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Investment Stock Market

Goodbye, JAS (Jackstones, Inc)

After putting JAS on HOLD for 4 long months, I finally sold it today at a loss. It’s difficult for me to sell a losing stock but I had to do it, otherwise, the loss would even get bigger.

I bought it in June 20, 2014 when the price was ranging from P5 to P5.5 per share. It seemed to be an active stock during that day or week so when it hit P5, I bought 2,000 shares thinking that it was a good opportunity. Unfortunately, it didn’t happen like I speculated.

One of the big mistakes in investing in the stock market is not researching enough about the stock. In short I, myself, just speculated and sadly, it didn’t work for JAS. Another lesson learned for me.

I actually had no plans of selling JAS this early but I received a TENDER OFFER from JAS to sell it at P2.7 per share. Based on how I understood the memo, JAS will be handled by another group of directors or company and will make it private which means that they’ll remove it from the public listing of the Philippine Stock Exchange. Having said that, they’re encouraging stock/shareholders to sell their remaining shares with JAS until November either through the tender offer which is P2.7 per share or by selling it directly based on the current market price.

Like I said earlier, I only have 2,000 shares of JAS which I bought at P5 per share and considering their tender offer of P2.7 per share, I don’t think it’s fair to let go of it at almost 50% loss. The market price of JAS as of this writing is P3.9 per share but the highest bid is P3.75. Without thinking twice, I sold all my remaining shares with JAS at 25% loss. Yes it’s a loss but it’s definitely better than the 50% loss if I accepted the tender offer.  

It’s also a good thing that I didn’t invest much on this stock. Had I invested more, for sure that 25% loss would be equivalent to a pale of tears and regrets.

Goodbye now, JAS (Jackstones, Inc)! I only had you 4 months ago but I stayed with you until the end of your public listing. I got my capital back at a loss but the lessons I learned were all worth it. Hope you get better and more successful in your new home. 

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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.”

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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.

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Investment Stock Market

Think Positive – Part II

7/31/2014

My patience and positivity seem to pay off. After availing the stock rights offered by Manila Mining Corporation (MA) on June 16, almost 20% was added to my MA shares of stock. It was only one fifth (1/5) of my total MA shares but it made a huge impact on my portfolio because I bought the stock rights at a much lower price. From almost 10% paper loss, it went down to less than 2% when the additional shares officially showed up on my portfolio on July 1.

As what I’ve shared on my previous article Think Positive – Part I, MA has been down since May. And I got used to it. Sabi ko nga sa sarili ko, manhid na ko. But two months after seeing the consistent double digit loss percentage, for the very first time, MA showed up with an amazing 8.51% gain!

And seeing positive 23% day change the second day after I got my stock rights for MA was absolutely phenomenal. I could feel my ears clapping in joy and excitement. (OA lang 🙂 )

MA has been green since then until the last few trading days of July when it slowly moved down again. Today is the 31st of July and as I write this, I took a peek at my portfolio and saw MA showing red numbers again. 🙁

Could it be that it’s ghost month? (I’ll tell you more about this on my next post.)

 

This is how stock market works. Just like the roller coaster, sometimes it’s high sometimes it’s low. You try to follow the ‘buy low sell high’ strategy but it doesn’t always happen that way. Sometimes you have to hold on to it, pause for a little while and come back later. Truly, patience is the key. And I’m staying positive on MA.

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Investment Stock Market

Think Positive – Part I

6/24/14

What a great day to wake up in the morning, celebrating my husband’s birthday and morning play time with Macey. Not only that, my portfolio looks better today. From 25% to 18% loss last week, now it’s down to 12%. Wow! I haven’t seen this in a while. I’m overwhelmed with the movement. It looks strange to me but I like it. Who isn’t?

My initial goal was to be an intra-day trader – to buy and sell a stock within the day with a profit. I did that a couple of times. But trading days aren’t always the same. There are days when I’m lucky that I get good returns. But there are also days when the stocks go down suddenly and stayed down for a couple of days, weeks, or even months. And that’s what happened to some of my stocks in my portfolio. I bought a stock when it was volatile. Then the market went down. It continued to move down until it stayed there for a while.

MA (Manila Mining Corporation) is one of the stocks that I have on my portfolio. 50% of my portfolio comes from this stock. I bought this stock when I was on my first week in trading. And even if had a little background in stock market, I wasn’t confident with what I was doing. As I was watching the movement of its price, I thought that it was a good buy. So I bought it using half of my total trading capital. What a risk-taker, am I not?

Few days later, the price went up and got a paper gain of about 5-10%. I was very excited to sell it but it seemed like the stock was going to move even higher. So I held it for the time being. Then I went to the province with my family for our 2-week vacation. When I got back, whew! 25% paper loss!

