col easy investment program -...
TRANSCRIPT
COL Easy Investment ProgramLearn to build wealth the easy way in the Stock Market
CitisecOnline.com… who we are CitisecOnline is the leading and fastest-
growing online stockbrokerage firm in the Philippine Stock Exchange handling about 20% of its number of trades.
CitisecOnline is the largest capitalized stockbroker with over half a Billion Pesos in resources, COL is publicly listed in Philippine Stock Exchange & is also member of the Hong Kong Exchange
CitisecOnline is committed to empowering the Filipino investor to achieve financial independence by providing access, information and education
Retirement
Children/ Education
Cost of Living/ Housing
WHY invest?
Investing is the most effective way to build your personal wealth and
reach your financial goals!
WHY invest?Inflation measures the rise in the cost of goods; it is the rate of which the purchasing power of money falls by if
not investedYear
Purchasing power of Php100 stashed away in 1970* (not invested)
1970 100
1980 59.87
1990 35.85
2000 21.46
2009 12.85
I
N
F
L
A
T
I
O
N* Assuming a 5% annual Inflation
Safeguard capital against INFLATION!
Invest with Long Term Compounding
Compounding is the
act of reinvesting your
profit to further
increase your profits
over time. Companies
can compound their
growth by reinvesting
their profits into the
business.
Why invest in the stock market?
• The Stock Market is the place where you can invest in ‘publicly owned’ or PSE listed companies.
• You invest into a company to participate in its ability to grow and earn profits
• You make money through:
• Price Appreciation
• Earning Dividends
Stock Market Superior Track Record
History has proven that investing in quality stocks
can provide greater returns than most
instruments; giving a good run over inflation…
HOW MUCH can I invest?*
*These are only suggested percentages based on investors’ capacity to take on risk; as a rule of thumb,
younger investors can take more risk given that they may have a longer period to withstand volatility
Agg
ress
ive
Method 2:Compute 100-Age = Max % of Savings that can be invested
Ex. If I am 35 years old then I can invest up to 65% of my savings into the Stock Market
Co
nse
rvat
ive Method 1:
Up to 20% of Savings may be invested into the Stock Market
Stock Market Investing Simplified: PESO COST AVERAGING!
6
5
4
3
Peso Cost Averaging is a personal wealth-building strategy that involves investing a fixed amount of
money at regular intervals over a long period
Month 3
Buy Php5,000 worth of stock ABC at market price
Month 2
Buy Php5,000 worth of stock ABC at market price
Month 1
Buy Php5,000 worth of stock ABC at market price
Designed to reduce market risk by stretching out the purchase of stocks over time, buying more when prices
are low and buying less when it is high, effectively keeping your average cost low
Peso Cost Averaging
1 2 3 4 5 6 7 8 9
Month
Ave Cost
Sample Cost Averaging ActivityDate of Stock
PurchaseAmount of Stock Purchase (Php)
Price per Share # of Shares* Ave Cost per share
1-Jun-08 5,000 10 500 10.00
1-Jul-08 5,000 11.75 426 10.80
1-Aug-08 5,000 11.5 435 11.03
1-Sep-08 5,000 11 455 11.02
1-Oct-08 5,000 10 500 10.80
1-Nov-08 5,000 9 556 10.45
1-Dec-08 5,000 7.5 667 9.90
1-Jan-09 5,000 8 625 9.61
1-Feb-09 5,000 9 556 9.54
1-Mar-09 5,000 9.1 549 9.49
1-Apr-09 5,000 9.5 526 9.49
1-May-09 5,000 10 500 9.53
*You buy less shares when prices are high and more shares when it is low (subject to board lot regulations)
Your average cost remains low
Peso Cost Averaging
Peso Cost AveragingLest assume you invest Php5,000 a month over a year in two market scenarios
Total Investment = P60,000Market Value = P80,650 (+34%)Cost Per Share = P20.83
Total Investment = P60,000Market Value = P75,281 (+25%)Cost Per Share = P12.75
2-yr Cost Averaging plan to BUY Php15,000 of Ayala Land every quarter
Peso Cost Averaging Sample
10.001,000 SHARES
6.602,000 SHARES
Total Shares: 3,000
Ave. Cost: 7.73
6.502,000 SHARES
Total Shares: 5,000
Ave. Cost: 7.24
10.251,400 SHARES
Total Shares: 9,400
Ave. Cost: 7.74
10.501,400 SHARES
Total Shares: 10,800
Ave. Cost: 8.10
6.402,000 SHARES
Total Shares: 7,000
Ave. Cost: 7.00
9.401,000 SHARES
Total Shares: 8,000
Ave. Cost: 7.30
2 Year Result: TOTAL INVESTMENT: Php 87,450
TOTAL PORTFOLIO VALUE: Php 148,500 (+70%)
PSE BOARD LOT TABLE
PRICE RANGE BOARD LOT
0.001 to 0.005 1,000,000
0.0055 to 0.01 1,000,000
0.011 to 0.05 100,000
0.0525 to 0.10 100,000
0.105 to 0.25 10,000
0.26 to 1.00 10,000
1.02 to 2.50 1,000
2.55 to 5.00 1,000
5.10 to 10.00 1,000
10.25 to 25.00 100
25.50 to 100.00 100
101.00 to 250.00 10
252.50 to 500.00 10
505.00 and upward 10
PSE BOARD LOT SYSTEM- Minimum amount of shares that can be bought determined by a stock’s market price- To buy more, you can only buy along the board lot increments (i.e. a board lot of 1,000 would allow you to by 1000, 2000, 3000 etc, but not 1500 shares – as the 500 is called an ‘odd lot’)
Buying on PSE Minimum Lots
Ayala Land’s 2-yr Price Range Php5.00 – P14.00
Board Lot Size:1.02-10.00 = 1,000 shares
10.25-100.00 = 100 shares
A viable long term planCost Averaging
Stock/ Indicator
Effective Annual Yield
Time Frame
TEL 18.88% 18 yrs
BPI 16.92% 18 yrs
AC 11.16% 18 yrs
JFC 10.7% 14 yrs
Inflation 5.7% 18 yrs
Retire with an Extra 10 Million!
