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Surprised? Not at all.

The Philippines’ inflation rate has been the main highlight this 2018. Why? It went beyond Bangko Sentral ng Pilipinas (BSP)’s projected target and despite the monetary authorities’ measure implemented in order to reduce and stabilize it, their efforts proved futile.

Catch me in my live training events! (quick plug)

The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.

Stock Smarts General Santos – October 6 – 7, 2018
Stock Smarts Cebu —  October 27 – 28, 2018
Stock Smarts Taiwan – November 3
Stock Smarts Davao — November 10 – 11, 2018
Stock Smarts Dubai —  November 16 – 20, 2018
Stock Smarts Singapore —  November 28 – December 2, 2018
Stock Smarts Manila —  November 24, 25, December 8, 9 & 15
Top 10 Stocks for 2019  —  December 15, 2018

Last August, the inflation rate stood at a surprising 6.4% despite the early start of BSP’s counter measure for the increasing rate. The BSP consistently increased it key policy rates, the latest one made on September. Today, October 5, the Philippine Statistics Authority (PSA) finally released an update on the rate and it’s for the month of September.

The September inflation rate is at 6.7%, higher by 0.3%. If truth be told, we were all expecting that the inflation rate would have at least calm down to a considerable extent but, instead, it went otherwise. The Department of Finance (DOF) and the BSP projected inflation to be at 6.4% and 6.8%, respectively.

For 2018, the BSP has readjusted its inflation target to 6.3-7.2%. The increase in the inflation rate was due to the following: First, acceleration of food and non-alcoholic beverages index on September. Second, the effects brought about by the recent calamity that hit the country which wiped out P26.7 billion worth of agricultural goods. Third, oil price hikes in the last 8 consecutive weeks.

PSEI AND JOLLIBEE UPDATE - YouTube

The effects of this vary among regions in the country. In the National Capital Region (NCR), the month of September resulted to 6.3% which is better than that of 7% the previous month. In the other regions, it is now at 6.8% which is higher than that of the previous month which was at 6.2%. The top three (3) recorded inflation rates for September are the following: Bicol Region, Autonomous Region in Muslin Mindanao and the Ilocos Region.

In order to address the problem with the supply of agricultural goods, the President has actually issued an Administrative Order removing non-tariff barrier in the importation of agricultural products. This will not directly solve our inflation problem but it is the best immediate action to take.

The Bottom Line

The interest rate of the BSP has already been has already been increased four (4) times this year and yet the rate keeps on rising. This can only mean one thing: Using policy rates to solve our problem of inflation is not the most effective. The are other contractionary measures the BSP can use yet it chooses to use rates when no direct positive effect can be seen.

Because of the unsolved inflation problem, other key economic factors are at stake like the Philippines’ Gross Domestic Product (GDP), foreign market investments and even the publics’ confidence in the present government. It is almost the end of the year and the third quarter economic results have not given us good numbers. It’s only a few months left before 2018 ends and it is a challenge for the government to take the necessary measures before things go out of whack.

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders

The post SEPTEMBER 2018 INFLATION HITS 6.7% appeared first on Marvin Germo.

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The Philippine economy still has some bright spots

In this short article, I will discuss the Philippine economy and see where we stand today and what we can expect in the future.

I will pick out four specific areas we can all be interested in and take in spite of a lot of negative economic information there’s still a bit of good that can be celebrated on.

Catch me in my live training events! (quick plug)

The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.

Stock Smarts General Santos – October 6 – 7, 2018
Stock Smarts Cebu —  October 27 – 28, 2018
Stock Smarts Taiwan – November 3
Stock Smarts Davao — November 10 – 11, 2018
Stock Smarts Dubai —  November 16 – 20, 2018
Stock Smarts Singapore —  November 28 – December 2, 2018
Stock Smarts Manila —  November 24, 25, December 8, 9 & 15
Top 10 Stocks for 2019  —  December 15, 2018

The first area we can see a sustained growth is in construction materials such as cement and aggregates. We all know that it is high time that the Philippines invest in infrastructure and this is the key driver for strong growth in this area.

