STOCKS 101 | P/E Ratios by Industry (from PSE Data) - End of September 2015

Last August 2015, I released a mid-August Investment Guide tabulating the price-to-earnings (P/E) ratios of some public Philippine companies. It was also on that post linked above where I (somewhat po hehe) thoroughly explained what a P/E ratio is and does.

(I'm making this post extremely short para 'di na po kayo ma-bore hehe. Enjoy and have a good one!)

Today, I am posting an updated list of P/E ratios for several PH companies that are being traded in the market. It can be noted that since the one-day 7.20% loss in August 24, some stocks have managed to recover, while others continued their downward trend.

What I discovered is that almost all companies had their P/E ratios lowered which means, from a value investor and share price-point perspective, some stocks are less expensive (or in another sense, cheaper) than they were in August. So, how do these stocks' P/E ratios fare relative to its competitors in the same sector/category?

1. BANKS AND FINANCIALS

It must be noted, however, here that price-to-book (P/B) ratios are better indicators for banks because they have a lot of assets and liabilities that are constantly valued at market prices.

P/E Relatives

Cheapest: UBP, RCB

2. COMMERCIAL AND INDUSTRIAL

P/E Relatives

Cheapest: EEI, IMI, MWC

Some companies are a bit highly priced like media companies ABS and GMA7 because they know election is just several months ahead. And election means big bucks! ICT, if I remember, had a P/E of 30+. Now, it's nearing the 20-level, which means it has gotten a lot less expensive. PCOR, on the other hand, still possibly suffering from losses has a negative P/E. This may mean that investor currently value the stock at or pay 46 pesos for every 1 peso loss made.

3. CONGLOMERATES

P/E Relatives

Cheapest: FPH

FPH which holds shares in EDC and FGEN, if I am not mistaken, has the lowest P/E ratio in this list. Some PSEi listed companies like GTCAP, A, JGS, LTG, and SM all are priced higher.

4. CONSUMER

P/E Relatives

Cheapest:  DNL

It's a shocker that DNL is currently having a relatively low P/E (and is the cheapest) considering the fact that it was performing well (skyrocketing extraordinarily) in the past several months. It goes to show that the PH market's overall sentiment could not be estimated. Well, JFC and URC are again two of the most priced (or prized haha) jewels in the stock market. They're some of the investors' darlings; I can say; however, do notice their trends (via Wall Street Journal, PSE Edge, Bloomberg, or your online stock brokers' platform), 

Kids (and investors) just love Jollibee and junkfood, I guess hehe.

5. GAMING

P/E Relatives

Cheapest: RWM

The reduced confidence and potential in gaming firms (70% down, yep you're reading that right) in Macau may have had an indirect impact on investor appetite here in the Philippines. To where is the PH gaming industry headed?

6. MINING, POWER, AND TELECOM

P/E Relatives

Cheapest: NIKL (Mining), TEL (Telecom), EDC and FGEN (Power)

We got some extremes in the mining, telecom and power category. On one hand, NIKL is definitely the second cheapest stock in this guide. What has possibly lowered its P/E? Is it China's (a major nickel importer) slowdown? Meanwhile, EDC and FGEN, two power generating firms, are exposing their affordable value as they have the lowest P/E ratios in this power list. TEL, or PLDT, has just gotten a lot more cheap when it neared a 52-week low of 2,240 PHP last September 23.

6. PROPERTY

P/E Relatives

Cheapest: CPG, MEG, VLL

The property category boasts of the widest spectrum with CPG being the cheapest (on a P/E ratio) and real estate giants ALI and SMPH with extremely high P/E ratios. Again, it should be noted that P/E is not the only indicator out there. CPG has a low P/E ratio, but there must be something going on (or probably wala din) which is preventing investors from paying a higher price for that stock. Due diligence should be practiced at all times. Research, research, research. Hehe.

NOTE: 

This guide only shows the strength of P/E ratios relative to one another. (I only mentioned what  are obvious, P/E wise.) 

A low P/E ratio may suggest that at it's current value, it's priced as cheap. But it may also mean that investors aren't just upbeat on it and aren't willing to pay a premium (extra) to own part of the company. On an earnings perspective, a low P/E ratio may indicate that the company has had higher earnings to date which may mean it's a valuable stock for the future, fundamentally, although usually a higher earnings report leads to an increase in the stock price. 

However, earnings aren't just the only representation of a company's financial progress. Is a company piling huge debts? Was it involved in any tragedy? Is it hindered by certain legal processes (judicial proceedings, TROs)? Caveat!

LIFE | 10 Ways to Invest in Yourself

Image Source: Facebook user Heather Santobiz

Everyone wants a fatter purse. Most people want to get rich fast; hence, a lot still get scammed even if they already know it's a scam. But, instead of fattening other people's purse and not getting anything or after benefiting from it, just walking away and getting a lot of enemies, why not use your money to make yourself a better person? Why not prevent greed from taking away what you have - the respect from people around you and human dignity.

Feeling like you're still finding your way, stuck between running after your ideals and trying to get away from the mud of reality? Why not make yourself better by achieving small accomplishments whatever they are?

Haven't you felt much better after investing an extra hour of sleep after a week of work load hell? The most and best important place to put your money and your time is you.

Listed below are ten (10) tips I searched all over the web to help you improve yourself. Hope this post enables you to love yourself more. Definitely, it's worth every single peso!

