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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 6, No. 16 August 2015

More Downside Coming?


We love it when our favorite stocks go down.
Last week, we saw some of our favorite issues
triggering our Buy Below Price (MEG, AC, SMPH).
Which was great news for us in the TrulyRichClub.
Finally, we can buy these amazing companies again.
Yes, foreign funds have continued to sell their
holdings here in the Philippines. But not only here,
theyve also sold their holdings in all Emerging Markets
(Indonesia, Thailand, etc).
This is atime when you see panic selling among
smaller stocks. Some went down by 50 percent. This is
the reason why we dont touch them. Please follow our
SAM Table.
Yes, general sentiment is indeed negative and we
might see more downside in the coming weeks. Which, I
repeat, is exciting and wonderful for long-term investors
like us.
Just a friendly reminder: Buy slowly every month.
As long as the Philippine GDP stays above 6
percent, well be fine and youll see a bounce in the
market later on. But personally, I dont want to see a
bounce right away. In fact, I want to see the stock market dive even lower so that we can buy more shares at
cheaper prices. Thats how we grow our small money into millions.

Happy investing!

May your dreams come true,

Bo Sanchez

Stocks Update Page 1 of 10


Shifting Gears Tempering Growth Expectations: Key
Takeaways from
COLs 2015 Mid-year Market Briefing (Part 1)
By Mike Vias


Last August 1, 2015, COL Financial Group, Inc. held its annual mid-year market briefing in the Meralco Theatre.
The theme of the briefing was Shifting Gears Tempering Growth Expectations. Here are some of the key points I
took from the fundamental presentation.
The presentation began with an introduction of its key messages. These are:
1. The Philippine Stock Market Index (PSEi) continues to be on track towards hitting 10,000.
2. The pace towards 10,000 will slow down due to numerous speed bumps.
3. Through good stock picking, there is still opportunity to generate good returns.

Thus, the stock market is shifting gears. Initially we had a good start this year, what happened? What has
changed?

l As of August 1, the PSEi is only up by 3.5 percent after rising to as much as


12.4 percent earlier this year.
l Reasons for pull back:
l Disappointing 1 quarter Gross Domestic Product (GDP) and earnings
st

performance of listed companies led to market sell-off


l It does not help that our peers, Thailand and Indonesia were also sold-off.

This affects us because foreign fund managers would put the Philippines
in an investment basket together with Thailand and Indonesia. So if they
need to sell their positions in Thailand and Indonesia, they would have to
sell their positions in the Philippines as well.
l There is a growth in preference for the Japanese and Chinese stock markets. Although they dont

seem to be as attractive anymore after being sold-off and there seems to be consensus view that
the Chinese economy is not as strong.
l Concerns of contagion precipitated by the possible Greek default. However it did not push

through.

The bad news is, the market might take some time before it is able to recover. This means the market
may go sideways for a while. Here are some reasons for the more subdued outlook:
l Flat net interest margin from banks
l Optimistic outlook on gaming stocks did not materialize due to delay in operations
l Below than expected 1st quarter results for consumer companies as well as more intense
competition among themselves
l Delay in operations also in power generation companies

Hence, COL Researchs PSEi Earnings Per Share (EPS) Growth Forecast for 2015 has been reduced
from 15 percent down to 4 percent. Next year, it is expected to be at 10 percent. Furthermore, because of
the reasons mentioned above, COL Research has reduced its 2015 year-end PSEi index target from 8,300
to 7,950.
In comparison to our peers, Indonesia and Thailand, their markets continue to deteriorate because of:
l Indonesia
l Weak exports

Stocks Update Volume 6, No. 16 August 2015 Page 2 of 10


l High inflation and interest rates
l Disappointing government spending
l Thailand
l Weak exports

l Investment growth hampered by low capacity utilization

l Consumption hurt by high debt levels and tight credit conditions

Their market deterioration would act as drag on the Philippine market.


Another thing affecting our market negatively is the upcoming rate hike of US
Federal Reserve. From 0.25 percent, it is expected to go up by 0.25 by September
and another 0.25 by December, and this is seen to continue increasing in 2016.
Now for the good news! This weakness were seeing in the market is only
temporary. Our long-term outlook of the stock market remains attractive based on
these points:

l The Philippines has one of the best fundamental long-term stories in


the world today.
l The Philippines has one of the fastest GDP growth globally with 6.5
percent seen this year, 6.5 percent estimated for next year, and 6.3 percent
estimated for 2017.
l For comparisons sake, estimated GDP of other countries from 2015-2017:

World GDP 2.83.3 percent


High income economies 22.4 percent
Developing economies 4.45.4 percent
Thailand 3.54 percent
Indonesia 4.75.5 percent
l Our country is less dependent on exports as gross exports only contribute 22 percent of GDP.

