PSEi is on a Downtrend
As it is, the Philippine Stock Exchange Index (PSEi) has been on a downtrend since November 2010 and may continue on the same pattern for the next few months. If this is to be, are you afraid of putting your money in the Philippine Stock Market? Let me help you answer that question by what the richest investor said,
"A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful." - Warren Buffet, Richest Investor in the WorldAre you fearful of buying now? Maybe you are part of the majority who are fearful in investing in the stock market today? If you are, take courage in Warren Buffet's buying/selling rule. To encourage you even more, a Filipino who is my mentor became a multi-millionaire because he bought great companies when the Philippines experienced crises. While many were selling their shares when the prices went down because of the coup d'état, he was there buying shares of solid companies at very cheap prices. Every time there was a crisis, he was excited because he knew he could buy shares of great companies at bargain prices. Today, he is a multi-millionaire and continues to do the same investment strategy.. What strategy? Just in case you didn't get it the first time, it is this: Buy shares of great companies at bargain prices when many are selling because of fear of the unknown.
So, are you ready to buy and get rich?
Which Companies to Buy in the Philippine Stock Market 2011
The biggest online broker which happens to be my online broker, CitisecOnline, released a report sometime February 2011 which presents several companies that we need to keep a watch on. More importantly, these are the companies that we need to start buying using the money cost averaging method. If you are not familiar with money cost averaging, you may want to read my previous post about it HERE. Meanwhile, here is a list of companies you need to start buying. The list includes Alliance Global (AGI), Ayala Land (ALI), Banco de Oro (BDO), Bank of Philippine Islands (BPI), PNOC Energy Development Corp. (EDC), Intl. Container Terminal Services (ICT), Metropolitan Bank and Trust (MBT), Megaworld Corp. (MEG) and Nickel Asia, Corp. (NIKL). For as long as the price is below the "Strong BUY at" range, you consistently buy a fixed amount every month until you hit the "target price". The potential gains are also presented below so you have a better idea how much you stand to earn.
Name
|
Current Price
|
Strong BUY at
|
Target Price
|
Potential Gain
| |
AGI
|
Alliance Global
|
11.50
|
14.70
|
17.25
|
50%
|
ALI
|
Ayala Land
|
15.12
|
16.02
|
19.75
|
31%
|
BDO
|
Banco de Oro
|
51.00
|
47.90
|
60.00
|
18%
|
BPI
|
Bank of Philippine Islands
|
55.05
|
51.20
|
60.00
|
9%
|
EDC
|
PNOC Energy Development Corp.
|
6.00
|
6.93
|
7.78
|
30%
|
ICT
|
Intl. Container Terminal Services
|
41.55
|
38.20
|
50.00
|
20%
|
MBT
|
Metropolitan bank and Trust
|
63.90
|
65.10
|
84.50
|
32%
|
MEG
|
Megaworld Corp.
|
2.04
|
2.37
|
3.12
|
53%
|
NIKL
|
Nickel Asia, Corp.
|
20.20
|
18.40
|
22.50
|
11%
|
Note: A "strong buy" is a value considered to be fundamentally cheap given the prospects of the industry and of the company.
So, what are you waiting for? Make a decision on how much you are going to invest every month in the stock market. Have you already decided what company to buy?
May you achieve true success!
Bryan Uy
Investing Pinoy
Do you want to receive regular updates about investing from InvestingPinoy? Don't be the last to know how to earn from different investment strategies. Subscribe below and start learning about investing for f.ree!
PS. My mentor in stock market investing and business is Bo Sanchez. He has an online coaching club where he teaches one to be truly rich. You can try it out for free and enjoy the same benefits I have enjoyed. Go to Bo Sanchez's TrulyRichClub.
PS. If you want to invest in real estate properties, visit www.houseforsalephilippineswithphoto.blogspot.com.