It’s been down since then. So the initial goal of being a short-term trader suddenly became a long-term investor. I was stuck. I had no choice, unless it’s okay for me to sell this stock at a loss. So I held it for the meantime. I even added more when they offered stocks rights. I guess losing is really a part of learning.

This week, this stock started to move again. It’s crawling but I’m positive that’s it’s getting there, slowly but surely. So I’m holding on to this stock for now. I will just consider this as a long term investment. But if it reaches maybe around 20% gain, then that might be the time that I will finally let go of this.

Click to read Think Positive – Part II

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Image Source: http://cipworldwide.org/wp-content/uploads/2012/12/think-positive.jpg

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Investment Stock Market

Today’s Profit from IRC, 5%

6/18/14

I tried my luck today in trading even if I see those red numbers on my portfolio. I just pretended that they don’t exist. With 5% account balance and buying power, I used it to buy a ‘hot’ stock which is IRC.

This stock has been moving sideways in the last 30 days based on the historical data from the PSE website. It didn’t even reach 1.30 in the past month until this morning when it surprised everybody with its remarkably high opening value of 1.30. Then it continuously moved its way up to 1.46 which is the highest so far in the last 30 days.

I was more of a speculator as I watched the changes of IRC’s value. I saw it when it was still at 1.37. Then it suddenly reached 1.46 and how I wished I bought it earlier. And then it went back down to 1.35 which seemed to me like I was being given a chance to hop in and join the ride. So I took it as an opportunity and bought it at 1.35.

After lunch, it slowly crawled from 1.39 to 1.41 going vice versa. I knew it went up to 1.46 earlier but it’s really hard to know what will happen next. It continuously moved slowly but surely until it reached 1.44. I was almost done setting a sell price of 1.45 when it went back down to 1.43, then 1.42, 1.41, 1.40.

I waited until the price got stable. That time the values were just moving from 1.41 and 1.42. Then I made my decision which was to sell it at 1.43. In less than an hour, it was sold. And this stock closed at 1.40 today.

What I learned from today’s trading experience is that, if I already see that the trend is moving up, join the ride if given the opportunity – that’s when the value goes down a bit but has a big chance of going up again. If you missed that chance, then you’ll be left behind, while others are hopeful to gain profits.

Another thing is, set a goal. It seems easy but it’s actually difficult especially if greed comes into place. Greed can destroy our goals thus we have to stay focused. If you plan to sell it at 1.43 based on whatever analysis you used, then stick to it. Yes it may go up to 1.46 or 1.5 or 1.8 but we don’t know if it’s really going to happen. So don’t get fooled by greed. Set a realistic and attainable goal.

Lastly, be content with what you have gained from your trading. No matter how big or small it is, it’s still a win. Not everybody wins in a game. While there are winners, there are also losers. You’re lucky because you’re the winner today. So be satisfied with what you got. My trading capital today was only 5% of my total capital. It gained 5% and I’m happy. I knew it wasn’t much and I would have gained more if I had a higher capital but I’m satisfied with it. It’s still better than putting it in a bank with less than 1% interest per annum. My 5% gain today, good enough to buy a month’s diaper supply for my rockin’ baby girl! 😉

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Investment Stock Market

My portfolio shows 25% Paper Loss

6/17/14

I read somewhere that stock market trading is not about IQ but more on EQ. I couldn’t agree more on this. Seeing my portfolio losing almost 25% of my total account equity value is really heart-breaking. Yes, I wanna cry! Huhu! 🙁

Before I started trading, I tried to convince myself that I won’t let my emotions affect me especially when I’m losing ‘money’ on a stock. And yes, I’m doing it right now. I’m trying hard. It’s truly hard but I’m still holding on to it. I’m still hoping that one day, these stocks that I previously picked will go back on top and regain their momentum. Pretty soon hopefully.

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Investment Stock Market

Still Trying to find a Good Strategy in the Stock Market

6/5/2014

They say that you need to be prepared before you enter the stock market.

First, you should have at least researched some information about how it works and the risks associated with it. Second, you need to have money that you’re going to use to fund your account especially if you’re going to be an active trader. This is the money that you think you can afford to lose and not the money that you expect to use to pay for your next bills. Third, you need to have a strategy. And for me, this is the most difficult but the most important thing to have before venturing into the stock market.

When I entered the stock market, I had a little background about stock market from what I’ve read in the articles and blogs online. I invested a small capital to fund my account to start trading. But I didn’t have the last thing, which is also the most important of all. That’s strategy.

What I only knew is that when you’re in the stock market, you buy low and you sell high. It sounds easy and I thought anybody can do it, including myself.