1. Your health is your wealth.

Eat well. Sweat out the stress; isayaw po ang problema hehe. If thriftiness gets in the way of your plan to go spelunking in one of Bulacan's hidden caves, maybe you could do a substitute like exercising at home or doing yoga or hiphop abs hehe. 

Unwind and/or contemplate; it pays to reward yourself sometimes po. Ako, when I know I've accomplished something good I reward myself by watching a good movie hehe while eating cupcake as I lay on the bed in a rainy weekend hehe.

Sleep sakto! :) For adults, it's around 7 hours. Or go for some naps in the middle of your work. Meet up with old friends; hang out with barkada, 'cause sometimes our friends are our dampeners - our stress relievers.

These simple, yet sometimes difficult tasks to do are what boosts up your health which, as defined by the World Health Organization, is:

a state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity.

2. When you are stuck with deciding which you'd like to do first, do that one thing that matters most to you.

If you're still unable to come up with a decision, stop and make a criteria for decision-making hehe. Grade your decision based on this criteria. Prioritize which ones you'd passionately do first or you'd find easy to do - it depends on how you act on it.

3. Don't be scared to say no.

A lot of things are going on every day. And if you focus on doing the things that would improve yourself, make yourself better, that would mean having to do a rain check to an invitation to a drinking session for cooking first time for your sister. Sometimes, you just have to say no.

If you set that tonight you should have done finishing your third English conversational learning lesson, then make sure it's done before say, practicing swimming at the pool (if this is your lesser priority).

4. Learn something that interests you or do something that you would love to do, when given the time. Ako, I always wanted to learn how to program and make some codes (kasi I figured it's fun if one day I'd have an app of my own, or at least know how to do part of it during my free days).

5. Know your strengths and use them to your advantage.

Ako, I see my time as my strength. I take it as an opportunity to really grow and learn fast. In one programming language I am quite hooked on, I am already 39% done after two days (of course, it's not continuous po, as I allocate maybe 1-2 hours). 

I also utilize another portion of my time to write about things that make me happy like #AlDub (haha), The Voice Kids, stocks, some weird news, flash reports (that seem important to disseminate) or even viral topics.

6. Manage your weaknesses. 

One aspect of my mine that I see weak is my focus. I am sometimes lost at things to do because a lot of them keep running simultaneously in my mind. So, what I do is that I write down all the things that I want to do for the day and allot a specific time for siesta or procrastination so that my gaunt mind would be able to stave itself off too much exhaustion and get back to a better focus. 

7. Read, listen, watch stories from inspiring people.

I prefer reading online than reading hard prints. As of the moment, I watch TED Talks in Youtube, but when I want to kill time, I watch funny pranks. Who doesn't love laughing right? 

You can also download applications or tools that can increase your productivity. There is this app called Forest that once installed and opened will grow from a small seedling while you are doing something productive.

You may opt to listen to trending happy music of any genre on SoundCloud or Spotify as well. Or just go with instrumentals that give calm to the mind.

8. Take calculated risks. Beat your past self. And take everyday as your last breath.

I really see routine stuff as inapplicable to me. I want to do something at least every week. I want to expand my horizons. Last night, I stretched my limits by walking hundreds of meters of walkway to the mall instead of taking the cab or riding a jeepney. It was definitely one of my longest walks in life.

Nakatipid pa ako! Siguro yung hindi ko talaga magagawa ever is pumila sa LRT o MRT from the ground floor at maipit nang maipit sa loob ng tren habang rush hour hoho. Medyo naharass na din ako dun every once in a while; nakakatakot, pati mga lalaki nahaharass na.

When you think that this day could be your last, you would really be able to use your time wisely. :)

9. If there are things you really dislike but you must, just do it.

Sometimes there are things that are really hard to do, no matter how much we try to love them. Ako, ayoko po talaga ng naghuhugas ng pinggan kahit 2 spoons lang yan. But then  I realize if I won't do it, the germophobe in me will be unleashed and the dirty dishes would make me worry more, so I just end up having to do it. I also think of it this way; if I won't clean up, bacteria and other forms of microorganisms might just dwell and multiply extra fast. Scary.

10. Time is still gold; block out time for yourself.

I may have mentioned this in some bullets but it's really important to keep in mind the essence of time. Every hour you spend procrastinating steals you an hour to have a chat with your siblings.

Be kind with everything else, from hugs to compliments, to advice and even love. Yihee. You're here in this world to enjoy life whatever setting you are in. Sabi nga ni Powell Davies ('di ko actually siya  kilala haha), "life is a chance to grow a soul."

BONUS. To sum it all up, magpapapatawa po ako, JAPAN:

J - just live, laugh, love, learn, take risks, prioritize, accomplish, listen, empathize, ask, give, forgive, thank, remember, fail, rise up, and then fail again, and then rise up stronger,

A - and lastly,

P - pray

A - at

N - night hehe

Source: INC

P,S. I was just kidding about Powell Davies po hehe. Hope you enjoyed reading this post po!

STOCKS 101 | 5 Free Online Stock Trading Simulation Games

If you're a newbie in stock investing and wouldn't want to shell out money first because you think you lack the knowledge, then you can try simulators of stocks trading or simulation games which can serve beneficial and pose no risk when it comes to money (since virtual money is only involved) but there's a risk of information sharing (because most of these can be accessed using Facebook) though so be warned hehe.