Invest Monthly Php5,000
# Years 21
Return Rate 16.9%
Total Investment (P) 1,260,000
Will result in a…
Future Value (P) Php10M+
Investment Gain 740%
Share price history from 1990 to 2007
The COL Easy Investment Program
Introducing COL’s EIPThe COL Easy Investment Program is the latest service from
CitisecOnline which makes it easier for our customers to apply the method of peso-cost-averaging.
Features•Premium Stock List – have access to our research and
premium growth stock recommendations
•EIP Portfolio – have access to your EIP positions
anytime and track their performance
•Schedule Calendar – plan out your purchases over
time by building a continuing calendar of orders that
will prompt you through Email reminders
Allow us to Recommend some Stocks
We filter looking for good stocks by looking for ‘GEMSS’
Growing industryEarnings visibility/predictabilityManagement credibilitySuperior products or servicesStrong balance sheet
Our Premium Growth Stocks:
Ayala Land Inc (ALI)
Bank of Phil Islands (BPI)
Jollibee (JFC)
PLDT (TEL)
SM Prime Holdings (SMPH)
Manila Water (MWC)
COL EIP: Investing made easyB
en
efit
s
No need to "time" the market
Helps you save with only a minimal amount
You can manage your risk over time (as against lump sum investing)
You ‘partner’ with dynamic corporations that compound their expansion over time
Your investments are kept liquid and can be turned back into cash quickly if you need it
Getting Started with the EIPEI
P M
en
u
Log in to our website at www.citiseconline.com and access the EIP functions under the
Trade/Portfolio Tab
EIP Sub Menu Click to activate
the EIP Sub Menu
Getting Started with the EIPA
dd
EIP
ord
er Use the Add EIP Order function to enter a trade order schedule –once the details are set
then the scheduler will always alert you two days ahead of a scheduled trade order
EIP Order Scheduler1)Choose you stock2)Cash Value (amount to be invested)3)Period (weekly, monthly, quarterly, semi-annual)4)Start & End Date5)Click Submit to enter schedule
Or choose your own
COL’s Stock Picks
Getting Started with the EIPV
iew
EIP
Ord
er You can review your scheduled orders under the View EIP Orders function
Cancel / Change Your scheduled order detailsYour next buy schedule is
automatically determined
based on your starting
date and period entered
Getting Started with the EIPC
xl/C
hg
You can review your scheduled orders under the View EIP Orders function
Cancel Option: Change Option:
User can only
change the Cash
Value, Period and
End Date
Enter your password for confirmation
7000
Getting Started with the EIPR
em
ind
er
Two days before an EIP order will be activated, an e-mail reminder will be sent to you to
remind you about the upcoming order
You have mail!
Getting Started with the EIPD
ay A
dvi
sor
On the day the EIP order becomes active, a message is displayed to the user on the web
site reminding him/her of the EIP order
•The reminder will state the EIP order
details and will give the user the option
to enter the EIP order immediately or to
cancel the entry of the EIP order.
•If the user takes no action (buy or
cancel), the EIP order will not be
processed.
AC 7,000
Click to bypass the
scheduled order for the
interval
Click to activate the buy
order entry function
Getting Started with the EIPEI
P O
rde
r En
try
If the EIP order BUY NOW is clicked on, the order entry window is activated showing the
EIP option already chosen along with the pre-calculated board lot and best asked price
*Note:
•If an EIP order is set off while
the market is in pre-open,
open, or run-off status, the
regular order entry window is
activated.
• If set off while the market is
closed, the off-hours or ATO
order entry is activated.
•An EIP order entered using
the ATO order entry facility
will need the manual entry of
volume and price.
•All EIP orders are still subject
to matching (it may not be
automatically filled)
EIP Option*
Values are automatically filled
based on EIP Data but can be
modified by user
Getting Started with the EIPEI
P P
ort
folio
The user can track the performance of the EIP records through the EIP Portfolio* page
AC Quarterly 7,000 8/6/2008 11/7/2008 20 301.17 305 76.60
No of EIP
shares
Average
Buying Price Current
Price
Your
Gain/Loss
*Note:
Your EIP Portfolio shows that
part of your regular portfolio
that has been purchased for
the EIP
305.0000 301.1650 20 20 20 76.60 1.28% 6,100.00
6,100.00
76.60 1.28%
21,988.53
Getting Started with the EIPP
ort
folio
The regular Portfolio page* will now have an added field to display the # of EIP shares
Total Shares*Note:
The user can sell their EIP shares anytime by using the
sell order box and clicking on the EIP term button; an
order to sell your regular portfolio may flow over to the
EIP portfolio if your order exceeds those bought in the
regular portfolio
No of EIP shares
Getting Started with our EIP4
ste
ps
Open an Account
Decide on your investment amount
and frequency
Choose dynamic companies to invest
in
Schedule and follow your purchases over
time
1
2
3
4
• Fill up the application form
• Provide 2 copies of valid ID
• Provide copy of billing statement
• Fund account:
COL EIP - P5,000
Open an Account
THANK YOU!
To learn more about COL’s Easy Investment Program, visit our website at www.citiseconline.com or watch our EIP walkthrough video at http://www.citiseconline.com.ph/NewEIP/EIPVideo.aspFor inquiries: Call our customer hotline at 6-333-777 or email at
Also attend our free “Investing in the Stock Market Today” introductory seminar held weekly