Globe Telecoms has continued its expansion to become one of the biggest and strongest companies here in the Philippines. The infrastructure just for Globe Telecomes alone account has had a significant effect on demand of materials, which is pushing imports to be high.

Now, this industry sector responsible for supplying materials for construction and infrastructure projects is at a 34 year high!

4 BRIGHT SPOTS IN THE ECONOMY - YouTube

It is well known, that Filipino’s like to spend money, and this translates in to product consumption. With inflation now the highest seen for the past nine years consumption the Philippines still remains to be the second strongest in consumption for the whole of the ASEAN area.

The Philippines has been the number one consumer of products in ASEAN over the past few years only to be dethroned by Malaysia.

The next area to look at that has made a big impact on the economy is tax revenue collections. The BIR has collected far more taxes than previous administrations and these taxes have been collected on time.

This allows the government to spend on projects without borrowing. If we look at tax revenue collections against Gross Domestic product (GDP), it is a staggering. The collections are the highest in 21 years.

Another positive side to the tax collections is that credit agencies like moody’s are more likely to give the country a better rating which in turn makes interest rates on borrowing money less and money more accessible should the government need to borrow.

Finally, I will point out employment. Employment is extremely important to our economy. The more people working the more people spend in local businesses.

This clearly has a knock on effect to the economy, with greater revenue collections by the BIR, more spending on telecommunications and so on.

So inflation is predicted to keep rising this year maybe to 8%. Should you be worried?

OFW remittances continue to be strong. With over 10 Billion US Dollars remitted in the first 4 months of the year, this could help push our economy.

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders

The post 4 BRIGHT SPOTS IN THE PHILIPPINE ECONOMY appeared first on Marvin Germo.

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Del Monte lists its Philippine subsidiary

Last May 30, 2018, Del Monte Philippines Inc. (DMPI) got an approval from the Philippine Stock Exchange (PSE) and Securities and Exchange Commission (SEC) for its Initial Public Offering (IPO) this year. This would be the Philippines’ biggest IPO in 15 months and is considered Southeast Asia’s largest in the food and beverage firm in nearly 6 years.

The IPO was set to happen on May but it was postponed and is now targeted to be on June 25. DMPI is the first to declare an IPO this year edging out Wenceslao by only a few days since the latter is going to conduct its IPO on June 29. It’s said to be valued at P17.55-billion involving 587.43 million secondary shares. The price of the stock is to be pegged at P29.88. The said IPO will create a public float of 21%. BDO Capital & Investment Corp. is the sole issue manager, global coordinator and bookrunner. It will be joined by BPI Capital Corp. and China Bank Capital Corp. as domestic lead underwriters and Nomura Singapore Ltd. and DBS Bank Ltd. as international lead underwriters.

Catch me in my live training events! (quick plug)

The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.

Stock Smarts Melbourne – June 9 – 11, 2018
Stock Smarts Manila —  June 16, 17, 23, 24 & 30 2018
Qatar Short Sessions – July 3 — 7, 2018
Stock Smarts Hong Kong —  July 28, 2018
Stock Smarts Iloilo —  August 10 – 12,  2018

DMPI has been in operation for over 90 years and it’s now considered as the market leader in the most prominent food and beverage manufacturing firms. It manufactures canned pineapple juice and drinks, canned pineapple and tropical-mixed fruits, tomato sauce, spaghetti sauce and tomato ketchup and is advertised under the Del Monte brand and are then distributed to the Philippine market.

About two-thirds of the DMPI’s sales come from the Philippines and the remaining comes from its export under the S&W brand and private label brand. On a global scale, DMPI is competitive as it is also one of the world’s largest and fully integrated pineapple production companies.

The company claims to have the largest integrated pineapple operation in the world having a 23,000-hectare pineapple plantation in the province of Bukidnon. Aside from its Philippine market, DMPI also supplies to Del Monte Pacific Limited (DMPL) which distributes Del Monte-branded products to several markets in Asia, Europe and America.

DMPL is an investment holding company that has subsidiaries engaged in the manufacturing of packaged fruits and vegetables, canned fish and fresh pineapple, tomato-based products, among others. It is listed both in the PSE and the Singapore Stock Exchange.