l We have a strong current account position (dollars that come in less dollars that come

out). The ideal scenario is for a country to have more dollars than it needs to pay off. This
strength in current account position minimizes the threat of a sharp hike and significant peso
weakness. This strong current account position at 4.4 percent is driven by:
Healthy OFW remittances with +5.4 percent January to May
Continuous growth of BPO revenues with +18.7 percent in 2014 and +12.2 percent
projected this 2015.
l Government finances remain healthy with Budget to GDP only 1.1 percent and Government to GDP

at 45 percent. The governments concern is not the ability to spend but rather the deployment.
l Government spending is picking up after a slow start this year with Growth in Government

Expenditures and Capital Outlay increase by 9.2 percent and 28.5 percent respectively last
May.
l Investment spending is also picking up along with high capacity utilization of the manufacturing

sector. This justifies more future investments for expansion from companies.
l There is growing pipeline of PPP projects with $12.1 billion worth of projects in the bidding

stage, and this will boost economic growth and increase productivity.
l Liquidity conditions remain to be favorable for stocks, making stocks the asset of choice for
investors.
l Less risk of contagion from a Greek default (which did not take place)
l No signs of a bear market

Ill discuss more in detail the other good news in our next Stocks Update issue. I hope these market briefing

Stocks Update Volume 6, No. 16 August 2015 Page 3 of 10


notes gives a good picture of how our market is doing and where it is headed for the long-term.

Happy investing!

P.S. If you would like to hear me live, I conduct free seminars every Friday at the COL Financial Training
Center teaching the basics of long-term investing in the Stock Market. You may sign-up for these seminars
at www.colfinancial.com.

I also give powerful talks on various engaging and practical topics every Sunday at Feast ATC in Cinema
2 of Alabang Town Center. The Mass starts at 9AM and The Feast kicks-off at 10M. Come by. Its for free!

Here are our SAM Tables (as of August 19, 2015 closing).

STOCK Current Price Buy Below Price Target Price Action to Take
AC 771.00 762.60 877.00 Stop buying
CEB 90.30 124.80 156.00 Continue Buying
EEI 9.15 10.00 12.50 Stop buying for now
FGEN 24.40 28.56 35.70 Continue Buying
FLI 1.93 1.94 2.42 Continue Buying
GTCAP 1,290.00 1,278.26 1470.00 Stop Buying
MBT 84.90 88.70 102.00 Stop buying for now
MEG 4.35 4.54 5.67 Continue Buying
MER 291.40 239.20 299.00 Stop Buying for now
SMPH 20.00 22.00 25.30 Continue Buying
URC 192.00 198.26 228.00 Stop Buying for now

*Stop buying for now as advised by Bro. Bo

Stocks Update Volume 6, No. 16 August 2015 Page 4 of 10


STOCK DATE PRICE PRICE ESTIMATED BUY BELOW TARGET EXPECTED
SYMBOL BOUGHT BOUGHT TODAY RETURN PRICE PRICE GROWTH

AC Jul-13 603.50 794.00 31.57% 654.80 753.00 24.77%


Aug-13 598.50 794.00 32.66% 602.40 753.00 25.81%
Sep-13 580.00 794.00 36.90% 602.40 753.00 29.83%
Oct-13 601.50 794.00 32.00% 602.40 753.00 25.19%
Nov-13 569.50 794.00 39.42% 602.40 753.00 32.22%
Dec-13 555.00 794.00 43.06% 602.40 753.00 35.68%
Jan-14 525.00 794.00 51.24% 599.13 689.00 31.24%
Feb-14 538.50 794.00 47.45% 599.13 689.00 27.95%
Mar-14 574.00 794.00 38.33% 599.13 689.00 20.03%
Apr-14 590.00 794.00 34.58% 599.13 689.00 16.78%
Aug-14 704.00 794.00 12.78% 709.00 816.00 15.91%
Oct-14 688.00 794.00 15.41% 709.00 816.00 18.60%
Nov-14 690.00 794.00 15.07% 709.00 816.00 18.26%
Dec-14 689.00 794.00 15.24% 709.00 816.00 18.43%
Feb-15 730.00 794.00 8.77% 743.48 855.00 17.12%
Mar-15 732.00 794.00 8.47% 743.48 855.00 16.80%
Apr-15 800.00 794.00 -0.75% 762.61 877.00 9.63%
Jun-15 772.50 794.00 2.78% 762.61 877.00 13.53%
TOTAL 25.83%
CEB Nov-14 76.70 90.30 17.73% 78.26 90.00 17.34%
Dec-14 85.00 90.30 6.24% 130.43 150.00 76.47%
Jan-15 94.70 90.30 -4.65% 124.80 156.00 64.73%
Feb-15 92.30 90.30 -2.17% 124.80 156.00 69.01%
Mar-15 88.50 90.30 2.03% 124.80 156.00 76.27%
Apr-15 84.40 90.30 6.99% 124.80 156.00 84.83%
May-15 84.30 90.30 7.12% 124.80 156.00 85.05%
Jun-15 83.65 90.30 7.95% 124.80 156.00 86.49%
Jul-15 90.40 90.30 -0.11% 124.80 156.00 72.57%
Aug-15 97.00 90.30 -6.91% 124.80 156.00 60.82%
TOTAL 3.42%

