Appeeling Stocker

03/06/2020

25/05/2020

Bottom-up investing is an investment technique which is focused on the capability and potential of individual companies.

In bottom-up investing, investors and analysts look at the financial strength and resilience of individual companies, and focus on the general condition of the market and the economy is just secondary. This is in contrast with top-down investing.

25/05/2020

Documentary Recommendation:
History 101: Rise of China

Rise of China is the third episode of the first season of the Netflix short documentary series, History 101. The episode discusses the ascent of China as a global economic powerhouse and how its economic policies and actions affects the world.

24/05/2020

PSEI end of week review - Week 21

Caveat: The contents of this post shall not be taken as an expert opinion but only as the individual judgment of the page owner.

PSEI closed the trading week at 5,539.19 down by 1.17% from Thursday and down by .05% from last week’s close. The PSEI is also up by 37.14% from its 52-week low of 4,039.15 and down by 34.21% from its 52-week high of 8,419.59. Year-to-date, PSEI is down by 29.12% and down month-to-date by 2.83%.

The market closed the week with a sharp 1.17% decline and is now on a three-week losing streak. The Friday close also stopped a three-day winning streak though this may be accredited partly to the holiday effect. The good news for the market is that it was able to hold the critical support level of 5,500 though it experienced a scare when closed at 5466.88 on Tuesday. Charts also show that PSEI is above MA50 and below MA9 and MA 20. MACD lines have also touched and the next trading week (week 22) may be critical since it can determine whether or not the blue line goes below the red line.

If the immediate support of 5,500 fails to hold, the chance of going back to 5,100 - 5,200 will re-emerge. On the other hand, if the market makes a recovery and returns to the 5,950 resistance, then the next target would be the 6,700-6,800 level.

As with previous weeks, there are still a lot of uncertainties on how the coming weeks and months will play out for the market and the economy. The best catalyst we are waiting for is still a cure and/or vaccine for COVID-19. Secondary to this is how the government decides on the quarantines and the corresponding policies that go along with them. Recently, It was decided that NCR will be placed under a Modified Enhanced Community Quarantine (MECQ), which is obviously an eased version of the ECQ.

What to watch out for:

- MECQ will end on May 31 and the decision on whether to remain in MECQ or shift to GCQ will be decided this week. The current sentiment is that the government may lean toward a “zoning concept” when it comes to lockdowns.

- There has been an increased optimism in the positive effects of the drug Remdisivir in COVID patients. Any further good news regarding this drug can be a great catalyst for the market.

- Demonstrations in Hongkong are expected to resume due to an expected imposition of a new Hongkong Security Law. This may affect neighboring markets such as the PSE.

Top gainers for week 21
1. EVER (146.15%)
2. IMP (24.00%)
3. SSP (16.52%)
4. PBC (15.15%)
5. GREEN (14.52%)

Top losers for week 21
1. VVT (-26.96%)
2. MFIN (-21.00%)
3. CEB (-15.73%)
4. FPI (-13.33%)
5. COAL (-13.20%)

Advances - 71
Declines - 149
Unchanged - 21

Foreign Buying - 10,188,984,666.78
Foreign Selling - 13,445,063,068.75
Net Foreign Selling - 3,256,078,401.97

YTD:

Advances - 25
Declines - 233
Unchanged - 2

Net Foreign Selling of 56,463,374,569.43

24/05/2020

Top-down investing is an investment technique which is based on analyzing the general condition of the economy, especially macroeconomy, and their relevance and effect to stock prices

In top-down investing, investors and analysts look at how the overall economy is doing, its future conditions, macroeconomic figures such as GDP and unemployment rate, credit rating, interest rate, and fiscal and monetary policies. Investors will then decide on what industries and companies will thrive and emerge given the economic conditions.

An example of this is when Warren Buffett dumped stocks of airline companies, an industry hardly hit by the restrictions due to the COVID-19 pandemic.

23/05/2020

1,160,000,000,000 (1.16 trillion) pesos was the amount wiped out off the stock market on March 19, 2020. Trading in the PSE was suspended for two days on March 17 and 18. When it resumed operations on March 19, the circuit breaker was triggered and the PSE experienced its worst drop in history. PSEI nosedived to as low as 4039.15 before gaining a little upward momentum.

23/05/2020

22/05/2020

Famous Friday - Robert Kiyosaki

Robert Kiyosaki is a businessman, author, and a well-renowned advocate of financial literacy.

Kiyosaki is known for his bestsellers which include the books Rich Dad Poor Dad and The Cash Flow Quadrant, with Rich Dad Poor Dad selling more than 40 million copies. The main themes of Kiyosaki's books center on personal finance and personal investing.

Kiyosaki also hosts podcasts and holds financial literacy seminar.

Despite his accolades, Kiyosaki also has his share of controversies. Some detractors have accused Kiyosaki's seminars to be scams whose factual accuracies have not been determined. Kiyosaki has also faced lawsuits regarding the conduct of such.

Some of Kiyosaki's famous quotes:
- Academic qualifications are important and so is financial education. They're both important and schools are forgetting one of them.

- A lot of people are afraid to tell the truth, to say no. That's where toughness comes into play. Toughness is not being a bully. It's having backbone.

- It’s easier to stand on the sidelines, criticize, and say why you shouldn’t do something. The sidelines are crowded. Get in the game.

- Successful people ask questions. They seek new teachers. They’re always learning.

- Successful people don’t fear failure. But understand that it’s necessary to learn and grow from.

(photo from businessinsider.com)

21/05/2020

The market posts a gain on the fourth trading day and returns to the 5,600 level. PSEI is at 5,604.49 up by 22.53 (.40%). MEG is top index gainer with a 3.13% increase while SMPH is top index loser with a 2.36% decrease.

Advances - 75
Declines - 86
Unchanged - 57

21/05/2020

A Financial Statement is a summary report that shows the financial activities and financial condition of a company.

A financial statement generally contains five portions:

- Income Statement
- Statement of Financial Position (Balance Sheet)
- Cash Flow Statement
- Statement of Changes in Equity
- Notes to Financial Statements

For listed companies, financial statements must be audited by reputable auditing firms. These are then submitted to the appropriate regulatory agencies and are made available to the public. These are easily accessible through PSE Edge and the listed company's website.

The financial statements are used by analysts and investors as the main basis for fundamental analysis.

20/05/2020

A SWOT Analysis is both a planning and due diligence technique which aims to determine the strengths, weaknesses, opportunities, and threats (SWOT) for a company or an industry.

For investors, SWOT Analysis is often a part of fundamental anaylsis. For example, using SWOT analysis, investors may determine if a company can be resilient despite the financial woes caused by COVID-19. It can also help investors determine whether a certain company or industry will thrive in the changes brought about by the new normal.