Proceeds of IPO

With the PSE and SEC approvals, DMPI is now authorized to conduct its IPO. It approved the initial listing of up to 2,797,320,002 common shares. The company is offering 587.4 million common shares at a maximum price of P29.88 apiece. The final price will be announced on June 6. The shares will be offered to investors from June 8 to June18.

The net proceeds of DMPI’s IPO will be utilized by its parent company Del Monte Pacific Ltd. (DMPL) to prepay and repay the loan facilities amounting to P6.8 billion and to settle certain payables totalling to P3.544 billion. P6 billion will refinance certain financial obligations of the DMPL group in order to reduce its leverage position thus strengthening its balance sheet.

As you all knowI am not a big fan of companies who sell secondary shares and who would use majority of the proceeds to pay off debt. I am a big fan of companies who would focus on expansion more than debt.

I hope this helps you!

Here’s are some videos of old IPOs:  CLI

Cebu Landmasters IPO - YouTube

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders

The post DEL MONTE PHILIPPINES 17 BILLION PESO IPO THIS 2018 appeared first on Marvin Germo.

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Expansion on track

This is more amazing news for Vista Land investors!

Property firm Vista Land & Lifescapes, Inc. (VLL) is targeting to have 30 malls at the end of the year which shall be located near its master planned projects. This is all part of its expansion program. By this, the company in its portfolio have a gross leasable area to almost 1 million square meters. The malls that will be built shall have the All Day Supermarket, All Home, Coffee Project and Bake My Day which shall cater to the needs of its nearby community. These shall be under the retail arm of Manuel Villar, Jr.’s All Value Holdings Corp. (AVHC). AVHC currently maintains 72 All Day Convenience stores and it plans to open 100 of it this year.

Catch me in my live training events! (quick plug)

The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.

Stock Smarts Melbourne – June 9 – 11, 2018
Stock Smarts Manila —  June 16, 17, 23, 24 & 30 2018
Stock Smarts Hong Kong —  July 28, 2018
Stock Smarts Iloilo —  August 10 – 12,  2018

VLL has just recently opened its 23rd Vista Mall and the company is positive that it can reach its goal this year. The expansion program will include the construction of seven to eight malls in Vista City, on the boundaries of Muntinlupa, Cavite, Las Pinas, and Laguna. From this 30-mall goal this year, once it reaches its 50th Vista Mall, it will follow VLL’s master planned communities in the entire country.

VLL currently has 23 pipeline projects in its portfolio. They’re not only focusing on building housing communities but also towards making self-sustaining communities with retail, dining destinations, schools, hospitals, universities and the like, so it’s basically giving an overall complete experience to its homeowners.

As for its All Day Supermarket, it plans to open 13 more branches to double its total outlets. 10 to 20 Home depot stores will be added this year having a total of 26 to 28 stores. Its Coffee Project outlets are soon to set on 45 to 50 locations this year; it currently has 24 branches.

On a Bigger Picture

Aside from VLL’s plans this year, let’s look at their other long-term projects. First, the company plans to scale up its shopping malls to 60 locations by 2020. The company is positive that the expansion of their leasing business through Starmalls Inc. will add 38 more malls in the next 3 years. They also expect a good performance in their industry given the strong demand for commercial spaces and housing products due to good economic indicators. This can be seen from the growth of an individual’s disposable income, OFW remittances over the past years and present sound macroeconomic fundamentals.

VLL has already allotted P50 billion for its CAPEX budget for 2018 and a significant portion of it will be used for the construction of malls – which is their in line with their target this year and on 2020. Its investment on leasable spaces has had a fruitful contribution to their financial health and double-digit growth in their residential business. This 2018, VLL is aiming for a double-digit 10 to 15% consolidated net income growth. VLL is slowly penetrating the market; it has established its presence in more than a hundred cities and municipalities in the country.

What does the technicals say. Check out this Stocks By Request of VLL

STOCKS BY REQUEST: SBS BLOOM VLL - YouTube

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders

The post VISTA LAND WILL HAVE 30 MALLS BY YEAR END appeared first on Marvin Germo.