Here is a list of stock trading games which you may find helpful in have a good hold of the trading experience. Maybe you're still a bit scared of venturing into equities, which is really risky 'cause you can lose money in just a few weeks. But hey, these guys are here to at least let us realize what we still don't know about the world of stocks.

Hope you love this list I compiled (these are not ranked po hehe)!

1. Investopedia

Just visit this link. The good thing with this stock trading simulation game is that you can easily access it through Facebook. There's no need to sign up as long as your logged in Facebook.

As soon as you have access to the Investopedia Simulator, you are free to choose from a variety of games made both by the public and by Investopedia itself. When you begin the Beginners game (as seen in the image above), you'll have a starting value of $10,000. Try playing this game if you like. :)

2. Smart Stocks

Access to the Smart Stocks trading simulator is easy because you can log in through your Facebook account. Its setup is also manageable and convenient for anyone's understanding. 

Upon logging in, you'd be given the chance to create your own Fund Portfolio with an available cash of a whooping $1,000,000.00. One more thing one can do here is  to create as many portfolio as he/she wants. What I don't like about Smart Stocks though is the presence of ads hehe.

3. MarketWatch

MarketWatch's stock trading game is actually the first stock trading simulation platform I really used three to four years ago. It reflects live price fluctuations and real-time trading, plus it ranks the players based on net worth where you start first with $100,000.

There are a lot of trading games in this site, an example of which is shown above; note however that the game Philippine stocks exchange is already expired. 

Here's what to expect from MarketWatch's Game Board. Play the simulator here.

4. Wall Street Survivor

Wall Street Survivor has come up with a more creative, fun way to learn investing. Try it out through its website.

When you landed right on its page, you'll have to register through Facebook or email address. It would only take a few seconds to register.

I would have to believe that Wall Street Investor has one of the best interface I've seen when it comes to trading. Plus, there are a lot of cool stuff to check out like videos and some stock tips.

5. TradeHero

Actually an app rated 4/5 in Google Playstore, TradeHero is "mobile stock market simulation app that lets you learn about trading without any risk." One can also play this game just by logging in Facebook or Twitter,  aside from the traditional email address registration. The initial investment is $100,000. More than just learning how to trade, you actually get to earn money if people follow your trades.

Once registered, you'll be asked which exchange you'd like to trade in - in our case, the ticker is PSE.

You will then be requested to choose only one sector. It will then lead you to your profile page where your stock portfolio is featured. 

P.S. Note that these stock trading simulation games provide almost real-time info about the stocks you hold, so it's far from possible that you'll get to play the games on a weekend. Also, please take note that there are a lot of other trading simulators and apps out there. All you need to do is just search. :)

P.P.S. I didn't include the Philippine Stock Exchange's Philippine Stock Trading Game (STG) because as I checked it today, August 23, it's down.

STOCKS 101 | 8 of the Best Investment Advice I Read Online

There are hundreds of millions of investors in the  world, each one having encountered losses and wins during the course of their investing/trading life. There are those who have escaped the financial trap faster than most of us. There are those who stayed stuck.

Despite whatever status they may or may not have reached, there's one common denominator -- experience. What great insights can we learn from them?

In this post, I present to you 8 of the best investment advice I have read online which I sometimes tend to overlook haha. I still make bad choices hehe; Young but still naive,  I'm pretty much using up all the spare time I could spend to get to know the world of investing better.

I'm cutting this short and concise so that you'll just take three minutes to absorb all these nuggets of wisdom that you're about to discover. Enjoy!

Richard Russell (Image Source: Business Insider)

1. “The wealthy investor tends to be an expert on values. When bonds are cheap and bond yields are irresistibly high, he buys bonds. When stocks are on the bargain table and stock yields are attractive, he buys stocks. When real estate is a great value, he buys real estate. When great art or fine jewelry or gold is on the “giveaway’ table, he buys art or diamonds or gold. In other words, the wealthy investor puts his money where the great values are. And if no outstanding values are available, the wealthy investors waits.” Richard Russell, author of The Dow Theory Letter.

2. “The whole secret to winning and losing in the stock market is to lose the least amount possible when you’re not right.” William J. O’Neil, founder of Investor’s Business Daily.

3. “Most big fortunes result from investing in a growing business and staying with it through thick and thin.” Thomas Rowe Price, Jr., founder of  T. Rowe Price & Associates.

4. “If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume” Benjamin Graham, legendary value investor.

5. "Only invest in what you understand and at the right place." Warren Buffett, "Oracle of Omaha", Berkshire Hathaway

Warren Buffett (Image Source: NBC Bay Area)

6. “An investment in knowledge pays the most interest.” Benjamin Franklin.

7. “Invest in yourself and the people you believe in.” Patrick Soon-Shiong, pharmaceutical entrepreneur.

8. “Invest in as much of yourself as you can, you are your own biggest asset by far.” Warren Buffett, "Oracle of Omaha", Berkshire Hathaway

STOCKS 101 | P/E Ratios by Industry (from PSE Data) - Middle of August 20

I used the Wall Street Journal online's data thinking that it's more updated than that seen on COL Financial, but I missed checking out on the more direct source of data for P/E ratios - the Philippine Stock Exchange, Inc.

That's why I've created another set of tables of P/E ratios by industry collated and provided by the online PSE portal, as of August 14, 2015, midway to AuGHOST month's end wherein investors may just continue their panic buying and selling.

