investment and stocks

[gem]

hi ppl, somebody out there who can shed lights on the above topic as to when to buy and when to sell/invest stocks? any indicators to base on?

[KuyaDanny]

The most important rule to follow is: do not invest money which you need to use soon, or which you can not afford to lose (at least a part of it, anyway).

It is easy to be tempted by the "fantastic" gains other people have made in the market. But for every winner there is a loser, and we tend to hear only about the winners.

[gem]

thanks for the tip, any indicators to look for when picking up for a particular investment?

[KuyaDanny]

Keep reading this thread. I'll add to it little by little.

Do you have friends in the securities industry? Maybe ex-classmates? You should start by educating yourself and having access to available information about the companies you want to invest in.

[gem]

Thanks for the tips and advices

I know that this is a risky type of business, but it will be worth it in the long run.

You cannot expect to always win in this game, there r a lot of downfalls and hurts too.

[gem]

I also believe that knowledge in a particular business will help u to reduce mistakes/errors/etc. and that is what i am looking for.... i know some basics stuff, but its not enough to make me feel confident as to how to pick for the right "one"

Your advices and tips r greatly appreciated, thanks.

[doink]

i suggest u consult with either a trader or a broker

[RitaB]

Doink: how do I get in touch with a broker or trader?

Do you know any good ones? And how much do they charge?

[gem]

where can i find these good brokers? and how much? any tax implications besides the VAT?

[what_a_guy]

gem,

"One" of the technical indicators you can use is the RSI index...it is a neat tool to use.

[gem]

what_a_guy,

how do i interpret the RSI? and where can i see this type of index?

[gem]

kuya Danny,

help!!!

[what_a_guy]

Gem,

Soweee ah, na-delay ang reply ko. Here is da link to ONE of the TECHNICAL tools you can use. Mahaba kasi and explanation kaya I referred you to the link. Use an Excel spreadsheet to calculate and chart the numbers for you.

http://www.e-analytics.com/rsi.htm

To compensate, here is a song that reflects what happened to the markets last week....(KuyaDanny, feel free to Snip the song pag off-topic ito)

============================

Sung to the tune of American Pie

A long, long week ago I can still remember How the market used to make me smile
What I'd do when I had the chance Is get myself a cash advance
And add another tech stock to the pile
But Alan Greenspan made me shiver
With every speech that he delivered
Bad news on the rate front
Still I'd take one more punt

I can't remember if I cried
When I heard about the CPI
I lost my fortune and my pride
The day the NASDAQ died

So bye-bye to my piece of the pie
Now I'm gettin' calls for margin
*Cause my cash account's dry
It's just two weeks from a new all-time high
And now we're right back where we were in July
We're right back where we were in July

Did you buy stocks you never heard of?
QCOM at 150 or above?
*Cos George Gilder told you so
Now do you believe in Home Depot?
Can Wal-Mart save your portfolio?
And can you teach me what's a P/E ratio?
Well, I know that you were leveraged too
So you can't just take a long-term view
Your broker shut you down
No more margin could be found
I never worried on the whole way up
Buying dot coms from the back of a pickup truck
But Friday I ran out of luck
It was the day the NAAAAASDAQ died

I started singin'
Bye-bye to my piece of the pie
Now I'm gettin' calls for margin
*cause my cash account's dry
it's just two weeks from a new all-time high
and now we're right back where we were in July
We're right back where we were in July


[This message has been edited by what_a_guy (edited 04-24-2000).]

[This message has been edited by what_a_guy (edited 04-24-2000).]

[gem]

what_a_guy,

thanks much, and i like ur song a lot too :)

[cianoy]

Gem,

You can try visiting my site sometime. It's generally for novice investors.
http://geocities.com/cianoy

To me the most important indicator is cash flow. It's a better indicator than net income because income can be manipulated, depending on the accounting principles you apply. What's the point in selling a lot, if you can't collect from these sales? Wala ka ring pera. Wala ka ring pambayad ng utang.

There are three basic cash flow subdivisions: operating, investing and financing. Most importantly, your operating cash inflows must be able to cover your outflows. Otherwise, that means your company is losing money, or draining its cash to be more specific. If that continues, how will you expand then (investing)? If you don't have money, you probably have to borrow (financing) or raise capital through the stock market (financing). While it does happen once in a while, specially if you're expanding very rapidly, it's a good idea to have enough cash to cover your day-to-day operations, your expansion, as well as to pay off debts.

;-) Next time ulit

[what_a_guy]

Gem,

I am not sure...but..are you an Accountant? I was going through some posts quickly and I thought I thaw someone mention you being an accountant...maybe it was somebody else...hmmm.

[gem]

yup, thats me what_a_guy. thanks for the so many feedbacks and tips. I'll be reading thru this one at a time.

cianoy, thanks too.

do u knw where can i find good brokers? and how much do i have to pay? whts the rule of thumb re: volume? is that with high volume, its cheaper, but involves a greater risk? whts the best stock to invest in the phil market? help naman.

[what_a_guy]

Gem,

Your Welcome and Good Luck.