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First IPO this year

The Philippine Stock Exchange (PSE) approved the integrated property developer and construction group D.M. Wenceslao and Associates Inc. (DMWAI)’s plan for an Initial Public Offering (IPO) worth as much as P15.5 billion. The said IPO will happen this June 2018. The company is authorized to sell 679.17 million common shares with a price per share up to P22.90.

The controlling shareholder Wendel Holdings Co. Inc. has the option to sell up to 101.88 million shares. The equity deal will be priced this coming June 7. The IPO will run from June 18 to 22 bringing about 20% of DMWAI’s outstanding shares. BPI Capital Corp. and Maybank Kim Eng will be the book runners and underwriters for the said offering.

Catch me in my live training events! (quick plug)

The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.

Stock Smarts Melbourne – June 9 – 11, 2018
Stock Smarts Manila —  June 16, 17, 23, 24 & 30 2018
Stock Smarts Hong Kong —  July 28, 2018
Stock Smarts Iloilo —  August 10 – 12,  2018

DMWAI has been in the land reclamation and infrastructure construction business for more than 50 years. 78.6% is owned by Wendel Holdings while the remaining 21.3% is owned by Delfin Wenceslao, Jr., the founder, president and director of the company. One of its known accomplishments is assisting the government in reclaiming Aseana City while thereafter obtaining a title to a 56.8-hectare portion of the reclaimed land. The company has completed more than a hundred land reclamation and construction projects. Apart from this, it also developed 3 commercial buildings in Aseana City. The company intends to be listed in the PSE’s main bourse under the ticker “DMW” this June 29.

Last 2017, the company had a net profit of P1.56 billion which is 30% higher from the P1.2 billion profit made in 2016. Total revenue amounted to P3 billion in 2017.

The company intends to declare annual dividends at least 30% of its earnings the previous year subject to the availability of its unrestricted earnings.

Generating cash

At the maximum price per share, it will have a market capitalization of P77.8 billion and at least 70% of its shares are intended to be sold outside the Philippines. DMWAI intends to use the net proceeds of the IPO for its real estate development portfolio through a mix of commercial and residential projects. This is a very good IPO because none of the proceeds will go to debt repayment because the company has a very low level of debt. This is one of the the things that I look for every time there is an IPO. You want the money to go to expansion and not debt repayment.

Another bright spot for this is the IPO is composed of 679.2 million primary shares and secondary shares will only be sold should there be an over-allotment.

Philippine market this 2018

DMWAI is the first company to declare an IPO this 2018. While economic growth in the Philippines is of no concern, the economy is seen to be quite volatile this year especially with an inflation rate going beyond the BSP’s forecast. In fact, monetary authorities decided to hike its all-time low key policy interest rate to take measures. More pressures are seen towards the implementation of the TRAIN law and the administration’s plan of focusing on infrastructure spending. The negative effects can be seen in the local bourse which has dropped from its all-time high close of 9,058.62 last Jan.29 to 7,647.51 on May 25. On a global scale, the bourse has also been affected by the rising treasury yields in the U.S. Foreign investors are also leaving the equity market in the country as evidenced by its net foreign selling for the last eight days. The success of its IPO may depend on its pricing; nonetheless, the company is positive that the IPO will turn out smoothly.

Here’s are some videos of old IPOs:  CLI

Cebu Landmasters IPO - YouTube

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders

The post PSE GRANTS WENCESLAO IPO appeared first on Marvin Germo.

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Filipinos abroad

Through my trips abroad, I have met different Filipinos that have fully migrated and have changed their citizenship. They have not gone home in a while, don’t have any work  or source of income in the Philippines but have seen the growth opportunities in the stock market and want to invest in the PSE.

In line with my trip to Melbourne this June (join us for Stock Smarts Melbourne this June 9 – 11) and the past trainings that we have conducted in London, Auckland and Los Angeles this post is to give a brief background on how foreigners can invest in the PSE.