Most P/E ratios are somewhat similar or near the values produced by The Wall Street Journal. I decided to give data from the PSE itself to achieve balance in reporting P/E ratios. Hope that from what you may have learned in my previous post, you now know a bit how to judge stocks based on P/E ratios.

1. Bank and Financials

Comparing the P/Es of companies in the financial sector, it can be deduced that UBP is cheaper compared to its peers. However, one has to note whether there's a current problem with UBP (probably in its books or loans) or whether investors aren't just as attracted to it as they are attracted to the banking giants BDO and BPI. Or whether UBP already released its earnings report and the higher earnings reported pushed down its P/E. Or other cases. So conduct due diligence; this advise also goes to decisions involving other stocks mentioned in this post.

 2. Commercial and Industrial

Election's fast approaching. Could it be the reason why ABS and GMA7 have relatively high P/E ratios? Or could it be because their earnings didn't meet expectations (if and when they already released their report)?

IMI, based on P/E, is pretty undervalued given the fact that it's operations are international; however, could this also be the reason why this stock is not priced the way it should be? Because the peso is weakening against the dollar?

PCOR, the smallest in the list of 30 blue chip companies, is on a negative P/E value. Recall that oil's price has been hardly managing to go up due to the unexpected surge in supplies internationally. EEI, on another note, is somewhat attractive, but what makes it not so catchy at all?

Again, research, research, research.

 3. Conglomerates

We see here FPH (First Philippine Holdings) which has stakes in power-generating companies EDC (Energy Dev't Corp) and FGEN (First Gen Corp) as an undervalued stock. Are there problems (impending loan payments? etc?) in it or is it just not spotted?

LTG (Lucio Tan Group) has a very high P/E ratio. I don't get it why, but pretty sure one has to view this stock's trajectory. Has its earnings been affected by the Sin Tax Bill? Is it on a rebound?

4. Consumer

One of the most priced sectors is the Consumer sector, wherein average P/E hovers near 25. Most Filipinos love anything locally produced, from JFC's chickenjoy to URC's junk foods, RFM's Selecta milk and EMP's brandy. And who wouldn't love to buy in air-conditioned markets like that of PGOLD and RRHI? As long as there is someone living, these companies will continue earning. But the sector's high value?

 5. Gaming

The gaming industry has lower average P/E compared to the other sectors possibly because of lower earnings reported (MCP took a loss) which lost investors' appetite and a government crackdown on corruption in China scaring gamers in Macau. What other factors may be attributed to this lower P/E despite casino operators getting huge revenues?

6. Mining, Power, Telecom

Businesses focusing on basic needs like texting, electricity, and internet may strive despite stiffer competition. GLO's Globe is overpriced probably because investors were upbeat when the company released it has been gobbling market share and continuously earning higher profit versus its rival PLDT in this telecom duopoly.

7. Property

The property sector has a mix of undervalued and overvalued stocks. There are certain factors that influence these ratios - investor confidence, earnings report, financial stability, market share, occupancy rate, margins, scandals, etc.

Notable companies with high investor confidence are market leaders ALI and SMPH.

STOCKS 101 | Mid-august Investment Guide featuring Current P/E Ratios by Industry

The Philippine stock market plunged -0.42% to 7,408.44 on the last day of week two of August - which some investors call AuGHOST month due to anticipated market selloff caused by investors who believe it's a bad month for equities. It's not only felt here in the Philippines, but also outside. In fact, USA Today has reported "why investors in the US expect 'August Angst' to come."

Local stocks reporters refer to the "ghost month" as a "period in the Lunar calendar when Chinese investors avoid making big-ticket investments or other big moves like getting married or moving to a new house". (Inquirer) Hence, it could mean that next week will be the actual beginning of this dreaded event. Still, the overlap of these periods might just mean one thing, stocks will possibly go down.

When most stocks turn red, it may mean stocks are being sold at discounted prices; however, it may also mean stocks are just adjusting from its overvalued prices. At such discounts, value investors hunt for good stocks to buy based on some metrics like price/earnings ratio (P/E), price-to-book ratio (P/B), debt-equity ratio, price/earnings to growth ratio (PEG), earnings per share ratio (EPS), and free cash flow.

I talked about value investors. Who are they?

Investopedia defines it as:

Value investors actively seek stocks of companies that they believe the market has undervalued. They believe the market overreacts to good and bad news, resulting in stock price movements that do not correspond with the company's long-term fundamentals. The result is an opportunity for value investors to profit by buying when the price is deflated. 

Typically, value investors select stocks with lower-than-average price-to-book or price-to-earnings ratios and/or high dividend yields.

We are now wading through the middle of AuGHOST month. And depending on each own's appetite, we could either be buying discounted valuable stocks or selling under-performing stocks. 

Hence, to help you partly decide which stocks to look out for, I took the initiative to collect the current P/E ratios of all companies monitored by the COL Financial through its investment guide. I obtained all P/E data, as updated last August 14 (today), from The Wall Street Journal online.

(If you wish to skip this short refresher, please jump to the bottom of this page.)

But why P/E? What's with it?

The P/E ratio is a measure of how attractive a potential stock (company) is relative to its competitors. It divides the stock's share price by its earnings  (kita) per share which tell us how much investors are willing to shell out for a peso (1 Php) of earnings.