That’s what I thought. That stock market is just as easy as one two three.

As I trade, I try to follow my rule of thumb: to buy low and to sell high.

Yes I tried… I try… And I keep on trying. But contrary to what I initially thought, it’s indeed not easy.

I try to buy a stock when I feel it’s low and I plan to sell it when I gain about 5-10% profit. But most of the time, the market doesn’t seem to go my way. Thus I get stuck and I just find myself waiting until the price goes up again before I sell it. Sometimes, I sell it even if it’s way lower than my buy price just to cut the losses. And I ‘go home’ feeling down.

I don’t know what my strategy is. I don’t even know what I’m doing now. I feel like I’m going nowhere. And yes I know I’m in the danger zone!

But I believe experience is the best teacher. Had I not entered the stock market, i wouldn’t know how it actually feels to be into it. And most of my losses are giving me a lot of lessons.

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Image Source:

http://blogs-images.forbes.com/work-in-progress/files/2012/09/Strategy.jpg

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Investment Stock Market

Thanks NIKL for my P27 gain, but greed please go away!

I bought NIKL at a price of 25.2 on April 29, 2014. It was my first day in trading.

The next day, the price stayed lower than my buy price and I got bothered. I set a goal that I will sell it as soon as it hits a price higher than my buy price. When it hits 25.5 on the third day, I sold it all without hesitations. I met my target and so I let go of it with a net gain of P27.53.

But the price went up further in the following days. From 26 to 27 to 28 and even 29!

Ugh! I should have held it rather than selling it too soon. Yes greed was slowly killing me at some point. I regret that I sold it early. But I always keep on reminding myself that I should not be controlled by greed.

I guess, one lesson learned for me is when I set a goal, I should follow it, accept the gain or loss, and try not to check it back nor recompute it using its current price especially if it’s higher now than when I sold it because it’s just going to make me feel bad.

Another thing is, I should always think of my decision positively. It’s okay that I sold it early. I may not have earned much but at least I didn’t lose much either. That 27 pesos, no matter how small, it’s a real profit. It’s even higher than a month’s interest in the bank for your P50,000 savings account.

You might say, wehhh? But yes, it’s true. I once had 50,000 on my savings account back then (yes back then :)) and I was happy to see it earned 20 pesos interest. Not bad, was it? It was passive income after all.

But actually, I’m just kind of ‘sour graping’. I’m just trying to make myself feel better with that supposedly higher profit that I earned had I not sold NIKL too soon… Oh greed, stay away from me!

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Investment Stock Market

18% GAIN = Bought it NXT; Held it JSI; Sold it JAS

6/4/2014

Some of you might be wondering what the title is all about. It looks like an equation or a formula, but it’s actually not. 🙂

This is about a stock that I bought a month ago with the stock code NXT for NextStage, Inc.

Few days later, I searched for it on PSE and I couldn’t find it. I found out that the name was changed to Jackstones, Inc. with the code JSI.

The price movement of this stock was downward and sideways before I went on my 2-week vacation in the province so I held it for the meantime.

When I came back, I couldn’t find JSI anymore. I realized that it changed its code again and this time to JAS.

Still confused?

Okay, I understand. 🙂

To make it simple, NXT, JSI, and JAS are the same company.

 

Anyways, I bought this stock at a price of 4.0 on April 29, 2014. It was the same day when I bought BLOOM and my very first day in stock market trading.

All that same day, the lowest recorded price was 2.95 while the highest was 4.42.

In the next 20 days, the price stayed consistently lower than my buy price. There was only one day that it went up to 4.15 and it happened when I was out of town.

Days after my vacation, the price stayed higher than my buy price though it went down a bit at times.

I didn’t invest much on this stock because I didn’t know much about it. In fact, when it was at its low points, it didn’t affect me that much because I knew that it wasn’t a big loss for me anyway. But when my paper gain went up to 20%, I wished I bought more. Yes, I get greedy too sometimes. I think everyone in the stock market does at some point. 🙂

Yesterday, it recorded the highest price of 5.50 in the last 30 days. Today, the price was constantly changing and I couldn’t predict if it’s going up further or if it’s going back down again. It hit 5.20 at one point and went down to 4.57. When it stayed quietly on 4.80, I decided to sell it.

It could have gotten higher. And yes it actually did. It even hit 5.0 again. But I tried to control that greed in me. I went back to my goal. My target was to sell a stock at a 5-10% gain. And I sold it at almost 18% gain. Not bad right? Not at all.

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Disclaimer:
The featured image does not represent the company or stock mentioned in this article. It’s purely a personal choice and the author is not to be deemed liable for any copyright because no attribution was required.