Foreign Ownership Rule

Can foreigners invest in the Philippines? The answer is definite yes, and this includes resident foreign citizens and non-resident foreign citizens. While the Securities and Exchange Commission (SEC) may have imposed limitations, this however, should not be a major concern. The SEC provides that foreign ownership of Philippine company shares should not go beyond 40%. There is also a rule sent by the SEC and the Philippine Association of Securities Brokers and Dealers, Inc. (PABSDI) over new disclosure procedures regarding the foreign ownership rule.

Catch me in my live training events! (quick plug)

The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.


Stock Smarts Melbourne – June 9 – 11, 2018
Stock Smarts Manila —  June 16, 17, 23, 24 & 30 2018
Stock Smarts Hong Kong —  July 28, 2018
Stock Smarts Iloilo —  August 10 – 12,  2018

Now under the country’s foreign investment law, 1991 Foreign Investment Act (FIA), full foreign equity may be allowed in all areas of investment except those reserved for Filipinos under the 1987 Constitution and existing laws. The Negative list provides in detail the businesses and sectors governing the limitation on which foreigners may engage business in. It is classified into two lists: Negative List A and Negative List B.

Negative List A provides the 28 business areas which foreign ownership is strictly not allowed hence it is reserved entirely to Filipino citizens. This includes mass media, retail trade enterprises with a paid-up capital of not less than $2,500,000, and cooperatives and small-scale mining.

Negative List B provides the businesses or areas which foreign ownership is allowed but only up to 40% of a company’s paid-up capital. This includes manufacture, repair, storage and distribution of products or ingredients requiring Philippine National Police (PNP) clearance.

Application and Procedure

Upon knowing the limitations and assuming you’re all set, you may now proceed to the application process. Generally, you need to find an online broker to trade stocks.

If you want to know more about brokers, check this video.

DO YOU NEED A STOCK BROKER? - YouTube

In a general aspect, the requirements and procedures for opening an account across all brokerages are almost the same. With regards to the procedure for application, your broker will ask for the necessary documents and IDs to prove your identity. Online brokers will require all of its applicants to fill up their application and also other forms such as the Customer Account Information Form (CAIF), Foreign Account Tax Compliance Act (FATCA), and The Online Securities Trading Agreement (OSTA). Some brokers will require you to still print their application forms while there are some that have gone totally paperless already.

For resident foreign citizens, the above-mentioned forms should be accompanied by a photocopy of one valid government issued ID. And for non-resident foreign citizens, a photocopy of a valid passport is needed.

After submitting those documents, they will set a video conference with you just to confirm the authenticity of the information in the documents you have submitted. Once your account is activated, you can now buy stocks.

So here’s the not so complicated but definitely the tricky part of stock investing: it’s choosing what stocks to buy. This step involves a hefty amount of discernment. The important thing to really keep in mind is that you should diversify and not to put all your eggs in one basket. Although the general trend of the stock market in the long-run is always going upward, we cannot avoid the short-term risks and volatilities. Remember that investing in equity means you should have an appetite for risk.

If you have not invested in the market yet this video is for you:

HOW CAN YOU START INVESTING IN PHILIPPINE STOCKS? - YouTube

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders

The post HOW CAN FOREIGNERS INVEST IN THE PSE? appeared first on Marvin Germo.

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Oil Price increase: What could cause this?

Experts, including the Bank of America, believe that oil prices might potentially increase the Brent crude as high as $100 per barrel in 2019, which was last experienced on 2014. Now the question is: If it were to happen, what could be the cause(s)? Many are well-aware that this surprising price increase is mainly about the collapsing condition of oil production in Venezuela and the potential export disruptions in Iran.

Catch me in my live training events! (quick plug)

The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.

Stock Smarts Melbourne – June 9 – 11, 2018
Stock Smarts Manila —  June 16, 17, 23, 24 & 30 2018
Stock Smarts Hong Kong —  July 28, 2018
Stock Smarts Iloilo —  August 10 – 12,  2018

US President Donald Trump pushes the oil price by deciding to exit the Iran nuclear deal. Brent, considered as the global benchmark, increased above $77 per barrel. Prices continue to increase by 15 since the start of the year and it’s continually increasing. The latest update shows that oil price increased by 8% last month. Investors are worried about the Iran tension as it is a major oil producer in the world, so oil supply disruptions could significantly affect all aspects of economic performance.