So, kung mataas ang P/E ratio, it may mean na:

• With respect to the SHARE PRICE, in demand ang stock na ito for expected positive (good) results (usually higher profits and margins, lower expenditures, increased market share, removal of poorly performing CEO, acquisitions, etc), or
• Hyped lang ang stock (probably because of maling akala or too much trust in the company) which means it was overvalued, which could lead to the consequence in the next bullet,
• With respect to EARNINGS, mababa ang earnings kaya mataas ang P/E ratio or di mameet ng company ang earnings target, kaya ang result, some investors when they see na nag-exceed na sa ceiling P/E nila yung stock nila, they resort to selling.

Kung mababa naman ang P/E ratio, pwedeng:

• With respect to the SHARE PRICE, di siya pinapansin ng mga investors kasi baka lubog sa utang or baka may mga bad news siya before (scandals, accidents, etc.) na hindi pa makalimutan ng mga investors 
• With respect to the EARNINGS, surprising ang earnings ng company na na-exceed niya yung pace ng share price, which may possibly mean good to buy ang stock na ito. Example, stock A is trading with a P/E of 20 pero kanina lang nag-announce siya na nasurpass ng company yung earnings target, so automatically updated P/E for it would adjust to a lower than 20 kasi the denominator part of 20/1 (which is 1, may have increased to 1.2 or 1.4 or kahit ilan basta mataas). In this case, investors who spot stocks with low current P/E ratios and saw earnings to increase would usually buy these stocks.

Which leads me to these Tables of Updated P/E ratios of PSE companies by industry. Because we're in the middle of the selloff month, these tables may serve as guide in purchasing or selling stocks on the basis of the P/E ratio. 

Note, however, that due diligence must be practiced at all times when doing so...

....because a company's financials are not only measured by the P/E ratio. The P/E ratio has limitations and does not provide a complete insight for one to arrive at a decision. 

First, we can only compare P/E ratios of companies belonging in the same industry. Why? Because a mining company relying on mineral exports has a different way of earning versus a telecom company relying on broadband and landline subscriptions. We can't just assume their P/Es are comparable. 

Another important limitation is that the P/E ratio heavily depends on data provided by the companies themselves which may be prone to manipulation. The share price is highly dictated by the market; but, a company may choose not to disclose its poor earnings in an AuGHOST month for fear of investor panic or may do so para bara-bara na bagsak. There are many scenarios associated with P/E ratios, hence it's powerful, but just like any data, if COL Financial or any stock broker fails to update earnings info released by companies, the P/E ratios provided may seem unconvincing (kaya I made it a point to put in updated data as of August 14, 'cause I know some investors use P/E ratios as bases and it's a MEGA SALEEEEEE! Hehe!). This, however, urged me to make another post showing P/E ratios by industry but as provided by our very own Philippine Stock Exchange, Inc. to give you a balanced approach - one from foreign analyses, another from our very own exchange. You might notice that there may be some differences in the P/E ratios, which explains P/E ratio's limitations.

Lastly, P/E ratio is limited in that the companies with higher debt may be unattractive to investors, thus sometimes getting lower P/E. However, when the business is humahataw, the company with higher debt (lower P/E) may actually have won the industry over with more earnings as it took higher risks (probably due to speedy expansion and good fiscal management) which gave it higher returns. So, it's best to conduct wise judgment by studying the other basic metrics in investing. 

Now that you've learned a bit about one financial ratio which may serve important in arriving at a good investment decision, do take a look at the current mid-August P/E ratios per industry. I didn't add all companies listed in the PSE as I only chose what were highlighted by COL Financial in its own Investment Guide. Caveat!

1. BANKS AND FINANCIAL

Side Note:
(from Sir Mark Mataranas, Investment in the Philippines Market - Tips and Tricks)

For BANKS: 

Banks' balance sheets consist mostly of financial assets with varying degrees of liquidity, reason book value is a good proxy for the value of a banking stock. Assuming the assets and liabilities closely approximate their reported value, the base value for a bank should be book value. For any premium above that, investors are paying for future growth and excess earnings. Seldom do banks trade for less than book, but if they do, the bank’s assets could be distressed. Typically, big banks have traded in the two or three times book range over recently.. 

That's why comparing similar banks on a price-to-book (P/B) measure can be a good way to make sure you’re not overpaying for a bank stock. 

Of course there are other important factors/valuation to consider for banks like...

- ROE/ROA (kind of de facto standards for gauging bank profitability)

- net interest margin (looks at net interest income as a percentage of average earning assets. Virtually all banks report net interest margins because it measures lending profitability. You’ll see a wide variety of net interest margins depending on the type of lending a bank engages in, but most banks’ margins fall into the 3 percent to 4 percent range..

- Efficiency ratio (measures non-interest expense, or operating costs as a percentage of net revenues. Basically, it tells you how efficiently the bank is managed.)

- strong equity base (simplest metric to check is equity-to-asset ratio) and the ability to grow revenues at a steady pace.

- there are some more kaya P/E alone is less significant for banks. 

For banks, doing relative valuation with P/BV is a reasonable approximation of the value of the business compared to other industry..it's a good starting point for seeking out quality bank stocks. A solid bank trading at less than 2x BV is often worth a closer look..but there are banks that can trade above 2 or 3 like the big 3s (BPI/MBT/BDO usually commands above 2x BV..lower than that may mean a potential big bargain). This ratio is also a good approximation that you are not overpaying for a bank stocks.