============================

Barron's Top 12 of 27 On-line brokers in the US:

National Discount Brokers
DLJ Direct
Merrill Lynch
American Express
Morgan Stanley
AB Watley
E*Trade
Schwab
Muriel Siebert
WallStreet Electronica
Datek
SureTrade


Barron's Top Investment Websites for Personal Investors
http://moneycentral.com/ http://www.morningstar.com/ http://cbs.marketwatch.com/ http://quote.yahoo.com/ http://www.thestreet.com/ http://www.siliconinvestor.com/ http://www.fool.com/ http://www.bloomberg.com/ http://www.wallstreetcity.com/ http://www.multexinvestor.com/ http://www.stockpoint.com/ http://investing.lycos.com/ http://www.clearstation.com/ http://www.briefing.com/ http://www.thomsoninvest.net/ http://www.ragingbull.com/

WAG

[what_a_guy]

On ON-LINE Brokers: How Barron's ranked them. (from Barron's Online)

Trade Execution Process: process of placing and confirming trades. A well-organized trading screen that offers a current real-time quote; drop-down boxes to help avoid data-entry errors, and error checks that don't stop you in your tracks. Confirmation reports that either pop up or are easy to find along with portfolio, position, and account-balance updates in real time

Ease of Use: How easy was it to navigate around the site? Does the layout of the site make sense and minimize the number of mouse clicks it can take to get from one place to another? Sites that keep you a mouse click or two away from any other area get higher rankings than those that require navigation through an online obstacle course.

Reliability and Range of Offerings: Was the site accessible every time we loaded it? Did the graphics snap onto the screen, or did they crawl?

Amenities: Can you get meaningful quotes, charts, news and analysis quickly, and view them on a well-laid-out screen? Is it easy to see how your holdings or other issues you're watching are performing?

Commissions: What's the trade going to cost?

================
if you wish to subscribe to WSJ.online, annual cost is around US$50..very informative...it includes Barron's Online.

[cianoy]

Gem,

I presume you're looking at the local stock market right?

I don't believe there's a rule of thumb as to how much you should invest. Personally, my minimum is about P10K per transaction. Any less and you'd have a hard time covering your fixed costs.

The only rules of thumb I believe that apply are: buy low and sell high, invest only money you can lose, and diversify your portfolio.

Good brokers? Well it's hard to say. I've traded with IB Gimenez, TA Securities and SB Equities. Well, I can't say I jumped for joy with their service. You'll just have to try it out for yourself I guess. As long as your broker takes care of you, you're fine.

If you feel that your broker's only concern is to get you to trade, then look for someone else.

Best stock - that really depends on what your investment objectives are. It also matters how long your investment horizon is. Are you after quickie gains? Or do you want to invest in a company that you can just ignore for years and know that your investment is growing?

Offhand, the stocks that have been outperforming are Globe, Manulife, and Sun Life. They must be doing something right. With this heat, I think La Tondena will have strong water volumes. A small unnoticed company is SM Development Corporation. It has lots of cash, marketable securities and minimal debt. It also trades very cheaply. Universal Robina seems to be out of the market's favor lately, but recently I've discovered that it also has a lot of cash. It has also pared down receivables which I take to mean that they've improved collection. They have profitable regional businesses. Their cashflows are positive. Cosmos seems to be on track despite Coke and Pepsi's sufferings.

Well that's all for now. Remember, before don't just take anyone's word for it. Study these companies yourself. ;-)

[gem]

I am first looking and studying the local market. Cianoy, can u give me their contact numbers? (the brokers) and for u, whts a good stocks out there, at least i could focus myself on those for the meantime... and later go to the others.

wga, thanks, will go thru this one by one to study evrything. any recommendations on wht stock is good abroad? local?

[what_a_guy]

Gem,

Ooops..sorry..nakatali ang kamay at paa ko..pati na rin yung dila..mmmm.mmm.mmm. (Conflict-of-Interest) for the stock recommendations.

Yung recommendation ni cianoy...two thumbs up (I can still use my thumbs). Si cianoy, KuyaDanny & others can help you for sure...then just get the consensus and do your own research. The sites that you are currently reviewing should also give you some insight on what are da good companies to invest in.

Good luck na lang.

regards,

WAG Junior

[This message has been edited by what_a_guy (edited 04-29-2000).]

[This message has been edited by what_a_guy (edited 04-29-2000).]

[KuyaDanny]

Transaction costs for stock trading in Manila:

When buying stocks:

Commission: 0-1.5% of the total cost of the shares. Actual rate will be dictated by your broker.
VAT: 10% of the commission.
Doc Stamp Tax: P1.50 for every P200 of par value of the stock purchased.
PCD Fee: 0.0000917 * the total cost of the shares.

When selling stocks:

Commission: 0-1.5% of the total value of the shares. Actual rate will be dictated by your broker.
VAT: 10% of the commission.
Sales Tax: 0.005 * the total value of the stock sold.
PCD Fee: 0.0000917 * the total value of the shares.

[This message has been edited by KuyaDanny (edited 05-04-2000).]

[richyuppie]

what_a_guy, what lyrics! Cool!

Indeed!

[Hulk]

Originally posted by cianoy
Gem,

You can try visiting my site sometime. It's generally for novice investors.
http://geocities.com/cianoy

To me the most important indicator is cash flow. It's a better indicator than net income because income can be manipulated, depending on the accounting principles you apply. What's the point in selling a lot, if you can't collect from these sales? Wala ka ring pera. Wala ka ring pambayad ng utang.

There are three basic cash flow subdivisions: operating, investing and financing. Most importantly, your operating cash inflows must be able to cover your outflows. Otherwise, that means your company is losing money, or draining its cash to be more specific. If that continues, how will you expand then (investing)? If you don't have money, you probably have to borrow (financing) or raise capital through the stock market (financing). While it does happen once in a while, specially if you're expanding very rapidly, it's a good idea to have enough cash to cover your day-to-day operations, your expansion, as well as to pay off debts.

;-) Next time ulit



Yup! Cash flow is an excellent tool. I would however recommend using the free cash flow method versus operating cash flow as used by most analysts. Free cash flow is more stringent as it includes several capital expenditures and dividends paid with operating cash flow. :D


:frank: