first. As Benjamin Franklin says,

Investment in knowledge pays the best interest.”

Categories
Investment Stock Market

Is August really a Ghost Month?

If you’re an investor, you’ve probably heard of Aughost – which some people refer to as August being a ghost month. If you haven’t, don’t worry, I feel for you. 🙂

I did a brief research on this and here’s what I found from my source. Ghost month is the seventh lunar month in the traditional Chinese calendar. This is significant to some people because of the belief that this is a bad time to do activities such as traveling, moving house, and starting a new business or investing.

I’m no good in story-telling so if you’re interested to know more about this ghost month thing, please go ahead and click this link. 🙂

Going back, I first heard of it when I attended COL Financial’s briefing on COL Positioning for 2015 at the Meralco Theatre two days ago. One of the attendees asked,

COL ghost month question

I don’t know if I got it all correctly but I’ll share with you some points that I’ve written on my notes based on the the panelists’ answers to this question and their suggestions for investors. Some of these are based on my personal opinion.

  • Lower volume of trades is expected this month because some investors may sell their stocks to stay liquid in their assets.
  • It can be a good opportunity for investors who do cost averaging because the share prices may be lower at this time.
  • Study the stock market and do your own research on the fundamental and technical analysis of the companies that you want to buy shares with. If you think you don’t have the skills to do so, take advantage of COL Financial latest research which can be found at the COL’s account homepage.
  • Reevaluate your portfolio, diversify, and as much as possible, go for long term investment in the stock market. It is way safer than active trading, unless you have the necessary skills.
  • On whether they should sell their shares or not, one of the answers I got was to hold on to the stock for now. Don’t sell especially if it’s at a loss. Wait until the valuations recover and bounce back.

These temporary changes in the stock market are not affected solely by this so-called ghost month. It may have created a stir in the market but we have to bear in mind that there are so many factors that affect the market performance and the valuation of shares and that include the fundamentals of the companies and the current status of the country in terms of inflation rate and all other factors.

Again, I don’t claim to be an expert. But if you’d ask me whether it’s a good time to invest or not, here are my personal opinions on this.

  1. If you are a long term investor, continue to add shares because you might get them at a much lower price this month. And this might give you good returns overtime.
  2. If you are a short-term investor or an active trader, pay close attention to the fundamentals of the companies that you want to buy or have shares with. Or better yet, take a break from the stock market for now, anyway, it’s vacation season for many global fund managers.
  3. If you feel that it’s really a good time to invest in the stock market, then do it at your own risk. At the end of the day, it’s still you who will decide for your own funds.

To all of us, good luck and happy investing! Enjoy the ‘ghost month’ with patience and positivity.

Disclaimer: I’m not a banker, fund manager, stock market expert, or investment guru. I’m just a typical newbie in the stock market, who’s trying to share what I know about investing to the readers of this blog. I don’t represent or endorse the companies or entities mentioned in this post. If you find this article substantial in your investing venture, then take it at your own risk and be responsible for your decisions. I am not liable for whatever results this may bring about in your investments.