MoneySense Live - Where to Invest - Stock Market

Transcript

3. • 25 years of experience in the financial services industry • Independent Financial Adviser at Rampver Strategic Advisors • SAVP, Head of Training for Philam Asset Management, Inc.
4. MODULE 2: EQUITIES MARKET A. THE CONCEPTS What are equities Pros and cons of equities Private equity vs. publicly listed stocks The Philippine stock market The PSEi and various sectors How to make money from equities
5. MODULE 2: EQUITIES MARKET B. THE STRATEGIES Small cap vs. mid-cap vs. large cap Blue chips vs. second liners vs. speculative stocks Growth vs. value vs. income strategy Fundamental vs. technical analysis How to choose the right stock to buy Determining the right price for a stock When to buy a stock When to sell a stock Outlook on the stock market Stocks vs. stock funds Investing in ETFs How and where to open an account
6. Another term for “Stocks” which represent a corresponding ownership or interest in a corporation. The holder of such known as a ‘stockholder’, is considered a part owner of the company. Equities
7.  Common Stock  Preferred Stock At the Phil. Stock Exchange Major Securities Traded
8. Common Stock • Representation of ownership • Owners share in the success when a company profits. • With voting rights • Owners are at risk if the company falters • Last claim on dividends and assets during liquidation Source: www.pse.org.ph
9. Preferred Stock • Senior than common stock • Pays fixed dividend based on par value • No voting rights. • Limited risk and potential gain. Source: www.pse.org.ph
11. Pros and Cons of Stock Trading or Investing PROS:  High Potential Return  Liquid asset  Availability of Information  Low Capital Requirement  High Volatility  Management Challenge CONS:
12. 12 Equities Will Always Outperform Fixed-income Instruments Over The Long Term Why invest in stocks?
13. The Stock Market A systematic and centralized market place where units of ownership, known as common stock or preferreds, of LISTED businesses are traded (bought & sold). Description
14. The Stock Market The Thought
15. The Stock Market Underwriter Private Co. IPO Investors Broker Stock Exchange The Result Public Co.
16. The Philippine Stock Exchange Established in 1927 One of the Asia’s oldest Known as Manila Stock Exchange Makati Stock Exchange est. 1963 MSE in Tektite MKSE in Ayala Tower One Electronically linked in 1994 History
17. How to Make Money in Stocks Capital Gain Source: www.firstmetrosec.com
18. How to Make Money in Stocks Cash Dividend Source: www.firstmetrosec.com
19. Stock Dividend Stock Rights Source: www.firstmetrosec.com 3 How to Make Money in Stocks
20. Types of Companies – by Sector
21. 3 Types of Companies – by Capitalization
22. 3 Types of Companies – by Capitalization
23. Investment Analysis Fundamental Analysis Technical Analysis Macro Economy GDP / GNP Inflation / Deflation Fiscal Policy Monetary Policy Sector Analysis Company Analysis Book Value Earnings & Ratios Dividends Cash Flow Dow Theory Principles Charting Supports & Resistances Volume Analysis Patterns / Formations Moving Averages DMI Spread RSI Stochastics MACD
24. How to Choose Stocks? Are you conservative or aggressive? Are you going to trade or invest? What is the current market cycle? Will I go for Value or Growth? WHAT STOCK TO BUY? Is it the right time? At what price? Where do I exit?
25. Investment Analysis Top Down Approach Economy Industry Company
26. Industry: Business Cycle Fundamental Analysis
27. Company: Earnings Source: www.firstmetrosec.com Fundamental Analysis Others: •Business Model •Management Team •Strategic Plans
28. Company Source: www.firstmetrosec.com Book Value/share Cash Flow Ratios Dividend Fundamental Analysis
29. Company Source: www.investopedia.com Book Value/share Free Cash Flow Earnings / Share Fundamental Analysis Price Earnings Ratio
30. PLDT (TEL) Market Price : P3,000.00 / share Globe Telecom (GLO) Market Price : P1,500.00 / share Example: Which one is CHEAPER? Which stock will you BUY? PLDT (TEL) Earnings Per Share : P250.00 Globe Telecom (GLO) Earnings Per Share : P100.00 PER : 12X PER : 15X What is the potential PROFIT or LOSS? Fundamental Analysis
33. Company Source: www.investopedia.com Dividend Per Share Fundamental Analysis Price to Free Cash Flow Price/Earning Growth Ratio Annual Dividends – Special dividend Outstanding Shares Dividend Yield Annual Dividends Per Share Price Per Share Price / Earnings Ratio Annual EPS Growth Market Capitalization Free Cash Flow
34. Technical Analysis
35. Technical Analysis Source: PSE
36. 2014 Outlook - Daily
37. 2014 Outlook – Weekly
38. 2014 Outlook - Monthly
39. The ETF Exchange Traded Fund Investors Fund Mgr. Stock Exchange / Bond Exchange / Banks Issues Unlimited Shares Unlimited Capital Issues Limited # of Shares LISTED on the Stock Market Market Price is the basis of trade
40. Investing in Stocks Account Opening: Requirements & Fees  Full Service Fee: 0.5% to 1.5%  Online Trading 0.25% Single / Joint / Corporate TIN Valid ID (government issued) Proof of Billing AOI, by laws, sec cert (if corporate) Initial Investment (cash or shares)
41. Make Money in the Stock Market NOW, YOU CAN! "It's far better to buy a wonderful company at a fair price, than a fair company at a wonderful price." - Warren Buffett Rickygso2012@gmail.com www.rickysogood.com