Check for consistent solid ROE..also, not to low ROE (or too high ROE) from avg is good starting point. Above avg is good. 

There are other relevant data to check for detailed analysis but ROE & P/BV are a good starting point.

2. COMMERCIAL AND INDUSTRIAL

3. CONGLOMERATES

4. CONSUMER

5. GAMING

6. MINING, POWER, TELECOMS

7. PROPERTY

Disclaimer: 

I don't declare myself a stock market analyst nor do I believe that I am a mentor when it comes to stock investing. I am just a learning student trying to help in the best way I can, so that anyone can understand why some stocks perform greatly while others lag behind. I really wish you learned something from this post po. If you enjoyed this post, I would really appreciate it po if you like my humble blog hehe.

STUDENT FINANCE | How saving helped me chase one of my dreams

Probably one of my little accomplishments in life, which took so many years before it paid off, is having to pursue one of the dream hobbies I really, really wanted to do.

I think it was in Grade 4 - I was 11 years old - when I first realized how it feels to be punched in the stomach by extreme poverty. At that time, Mama only gave me 10 Php for the day. I was too shy (and very embarrassed) that I cannot join my peers in buying lunch at the cafeteria. I can recall our lunch meal was around 25 Php for a fried chicken meal. Worst, I had to eat only when I was about to go home as my kind bus-mates had excess snacks to share.

It was at that moment when it dawned on me to make every peso provided to me count and to assist my parents in our family's expenses. I aimed to be admitted into the best schools my intellect, strong will and determination can bring me. I learned to practice saving, hiding money behind picture frames, within the pages of the Bible, inside my drawers, and even underground (which at one point got me surprised and confused because when I dug it a few months later, I realized it was gone haha).

First Love

By the time I reached the ending year of high school, I realized I wanted to capture memories, to shoot for beautiful scenery, and relive moments at just one click. I wanted to become a photographer.

Unfortunately, SLRs at that time were very expensive. I looked up to people who had beautiful digital cameras and SLRs as if it was decoded in mind that they belonged to the upper echelons of society. Most of them looked fulfilled; others had it just for show. For me, photography was something internal; I didn't truly comprehend why it became an urge, but it was there. It was not a luxurious want, but a defying need.

"I will have that in time," I comforted myself during my high school graduation. It was a dare to myself.

College life began; it was my first time to be far away from home. I had to survive, on my own. Living in NCR was very hard for someone who was just weaned off his family's love and affection. I cried every night for the first two weeks of college out of homesickness.

Soon, I became more challenged. The funny thing is eventually you'd get the hang of it and just get tired of crying, projecting your need for love towards your new found friends.

Months passed by, I got to see more people having SLRs and better phones. To be honest, I envied them. It was my calling to join the world of photography. 

Every time my allowance (which was really just enough for my food and shelter) is sent, I only withdrew what I needed for the week which meant employing extra tight budgeting. There were cases I missed lunch or just ate crackers to fill my tummy, but that was because my class schedule was a bit full and intoxicating. You know, in our university there was a shortage of professors so there's very high demand for subjects, the last solution of which would be opening new slots that sacrificed lunch breaks. Eventually, I was able to adjust.

I was determined to keep money - first, out of the fear that Metro Manila life is scary when one doesn't have money, and second, out of the tethered longing to pursue photography. While most of my peers were busy eating at fast food chains and posh restaurants, I was satiated by food offered by carinderias (their homemade food were really yummy!). Occasionally, I'd join my friends to eat out as a reward (usually after exams).

To cut the story short, I graduated in college with a sigh of disappointment because I wasn't able to buy myself an SLR. At that time, my priorities changed. I let go for a while, with the thought that I might need the money in case of emergency. And so, my savings (just a few thousands) were left untouched in the bank.

But the longing didn't stop. It was my first love, some passion my heart was really yearning for. It was for me.

(RIGHT) Three years later, just this year, I accidentally found a post about a DSLR being sold in an online store at a bargain price. It was secondhand but had no defects and just a little less than 2k shutter count. I felt it was the right moment for me; I needed to give myself something I worked hard for and something that would motivate me more to succeed.

I bought it. I felt so elated, with that ounce of pride having been able to buy a DSLR out of more than six years of dedicated saving! Wohoo! I felt I responsibly decided for myself. It was something I wished to have since my teen days. I never regretted all the years of waiting; seemed like God told me, "take it, My child, it's for you."

No to worship of money, yes to frugality at best

Indeed, I got to buy a DSLR, but still retained a chunk of my savings. My hands were really excited to maneuver the buttons that glossed out of it.

One thing that didn't stick with me, all throughout the wait, was worship of money. I know money is somewhat important but it's not the most essential thing in the world. Bear in mind, though, that it could be some means to achieving happiness - for my case, I am happy I got to practice photography even if I had to wait for years. I was content I got to bond with friends even in just the most sketchy places (pero yun pala, the best eateries I dined into).

The thriftiness I acquired stayed. As you can see below, saving is petty much instilled in me. This is just to add pun to my post haha. It's funny because my coins don't even have their proper shelters (alkansya haha). 

Yep, I just laid them on the floor. I sometimes use some of my (non-bank) coin savings (from last year), which I taped by denomination, to buy load haha. The salesladies won't mind if I pay them piles of coins late at night hehe.