To ease the exit of its Iran agreement, the US President vowed to impose sanctions on the OPEC nation. Iran actually increased its oil production to approximately 3.8 million barrels a day which is more than a million barrels a day production since 2016. Another factor reducing the oil supply is an agreement between OPEC and other major oil producers, including Russia, slashing their output. Nearing the end of its agreement, the suppliers might continue working together to prevent prices from falling.

Impact on the US and the rest of the world: Why is an oil price increase a problem?

In a macro and micro state, oil is generally consumed in every aspect of the economy. The goods and services that we buy include a company’s expense for transportation. An increase in oil price means that businesses need to add an extra budget for it and this is generally passed to the customer by adding more cost to the goods and services they sell. In a bigger picture, these businesses – whether they have micro or massive operations – can collectively add pressure to a higher inflation rate. Ceteris paribus, this will also slow down economic growth. Higher oil prices make production more expensive for businesses.

While the US is one of the top oil producing countries in the world, it’s certainly not on the top list of oil reserves. Meaning, it depends on oil imports also. The oil price increase can only come either from the demand or supply side. From recent news, it’s said that the increase is mostly from supply pressures.

Effects on the PH economy

While we might say that we’re one of the top performing economies in Southeast Asia, the growth may be hampered by an increasing inflation rate. The BSP revised its inflation target to 4.8% in 2018 which is 6 percentage points higher than previously forecasted. Apart from inflation, a sudden spike in crude oil could be detrimental to our economy. As mentioned earlier, oil products are used in almost all aspects of the business – power generation, transportation and machineries. Why should we be worried? The Philippine economic growth may slow down due to the factors mentioned above and while the Philippine peso is slowly deteriorating, the oil price increase would place a higher burden on the poor. It is indeed a challenge for this administration to provide a safety net just in case the worse come to worst while still pursuing its plans for development.

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders

The post OIL PRICES SEEN TO HIT 100 USD PER BARREL IN 2019 appeared first on Marvin Germo.

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Technology stocks are the future

Investing in technology stocks might be the best thing to consider especially when you intend to diversify your portfolio. Technology is the face of the future and there’s a tight competition in the market as companies continue to make ground breaking discoveries and innovations to their products and services. There are still a lot of growing companies out there but in terms of capitalization, profit and growth, only a few landed on my list. This includes Google, Facebook, Apple, Amazon and Netflix.

Catch me in my live training events! (quick plug)

The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.

ICON 2018  —  May 26, 2018
Stock Smarts Melbourne – June 9 – 11, 2018
Stock Smarts Manila —  June 16, 17, 23, 24 & 30 2018
Stock Smarts Hong Kong —  July 28, 2018
Stock Smarts Iloilo —  August 10 – 12,  2018

Google (parent company Alphabet Inc., GOOG, GOOGL)

GOOGL has an exceptional growth and profitability over its operating years and it has been labelled as one of the most advanced and innovative companies in the world. If we look at its earnings and returns, the company has never earned an ROIC below 25% except the recession last 2009. In terms of sustainability, it has the most number of users in the web and their platform has been ingrained in people when using the internet.

The company certainly use most of its CAPEX on R&D expense and it’s said that they are working projects involving Artificial Intelligence (AI) but who knows what other surprising technological advances they may make. As long as they are earning profit for investors, it’s certainly one good stock to invest in.

Market analysts are expecting a 20.5% revenue growth this year and 17% in 2019. As for their bottom line figure, analysts also expect the growth to be at 28% this year and 17.2% in 2019.

Facebook Inc. (FB)

Even over a billion users, the company is still continually growing. There were concerns about the Cambridge Analytica scandal on data management and potential regulation but it did not significantly affect the company. The price of FB’s shares dropped but it bounced back again to its normal average price. FB provides long term sustainability since most businesses heavily rely on their exposure on the company’s platform.

Some experts forecast that out of all the tech companies, FB is expected to grow the fastest this year. Revenue growth should hit at 34% as more online marketers make the most of its ad campaign. Facebook has consistently been performing well over the years. In fact, in the Q1 of 2018, revenue grew to 49%, EPS growth of 63%and user growth of 13% to 2.2 billion. On top of that, the company has received no less than 29 buy ratings with just 1 hold and 1 sell rating on the Street. It has also been consistently on the top picks on different investing institutions.

Apple Inc. (AAPL)

APPL is always at the front seat of innovation. In fact, it has developed a long term demand from the market from its iPhone series. AAPL’s low valuation is what makes it attractive to investors in line with its industry-leading margins, exceptional brand and stable financial health. Their liquidity can be seen in the amount of cash reserves they have which is a whopping $285 billion and they plan to return over $160 billion to its shareholders. Analysts expect to earn $11.54 per share which is up by 25% from 2017. They expect earnings to grow at 15% in 2019.

Amazon (AMZN)

AMZN is a founder-run company and even so, the founder’s leadership is exceptional; bagging in earnings for its shareholders.

AMZN’s stock price grew by 87% last year and for a five-year price summary, it has grown a total of 513%. Just like any other tech company, it invests heavily on R&D and it spent $22.6 billion on technology and content last year. Last year, it reported a 31% growth in its revenue amounting to $177.9 billion. Majority of their sales come from its online shopping platform.

The good thing about investing in the company is that, it has the willingness to engage in a wide range of industries from fashion business to retail banking.

Netflix (NFLX)

Netflix is one of the fastest growing tech companies out there earning income not only from online video streaming but also from domestic DVDs. If we look at the balance sheet of NFLX comparing data from the Q1 of 2018 and that of the same period last year, we will have the following information: its total membership grew to 26.6% and this is from domestic and international memberships, consolidated revenue grew to an astounding 40% and for its bottom line figure, it grew by 62.8% to $290,124.

The company has reached a total of 190 countries worldwide catering around 524 million people. And this year, they will be spending between $7.5-8 billion on content which will fund for the creation of their 700 new original series and 80 feature films. The good thing is, the company is able to maintain a modest amount of its operating margin bagging in more income for its investors. Since the company is still in the early stages of its expansion project, investors should think of buying this stock.

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders

The post TOP TECH STOCKS TO BUY FOR 2018 appeared first on Marvin Germo.

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Time deposits are safe

If you are looking for an investment but afraid of the risk of losing money, then time deposit is just the right investment for you.

Catch me in my live training events! (quick plug)

The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.

What is a time deposit?

A time deposit is an interest-bearing form of bank deposit that has a specified time of maturity. It requires the customers to deposit a certain amount of money in a bank and wait for it to mature or earn interest without any withdrawals. Interest earnings are determined quarterly, monthly, or annually. Although the amount you deposited will be inaccessible until the end of your time deposit (withdrawing the amount before a specified period of time will incur certain penalties), you will still have regular cash-flow in the form of interest payments.

Should I still put money in Time Deposits? - YouTube

Leading banks

In the Philippines, there are a number of banks to consider if you want to make a time deposit. Although, for all banks it is common that your earnings are higher if you invest a higher amount for a longer period time, there are banks with relatively higher time deposit rates than others. Below is a list of the best banks to include in your bowl of choices if you ever think of putting your excess money in time deposit.

1 year (12 months) Time Deposit of Php100,000 (as of March 29, 2018)

