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Stock Market Newbie

August 5, 2010

Yesterday was a very interesting day for me. After several days of pondering and rationalization, I finally had the nerve to gamble some hard-earned money. You see, ever since the first days of college way back when I was still in Ateneo, I was always interested with the stock market. At age 17, I was already getting a lot of information and documents via courier from brokers and even the PSE just to satisfy my hunger.

Of course, I had no money then. All I had was my measly allowance which was just enough to cover for my daily food expense, travel allowance, and lotsa photocopies. Now, you could say I have some cash stashed away somewhere. Months ago, it was substantially bigger (but not that big, just respectable). But thanks to controlled extravagance, the unfortunate series of lost phones, and the fact that I had to pamper my appetite since I got sick, my savings dwindled right in front of my eyes.

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As such, I have decided to risk some of it in the Philippine Stock Market. The key rule is to never invest money that you can’t afford to lose. Technically, I am not rich, and should not be able to afford to lose the X amount of money I decided to invest. But knowing me and the sheer convenience of withdrawing a couple of thousands pesos through the ATM over a span of time, I’d rather take a leap of faith this time around than to find out one fateful day that my money evaporated into nothingness. Moreover, I believe I’d rather be an owner of “worthless stocks” than an owner of an old-model Macbook Pro or something. Some people want the latest gadgets. I just want to own some goddarn stocks.

For my first time, I decided to avail of the services of RCBC Securities as my stock broker. This is kinda baffling for some because most would go for Citiseconline or BPI Trade. To be honest, my investment is higher than the minimum, so meeting the financial requirement is not the issue. It’s just that Citiseconline had a lot of requirements in order to apply for an account. As for BPI Trade, I didn’t know it existed (hehehe). I of course did not consider brokers that does not have on-line capabilities. But lo and behold, as fate always make a point via humor, it turns out that RCBC ezTrade is still not fully functional and I still had to manually order via email. Talk about pointlessness, huh?

Anyhoo, with the exception of the bitch of a receptionist they had at the ground floor of the Yuchengco Tower at RCBC Plaza and the dimwited guard who “shoved me out” of the RCBC Securities office claiming I was at the wrong floor, I kinda liked the pseudo-VIP treatment I received especially from the broker. Maybe it is because they don’t have much clients? I dunno really, but when I deposited my money at the RCBC branch at Malayan Plaza Ortigas, I swear I was the only client there. The guards did not even inspect or frisk me which made me think that this branch is a potential cashcow for robbers (Attention: RCBC Security Team).

Since yesterday, I made my list of companies that I wanted to invest in. The Batch 1 are as follows:

  • JG Summit (JGS) – The Gokongweis are out and about these days. Besides, if I won’t be able to touch the Cebu Pacific IPO which could happen later this year, then a JGS stake would do.
  • First Gen (FGEN) – Energy as an investment? I like. I know though that this company is not an investor’s favorite, but I would like to test the theory of “buying low” with this company.
  • Phoenix Petroleum (PNX) – I see Phoenix sprouting like mushroom all-over Mindanao. I have had have a very good feeling about this.

However, a few hours later, after receiving advice from my broker, a lot of on-line discussions, and a lot of internalization, I decided to scrap First Gen and Phoenix. Will I regret it soon enough? I dunno. Only time would tell.

Batch 2 came a couple of hours later:

  • JG Summit (JGS) – Same explanation as above.
  • Alphaland (ALPHA) – I have a very good feeling about Mr. Roberto V. Ongpin and the fact that he isn’t slowing down. In addition, he is also connected to the Ashmore Group and their widely publicized interest in Petron and the Philippine Property Market via Alphaland.
    With Noynoy as President and his idea of a strong private-public sector collaboration, this investment might be a good one. Of course, there’s no good track record for Alphaland which kinda makes it risky. In fact, another company Mr. Ongpin is connected to, ISM Communication, sucks like shit at PSE, but this does not scare me. However, I just bought at the minimum to be safe. The stock price is kinda high after all.
  • Banco de Oro (BDO) – There’s nothing like a blue chip (this is a blue chip, right?) to make me feel rich even though I still commute on a daily basis. Hehehe.
  • DMCI Holdings Inc. (DMC) – I love the way DMCI does business. I also know that they have been focusing entirely on private projects due to some “biases” in public biddings before which led me to believe DMCI’s full potential is still not fully-realized. Now that there’s a new administration and the new DPWH Secretary, Mr. Rogelio Singson, vows to achieve a more transparent public-bidding process for government projects, this might lead to DMCI expanding to public sector projects. Just a trivia, Mr. Singson happens to be the former President & CEO of Maynilad which is partially-owned by DMCI). I’m not saying there’s gonna be any irregularity here (same with Alphaland). All I’m saying is, I love the fact how the stakeholders and personalities are connected to one another. And what can we do, in the world of business, connection is “king”.

Disclaimer: I am a stock market newbie and the way I analyze, underanalyze, or overanalyze things, may be partially or completely inaccurate. As such, I’d like to hear comments from stock market experts who can lead me to the right track. Thanks!

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13 Comments leave one →
  1. intresting... permalink
    August 6, 2010 10:49 pm

    hey what the minimum for bdo?

  2. king del rosario permalink
    August 13, 2010 8:07 am

    that would be the current stock price multiplied by the board lot. the bigger problem is that some brokers may not feel like “wasting” their time with a very very very small-time investor. start with at least P10,000. 🙂

  3. thanks permalink
    August 14, 2010 1:24 am

    so i can start from 10k with bdo?

  4. king del rosario permalink
    August 16, 2010 3:34 am

    technically yes…. try calling up http://www.rcbcsec.com/

  5. ok... permalink
    August 20, 2010 7:30 pm

    kung papapiliin ka ulit rcbc trade o bpi?

  6. king del rosario permalink
    August 23, 2010 8:51 am

    difficult to chose. i have no experience with bpitrade. 🙂

  7. September 21, 2010 8:35 am

    Sir King ,

    Any updates on EZ Trade..i am curently on the verge of making a decision either to go on RCBC or CITISEC..I am an OFW here in the Middle East and the requirements of citisec are truly many.thats why im contemplating on RCBC.kindly share your stock trading experience and like you i also love stocks.Thanks your highness : )

  8. king del rosario permalink
    September 21, 2010 12:31 pm

    sa awa ng diyos wala pa ring bago. however, this may be a good thing for me. i want to focus on long-term investments, nothing too quick and speculative. 🙂

  9. May 2, 2011 7:21 am

    Glad to see this information.its very useful for everyone.thanks for sharing this post.
    stock market

  10. stoked permalink
    June 11, 2011 3:35 am

    any updates? 😀

  11. king del rosario permalink
    June 12, 2011 10:30 am

    wala eh. haven’t been active in a while. i’m not really into speculative purchases…. i’m into long-term investments….

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