(LEFT) Another area where I place my current savings. I use these for my day-to-day living. I eat 50-peso meals, and just drink the cold water that the carinderia offers. Sometimes, though, I eat inside malls but only in the food court (where it's cheaper) haha. My phone is an obsolete, annoyingly malfunctioning Nokia which just got replaced when my friend lent me his secondary phone a few days ago.

Always take aim

What's more valuable to me is the realization that I can live life with that street-smart attitude and frugality I acquired throughout the years of independence and struggle in Metro Manila. One more important thing I set my mind into is to make sure that I don't step on anyone's shoes. Money can't buy class; I'm not yet rich, but I sure know how to empathize with people from any socioeconomic class.

Whenever I take photos of people in the streets, I  always ask permission from them and thank them for giving me the opportunity to render service to them.

(RIGHT) I also apply semantics - meanings hidden within frames. Whenever I take shots, I make it a point to convey something. To me, the mind can interpret a photo differently - to each his own.

I took a photo of a bull when I went to Rizal Park because it reminded me of the PH stock market. In addition to that, I feel bullish (hehe) I could learn so much more from established mentors in different finance-related groups of which I am a part.

I have survived the toughest financial difficulties in life and I know there are a lot more coming, but my outlook and character will always take me somewhere, evident of which is the achievement of this dream I long thought was impossible to have. Life will always give you surprises; sometimes they're pretty cool surprises, other times they're extremely mind-boggling and stressful. So, it's important to seek guidance from elders, friends, and even (in extra-rare conditions) enemies.

No man is an island; you can't live life on your own. A bull needs a matador in order to play its game. A matador sees a bull as integral to his life. 

There will be triumphs and defeats. It's up to your perspective, how you see things. Turn misfortune inside out; convert weakness as your strength. My longing for familial love became my strength to keep up with college life's pace. Financial debacles didn't hinder me from obtaining a DSLR; instead, it pushed me to strive harder.

I always believed in myself. I know I can surpass whatever stones life hurls toward me 'cause there are people out there who I can ask for support. And there's Someone who'd always catch me whenever I fall down. 

Just keep pushing forward; there will always be a way to solve a difficult problem. Anyone can be whoever you want as peg in life, or you can tread a different path and live uniquely. It's a matter of setting your eyes on the prize - on your goals, aspirations.

As Norman Vincent Peale once said, "Shoot for the moon. Even if you miss, you'll land among the stars." 

MONEY MATTERS: 5 Awesome Tips to Help your Parents in your Finances

Desperate times call for desperate measures. There will come a point in time where, in the middle of your juggling-of-academic-and-social-life stunt, you'll tell yourself "that's enough, I have to do something para mabawasan paghihirap magsumikap ng mga magulang ko for my education."

This came to my mind when one of my parents became unemployed which resulted in our family income plunging 55% - yes and I'm not overestimating here. It was sudden, and it was hard to adjust. I became depressed, at some point, because it was so tough I thought I might not be enrolling in the next semesters. But good thing, I did some actions in advance which helped kept us afloat, even now.

Now, would you have to wait for such tragic thing (as mine) to happen to yours? You wouldn't right?

How can a student, a teenager, or a young adult become less financially dependent of their parents? You may ask, how can I assist my parents in the middle of tuition fee increases, food price hikes, rental rate increments? What students don't know is that they can do A LOT to make life easier both for them and their parents.

Here are five (5) awesome ways I did in order to help my parents lessen the burden, while we were going through the financial black hole that was sucking us out into oblivion. And I'm definitely emphasizing saving here, hehe. 

1. Apply for scholarships. Study hard and smart.

Fact one. College-related and after-college expenses increase every year! Actually, the price for expenses will usually go up as we age! Don't forget that almost everything that has a price tag in it is becoming more expensive! Blame it on inflation. Books become more mahal. Internet shops make you their cash cow. Professors give you projects for additional credits. The list goes on.

One thing you can actually do, especially if you're such a smart *ss (or just an *ss), is to really focus and study hard! It's true there are just brighter students out there who come out of the top of the class, because their well-off parents nurtured them well. Now, here's the gist. If you think you're not that type of genius I've mentioned in the sentence prior this, it's not your fault, but it's your fault if you won't do something about it!

This will always be fact number two! Hardworking, diligent students most oftentimes level with, and in some cases outshine, bright students. I have known people who are definitely smart, but fail classes because they don't attend or fail to submit on time, or don't submit at all. Studying hard and smart is the key to getting a scholarship! 

You want a scholarship? Work hard to get it! :)

2. Save chunks of your allowances.

Admit it ('cause I do). It's hard to save, especially at this moment that iPhones and other smartphones plus other gadgets, add to that the hobbies that we happily immerse ourselves into (studying at tea shops, partying), lure us into spending more. But you have to realize, that even just by saving 50 Php everyday, you can already have money to pay for your books next month.

Here's an additional tip. We talk about chunks. Yes, you will save up, but please don't save up and then end up compromising your health because you're not eating well. You've got to be kidding me! Hilarious!

3. Get a part-time job! And save.

There are a lot of part-time jobs out there. You can become a baby-sitter, a tutor, a call center agent, or perhaps, a bartender at Starbucks! You just need to have the guts and the motivation. If you really want to help your parents, you know doing this is the right thing. And there's nothing wrong with it.

And remember, save up a lot - not too much that you won't have anything left for you to relax and enjoy. The earlier that you save, the earlier you're training yourself to spend less and be thrifty, the bigger the amount that you can chip in to take the burden of college education your parents are currently bearing.