  1. Security Bank Peso Time Deposit
  • Interest rate: 2.01%
  • Investment returns: Php1,608
  • Estimated payout: Php101,608
  1. EastWest Peso Time Deposit
  • Interest rate: 1.75%
  • Investment returns: Php1,400
  • Estimated payout: Php101,400
  1. PBCOM Regular Time Deposit
  • Interest rate: 1.50%
  • Investment returns: Php1,200
  • Estimated payout: Php101,200
  1. RCBC Regular Time Deposit
  • Interest rate: 1.38%
  • Investment returns: Php1,100
  • Estimated payout: Php101,100
  1. Maybank Classic Time Deposit
  • Interest rate: 1.25%
  • Investment returns: Php1,000
  • Estimated payout: Php101,000
      6. Security Bank Peso Time Deposit
  • Interest rate: 1.20%
  • Investment returns: Php960
  • Estimated payout: Php100,960
      7. Chinabank Diamond Savings
  • Interest rate: 1.00%
  • Investment returns: Php800
  • Estimated payout: Php100,800
     8. UnionBank Peso Time Deposit
  • Interest rate: 0.88%
  • Investment returns: Php700
  • Estimated payout: Php100,700
     9. Metrobank Peso Regular Time Deposit
  • Interest rate: 0.88%
  • Investment returns: Php704
  • Estimated payout: Php100,704
     10.CTBC Peso Time Deposit
  • Interest rate: 0.85%
  • Investment returns: Php680
  • Estimated payout: Php100,680

These are only the best choices depending on the interest rates. If you have other factors to consider, such as the proximity and accessibility of the bank to your home/workplace, then your options may vary. Furthermore, some banks sometimes offer promotions including a surge of their time deposit interest rates. You may also want to watch out for these. Of course if you want growth the stock market is still the best place where you can make your money grow over the long term. 

New book and other books on Investing, Business and Finance.
I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders

The post BANKS WITH THE BEST TIME DEPOSIT RATES appeared first on Marvin Germo.

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Companies In charge

The Consortium for the NAIA upgrade this 2018 is made of 7 conglomerates namely Aboitiz InfraCapital Inc., AC Infrastructure Holdings Corp., Alliance Global Group Inc., Asia’s Emerging Dragon Corp., Filinvest Development Corp., JG Summit Holdings Inc. and Metro Pacific Investments Corp. The consortium has actually submitted its P350 billion proposal to the Department of Transportation last February 12, 2018 and such proposal would cover a 35-year concession period.

The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.

Inclusions of development

The improvements to be done in the airport would be done in two phases. The first phase will focus on the expansion of the terminals in the existing land area. For phase two, it will include the construction of an additional runway, taxiways, and passenger terminals. The said proposal will also include a construction of a people mover linking its existing terminals while connecting the airport to the existing mass transport system in Metro Manila like the Light Rail Transit (LRT)-1 system extended to Cavite. Apart from that, the Mega Manila Subway project would be commenced immediately.

Pros and Cons

Although the government hopes for a shorter concession period in order to address the airport congestion directly, the disadvantage is that, the consortium will not be able to build a third runway due to the lack of time. The expansion is limited to the improvements in its terminals and other facilities.

Competition is tight

Considering the shortened concession period, there were proposals made from other companies towards the construction and expansion to be made of the airport. Among those include Megawide Construction Corporation and GMR Infrastructure Ltd. of India which offered a shorter concession period for only 18 years. With regards to the guidelines and rules for accepting and processing proposals, such are evaluated and assessed under the Build-Operate-Transfer (BOT) Law implementing rules and regulations (IRR). This means that the company or group that submits first will be given priority. If the first company or group does not satisfy the necessary requirements, it is only then that the next succeeding proposals will be reviewed.

Impact

The NAIA’s consortium proposal will be given one year for its approval so deadline will be on December 31st of this year. Records show that last year, there were 42 million passengers which exceeded the airport’s passenger capacity of 31 million annually. If the consortium’s proposal will be approved and given a go signal, one of its expected advantages is an increase of the airport’s capacity. By 2020, it will be increased to 47 million and two years after, 65 million.

The improvements to be made to the airport will indirectly bring an economic benefit to the country. First of all, if there’s a larger airport facility, more flights and passengers can be accommodated. This means that if there’s an active transport of people and goods, the economy is expected to generate more income from the funds spent for it. Also, the country will be visited by tourists from around the world and if this happens, businessmen will be encouraged to open their own company here. The effects then will be shown by the macro and micro economic indicators.

New book and other books on Investing, Business and Finance.
I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders

The post NAIA CONSORTIUM TO SHORTEN CONCESSION PERIOD appeared first on Marvin Germo.

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