Stocks Update

Guidance for Stock Market Investing Exclusively for TrulyRichClub Members Note: To understand the Stocks Update, first read Bos Ebook, My Maid Invests in the Stock Market. Click here www.TrulyRichClub.com to download now.

Volume 4, No. 5

March 2013

Dont Interrupt the Compounding!

If You Withdraw P50,000 Today, Youre Withdrawing P1 Million Tomorrow
Oh, I know its tempting. When the stock market is growing sweetly (like now), its sooooo tempting to withdraw just a little bit for that new ladies watch. Or a Hong Kong vacation. Or a birthday party in Boracay. As much as possible, DONT. If you withdraw, youre interrupting your compoundingthe greatest mathematical force in the universe. Let me give you an example Johnny saw that in a span of 18 months, his stock market fund has already grown from P100,000 to P150,000. Hes ecstatic. Hes thanking God. Hes inviting friends to join him at the TrulyRich Club. (Very good!) Hes dancing the gangnam dance. But then one day, while walking in a mall, Johnny sees this really nice spaceship-looking gizmo that functions as a cellphone/coffeemaker/vacuum cleaner all rolled into one. It can make phone calls. It can make coffee. It can clean your house. Its astounding. (Okay, Im exaggerating. But Im simply saying that therell be temptations out there that are very real.) The price? P50,000. Definitely not in Johnnys budget. Unless He thinks of his stock market investments. Hes got the money. He decides to go for it! He withdraws P50,000 from his stocks and buys the gizmo. He can now talk to his girlfriend and make coffee and suck dust from the living rooms carpet. Question: Did he really withdraw P50,000 only? Nope. In 20 years, if his stock market investments grew by 16 percent a year, his total money would be LESSER by P1 Million. Why? Because he interrupted the compounding. Im not kidding. Compute it yourself. I urge you: Avoid withdrawing from your stock market investments. If you feel tempted, just remind yourself: When I withdraw P50,000 today, Im actually withdrawing P1 Million tomorrow. May your dreams come true, Bo Sanchez

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Stock Market Success Does Not Require Market Timing

By Mike Vias Have you ever heard of the saying, timing is everything? Indeed, in life timing is important. In launching a business, in coming out with a new product, in talking to people, even in pursuing a partner, timing is key. Sometimes timing can make or break the success of an endeavor. Thus, we are trained or wired to seek perfect timing. Now, I understand why some people coming in the stock market are preoccupied with timing the perfect entry. People would always ask me, Mike, when is it a good time to buy? Should we buy today? Is this a good price to buy? Is it time to sell? However, Id like to break this notion that to attain stock market success one needs to time the market perfectly. That one needs to buy and sell at the most opportune time. False. Especially, in a possible volatile market like we have, it would be very difficult to enter and exit perfectly. But, with a long-term investment strategy and great companies to invest in (just like what we have in SAM), it is possible to make good money in the market without having to consider timing. For this issue, I would like to make some suggestions that would make it easier for us investors to participate in such a market. How to Take Advantage of the Market First, USE LONG-TERM MONEY. We expect to see a lot of volatility or sudden movements in price in the stock market. This is caused by the concerns regarding the relatively expensive prices of Philippine stocks as compared to stocks in other markets. Another driver of such volatility is the continuous threats from development overseas. Thus, as a protection, invest only the money that you will not need in the near term (tuition fee, medical bills, purchase of house, etc.). By doing this, you will not be forced to liquidate stocks at a loss assuming the market may undergo a correction during the time you need the funds. Therefore, simply select a comfortable amount that you can save and invest monthly or quarterly. Second, BUY REGULARLY AT BUY BELOW PRICES. I encountered a friend recently who only bought a SAM stock once and waited until the Target Price to sell. I told him, he could have made more profit if he continued buying more of the stock each month it was under the Buy Below Price. So make sure you dont forget to buy your SAM stocks every month or every quarter. Plus, whenever a SAM stock goes above the Buy Below Price and later on goes back below it, continue buying once more. This is called buying on dips. Third, USE PESO COST AVERAGING. If you are the type of investor who just cannot pull the trigger to buy stocks because of concerns due to high prices, or fear, use the peso cost averaging strategy. This means buying shares with a fixed amount of money on a regular basis (as mentioned above). The advantage to this strategy is that it makes investing more affordable and it takes emotions out of investing. Take note that emotion such as greed and fear are widely known to be the culprit for losses among retail investors. Fourth, ADD SOME STOCKS WITH HIGH DIVIDEND YIELDS, in our case, MER. Buying high dividend yielding stocks whose earnings are not expected to drop and have capital appreciation potential might be a good alternative for investors who are used to fixed income investments. Dividend Yield is a measure of the return on investment that the dividend gives. For example, a stock like MER has a high dividend yield at 3 percent. Essentially, these suggestions are encapsulated in our SAM Strategy that I continually encourage you to use on a regular basis. Doing so will set you up for stock market success!