4. Blog and earn! And save!

I started blogging when I was in my late years (nineteen, I think)). And I found out about Google ads during that same period. I have to be honest, it's hard to earn via blogging especially when you aren't that good of a writer whose articles can be easily searched on the web or whose topics are in demand - you know, professional bloggers call this SEO optimization. Mine isn't that optimized, but still I earned, in some way.

And tada! I just got my first paycheck from Google after years. :)) It's slow, but it's better to have earned (and waited for it) than never right? You have to make really good articles (via Blogger), and you have to build around you an audience that could stick with you all through out the year. It's tougher for me, 'cause I blog anonymously. I didn't want to subject my identity to the public, not because what I do is illegal (which isn't), but because I want people to know about my blog/s and not about the author behind the blog. I don't want to be known, but rather, I want my blog be known and share and influence change.

And, don't forget to save! Saving is compulsory if you really want to pay at least part of your tuition (or your daily expenses) or support yourself during the tough times.

5. Invest what you have saved!

Investing can come in a variety of ways. You can invest in a startup (or build one with your trustworthy friends!). You can invest in public companies via COL Financial. If you want to know how to invest in PH companies like Jollibee (JFC) and SM Malls (SM), visit this post. Also, here are reasons why I joined the stock market.

But where should you invest the most? What't the biggest investment? YOU. Invest big-time in yourself! Grow and learn in the best way you can! The world is just so awesome to live in, and it becomes more awesome with people who give out their best shot and invest in themselves!

See. You know, you don't have to wear the hippest brands just to be in. Or be loud about what you do - e.g. posting food trips all the time, going to the malls to buy new clothing for next month. Saving has always been, and always will be, one of the best cool things to do that teenagers and young adults sometimes fail to realize!

P.S. I made this short, given the fact that it will bore you if I post lengthy stuff. Hope this post helped some of you!

p.P.S. If you're interested in reading more life-based money stories, here are some of them:
Two financial lessons I learned from Mama and Papa when I was a kid

5 steps that may help students (actually anyone) become rich (Part 1)

5 steps that may help students (actually anyone) become rich (Part 2)

PINOY PRIDE: Aurelio, the first Filipino supercar

Several days ago, I featured in Spotlight Philippines the Salamander amphibious tricycle. It was still a prototype but definitely working. Now, who would have thought that Filipinos are capable of making cars?

Yes, I'm talking about cars, and it's not just cars, but supercars! SUPERCARS! Watch out for the launching of the Aurelio, the first Filipino supercar made by a Philippine company Aurelio Concepts Inc.

Video Courtesy: Youtube channel The ELITE Group

Who are Aurelio Concepts Inc? When did it began?

It all started with one man's passion, fueled by love for design and Filipino ingenuity.

Brendan Aurelio, an architect by profession, started building and creating his very first prototype car from scratch as a backyard hobby in 2004. His passion, though constrained by a limited budget, expressed its depth and dimension in a prototype creation that is seen as an original car that is uniquely Filipino, yet powerful and spirited to compete with global brands. His passion saw no contentment, as he devoted his life into perfecting this prototype. Through the years, car enthusiasts did not only notice the design distinction of the prototype, but more importantly, they believed in his devotion and vision of perfecting, fine-tuning, and innovating his craft.

From its humble beginning in 2004, through to 10 years of research and development, design innovation, numerous testings, and in-depth quality assurance, the creator now gives birth to a new prototype – The Aurelio.

Showcasing the prototype during numerous trade shows eventually paved way for a rise in public demand. Banking on skills, craftsmanship, and the art and science of aerodynamics, what was then a backyard hobby back in 2004, now grew into something stronger and faster. The Aurelio is passion and luxury combined, bringing value for money invested by any car owner. The Aurelio is not a replica of an existing car, but speaks of the buyer’s individuality and zest for design and speed.

Today, Brendan Aurelio is joined by Sonny Garcia and Peter Sy. Brendan's passion & precise craftsmanship, alongside Sonny's marketing expertise and Peter's business acumen and vision, paved way for Team Aurelio to become stronger than ever. Team Aurelio, the people behind the prototype, is here for you, raring to share The Aurelio. It isn’t just the potential and the demand that motivates Team Aurelio to embark on this business venture, but the thrill of bringing forth The Aurelio to the global market, because The Aurelio truly roars with the Filipino spirit, excellence and ingenuity.

Steer with us on our journey with The Aurelio, a car for the design enthusiast, the speed and safety conscious, the thrill seeker or simply for anyone whose passion and zest for the best is expressed by The Aurelio.

Drive The Aurelio – a product fueled by passion, crafted with Filipino ingenuity, yet bound by detailed engineering.

Stay confident that behind you is the Team Aurelio, always passionate and excelling in the way we do things, especially in serving your needs.

We run on the Filipino Dream. We go full speed ahead with Filipino Pride.

We will continue to run on Innovation. We are AURELIO.

Stock Market: How to Invest in the Philippines via COL Financial

Do you have a huge amount of savings which you would like to invest in publicly listed Philippine companies? Do you have extra cash and you don't know where to keep it?

Become an investor in the PH stock market. Join Citisec Online Financial (COL Financial). The following infographic lists the steps needed in order for you to invest in the Philippine stock market via COL Financial.

For more information, you may see what I did when it was my first time to open a COL account. Visit how to open an individual investment account with COL Financial to learn more.