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March 2013

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More on MER Recently, MER disclosed that it will be joining First Pacific Company Limited of Hong Kong in taking majority 70 percent interest in a 800MW LNG power project in Singapore. It will be a 60-40 joint venture between the two, 60 to First Pacific and 40 to MER. This will give MER a 28 percent indirect stake in the power project and their share in the acquisition cost is $195Mil. COL Research has a favorable view on this investment of MER as this would pave the way for the companys entry into the Singapore power industry. This project is expected to start contributing to MERs earnings in 2014. This is even ahead of MERs other power projects such as the 600MW Subic Coal which will only be completed in 2016. This is promising news for the further growth of MER! Deeper into DNL Established in 1963, DNL has four wholly-owned subsidiaries Oleo-Flats, First in Colours, D&L Polymer & Colours, and Aero-Pack Industries, and a 34 percent-owned affiliate Chemrez. These subsidiaries are leaders in their respective industries, each boasting of a market share of at least 50 percent. Such a leadership position is beneficial for DNL in numerous ways. One major benefit is greater efficiency. This allows DNL to remain competitive, especially for its low margin commodity products such as refined vegetable oils and bio diesel where price is a determinant of sales. The companys focus on innovation has allowed it to earn higher margins. Compared to commodity products, innovative products earn higher margins. For example, DNLs margins for specialty oils, specialty ingredients, and food safety products range from 15-30 percent. On the other hand, its margin for refined vegetable oil product is only 3 percent. With DNLs increasing focus on innovative products, gross margins have been on an uptrend, rising from 5.7 percent in 2009 to 15 percent as of the 7th month of 2012. According to the companys management, it expects net income to reach Php 1.38Bil in 2013. This makes DNL a great investment because of its favorable potential growth.

Here are our SAM Tables (as of March 13, 2013).

STOCK FPH DNL JGS MBT MER MPI SMPH Current Price 108.50 6.71 40.00 117.00 320.00 5.30 18.90 Buy Below Price 120.90 8.48 37.39 129.60 330.40 5.70 22.90 Target Price 139.00 9.75 43.00 149.00 380.00 6.55 26.35 Action to Take Continue buying Continue buying Stop buying for now Continue buying Continue buying Continue buying HOLD: Stop buying * as per Bos instructions

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Volume 4, No. 5

March 2013

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STOCK SYMBOL FPH TOTAL DNL TOTAL JGS TOTAL

DATE BOUGHT Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Feb-13 Mar-13 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Aug-12 Sep-12 Oct-12 Nov-12

PRICE BOUGHT 63.18 61.25 59.55 56.35 55.25 54.25 62.10 62.10 60.50 63.25 63.00 64.90 68.80 78.20 77.50 76.85 80.00 90.30 89.85 93.70 109.00 108.50 6.45 6.71 25.75 26.55 34.00 31.40 32.00 32.50 32.95 33.20 34.10

PRICE TODAY 108.50 108.50 108.50 108.50 108.50 108.50 108.50 108.50 108.50 108.50 108.50 108.50 108.50 108.50 108.50 108.50 108.50 108.50 108.50 108.50 108.50 108.50 6.71 6.71 38.50 38.50 38.50 38.50 38.50 38.50 38.50 38.50 38.50

YOUR RETURN 71.73% 77.14% 82.20% 92.55% 96.38% 100.00% 74.72% 74.72% 79.34% 71.54% 72.22% 67.18% 57.70% 38.75% 40.00% 41.18% 35.63% 20.16% 20.76% 15.80% -0.46% 0.00% 55.87% 4.03% 0.00% 2.02% 49.51% 45.01% 13.24% 22.61% 20.31% 18.46% 16.84% 15.96% 12.90% 23.87%

BUY BELOW PRICE 72.42 72.42 72.42 72.42 72.42 72.42 72.42 77.00 77.00 93.18 93.18 94.09 100.80 102.43 102.43 102.43 96.19 99.74 99.74 108.70 120.87 120.87 8.48 8.48 28.83 30.43 34.78 34.78 34.78 34.78 34.78 34.78 37.39

TARGET PRICE 90.90 90.90 90.90 90.90 90.90 90.90 90.90 106.81 106.81 107.16 107.16 108.20 115.92 117.80 117.80 117.80 110.62 114.70 114.70 125.00 139.00 139.00 9.75 9.75 35.00 35.00 40.00 40.00 40.00 40.00 40.00 40.00 43.00

EXPECTED GROWTH 43.87% 48.41% 52.64% 61.31% 64.52% 67.56% 46.38% 72.00% 76.55% 69.42% 70.10% 66.72% 68.49% 50.64% 52.00% 53.29% 38.28% 27.02% 27.66% 33.40% 27.52% 28.11% 52.09% 51.16% 45.31% 51.16% 35.92% 31.83% 17.65% 27.39% 25.00% 23.08% 21.40% 20.48% 26.10% 25.43%

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Volume 4, No. 5

March 2013

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STOCK SYMBOL MBT TOTAL MER TOTAL MPI TOTAL SMPH TOTAL

DATE BOUGHT Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Sep-12 Oct-12 Nov-12 Jan-13 Feb-13 Mar-13 Jan-13 Feb-13 Mar-13 Dec-12 Jan-13 Feb-13 Mar-13 Feb-13

PRICE BOUGHT 71.52 79.55 75.50 72.00 69.05 71.90 68.00 70.60 78.90 88.00 86.00 88.75 86.50 93.40 93.00 96.05 103.40 112.50 117.00 268.00 300.00 320.00 4.58 4.90 5.16 5.70 18.88

PRICE TODAY 117.00 117.00 117.00 117.00 117.00 117.00 117.00 117.00 117.00 117.00 117.00 117.00 117.00 117.00 117.00 117.00 117.00 117.00 117.00 320.00 320.00 320.00 5.70 5.70 5.70 5.70 18.50

YOUR RETURN 63.59% 47.08% 54.97% 62.50% 69.44% 62.73% 72.06% 65.72% 48.29% 32.95% 36.05% 31.83% 35.26% 25.27% 25.81% 21.81% 13.15% 4.00% 0.00% 40.66% 19.40% 6.67% 0.00% 8.69% 24.45% 16.33% 10.47% 0.00% 12.81% -2.01% -2.01%

BUY BELOW PRICE 78.88 78.88 78.88 78.88 78.88 78.88 78.88 83.07 83.07 93.91 93.91 93.91 93.91 93.91 104.35 104.35 113.04 129.57 129.57 284.35 330.43 330.43 5.08 5.70 5.70 5.70 22.91

TARGET PRICE 93.60 93.60 93.60 93.60 93.60 93.60 93.60 108.00 108.00 108.00 108.00 108.00 108.00 108.00 120.00 120.00 130.00 149.00 149.00 327.00 380.00 380.00 6.35 6.55 6.55 6.55 26.35

EXPECTED GROWTH 30.87% 17.66% 23.97% 30.00% 35.55% 30.18% 37.65% 52.97% 36.88% 22.73% 25.58% 21.69% 24.86% 15.63% 29.03% 24.93% 25.73% 32.44% 27.35% 28.80% 22.01% 26.67% 18.75% 22.48% 38.65% 33.67% 26.94% 14.91% 36.16% 39.57% 39.57%

Mike Vias is a Corporate Accounts Officer and Relationship Manager at CitisecOnline. He is a Certified Securities Representative and a Certified Investment Solicitor.

Stocks Update Stocks Update

Volume 4, No. 5

March 2013

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2012 Top 10 Winners of TrulyRichClubs Stocks

If you followed our Stock Recommendations in the past, youd have enjoyed these earnings. Were reposting this again to encourage you to be faithful to your monthly investments today for the stocks we recommend above. Never give up. And youll have great winners 10 to 20 years from now! Note: The percentage returns cannot be compared between the two tables below. The All Time Winners table does not take into consideration a cost-averaging method. The percentage return is only from a buy-and-hold strategy. The 2012 Table however integrates a cost-averaging method throughout the months it was under the Buy-Below.
STOCKS Ayala Land Nickel Asia Bank of The Philippine Islands STOCK SYMBOL ALI NIKL TIME RECOMMENDED June 2011 to February 2012(3rd week) February 2012 to March 2012 (3rd week) February 2012 to November 2012 (4th week) October 2012 to December 2012 (2nd week) February 2012 to December 2012 (1st week) ESTIMATED TIMEHELD 9 Months 2 Months PRICE RANGE P15.09 to P21.65 P23.75 to P26.20 ESTIMATED RETURN 35% 10.32%

BPI

10 Months

P68.45 to P91.00

34.29%

Ayala Corporation SM Prime Holdings

AC

2 Months

P440.00 to P520.00

17.65%

SMPH

10 Months

P12.48 to P17.00

27.75%

Top 10 Past Winners of TrulyRichClubs Stocks

STOCKS Lepanto Jollibee Security Bank DMCI Intl Container First Gen Co. Megaworld Nickel Asia Ayala Land Energy Devt Co. STOCK SYMBOL LC JFC SECB DMC ICT FGEN MEG NKL ALI EDC TIME RECOMMENDED Dec 2010 to May 2011 Mar 2010 to May 2011 Mar 2010 to May 2011 Sep 2010 to May 2011 Sep 2010 to May 2011 Mar 2010 to May 2011 Jul 2010 to May 2011 Oct 2010 to May 2011 Mar 2010 to May 2011 Mar 2010 to May 2011 TIME HELD 5 Months 14 Months 14 Months 8 Months 8 Months 14 Months 10 Months 8 Months 14 Months 14 Months PRICE RANGE P0.34 to P0.85 P47.50 to P94.45 P53.00 to P96.20 P27.25 to P44.80 P32.40 to P48.70 P9.80 to P14.78 P1.54 to P2.30 P15.00 to P22.40 P11.25 to P16.64 P4.85 to P6.49 YOUR RETURN 150% 98% 81% 64% 50% 50% 49% 49% 47% 33%

(Disclaimer: Past performance doesnt guarantee that youll have the exact same results in the future. After all, your earnings all depend on the markets performance.)

Stocks Update Stocks Update

Volume 4, No. 5

March 2013

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