Legend: n Continue Buying n Stop Buying

Stocks Update Volume 6, No. 16 August 2015 Page 5 of 10


STOCK DATE PRICE PRICE ESTIMATED BUY BELOW TARGET EXPECTED
SYMBOL BOUGHT BOUGHT TODAY RETURN PRICE PRICE GROWTH

EEI Oct-13 9.57 9.15 -4.39% 10.40 13.00 35.84%


Nov-13 9.88 9.15 -7.39% 10.40 13.00 31.58%
Dec-13 9.70 9.15 -5.67% 10.40 13.00 34.02%
Jan-14 10.04 9.15 -8.86% 11.04 12.70 26.49%
Feb-14 10.00 9.15 -8.50% 11.04 12.70 27.00%
Mar-14 11.00 9.15 -16.82% 11.04 12.70 15.45%
Jun-14 10.62 9.15 -13.84% 11.04 12.70 19.59%
Jul-14 11.00 9.15 -16.82% 11.30 13.00 18.18%
Aug-14 11.24 9.15 -18.59% 11.30 13.00 15.66%
Oct-14 11.10 9.15 -17.57% 11.30 13.00 17.12%
Nov-14 11.18 9.15 -18.16% 11.30 13.00 16.28%
Dec-14 10.70 9.15 -14.49% 11.91 13.70 28.04%
Jan-15 10.80 9.15 -15.28% 11.91 13.70 26.85%
Feb-15 9.99 9.15 -8.41% 10.00 12.50 25.13%
TOTAL -12.48%
FGEN Feb-15 29.00 24.40 -15.86% 32.43 37.30 28.62%
Mar-15 30.50 24.40 -20.00% 32.43 37.30 22.30%
Apr-15 29.40 24.40 -17.01% 31.30 36.00 22.45%
May-15 27.55 24.40 -11.43% 31.30 36.00 30.67%
Jun-15 25.30 24.40 -3.56% 28.80 36.00 42.29%
Jul-15 26.00 24.40 -6.15% 28.80 36.00 38.46%
Aug-15 26.75 24.40 -8.79% 28.56 35.70 33.46%
TOTAL -11.83%
FLI Jun-15 1.84 2.00 8.70% 1.94 2.42 31.52%
Aug-15 1.93 1.93 0.00% 1.94 2.42 25.39%
TOTAL 4.35%

Legend: n Continue Buying n Stop Buying

Stocks Update Volume 6, No. 16 August 2015 Page 6 of 10


STOCK DATE PRICE PRICE ESTIMATED BUY BELOW TARGET EXPECTED
SYMBOL BOUGHT BOUGHT TODAY RETURN PRICE PRICE GROWTH

MBT Jun-11 50.06 93.25 86.26% 78.88 93.60 86.96%


Jul-11 55.69 93.25 67.46% 78.88 93.60 68.09%
Aug-11 52.85 93.25 76.44% 78.88 93.60 77.11%
Sep-11 50.40 93.25 85.02% 78.88 93.60 85.71%
Oct-11 48.34 93.25 92.92% 78.88 93.60 93.65%
Nov-11 50.33 93.25 85.28% 78.88 93.60 85.97%
Dec-11 47.60 93.25 95.90% 78.88 93.60 96.64%
Jan-12 49.42 93.25 88.69% 83.07 108.00 118.54%
Feb-12 55.23 93.25 68.84% 83.07 108.00 95.55%
Mar-12 61.60 93.25 51.38% 93.91 108.00 75.32%
Apr-12 60.20 93.25 54.90% 93.91 108.00 79.40%
May-12 62.13 93.25 50.10% 93.91 108.00 73.84%
Jun-12 60.55 93.25 54.00% 93.91 108.00 78.36%
Sep-12 65.38 93.25 42.63% 93.91 108.00 65.19%
Oct-12 65.10 93.25 43.24% 104.35 120.00 84.33%
Nov-12 67.24 93.25 38.69% 104.35 120.00 78.48%
Jan-13 72.38 93.25 28.83% 113.04 130.00 79.61%
Feb-13 78.75 93.25 18.41% 129.57 149.00 89.21%
Mar-13 81.90 93.25 13.86% 129.57 149.00 81.93%
Apr-13 82.81 93.25 12.61% 129.57 149.00 79.93%
Jun-13 84.70 93.25 10.09% 129.57 149.00 75.91%
Jul-13 78.89 93.25 18.20% 129.57 149.00 88.87%
Aug-13 77.00 93.25 21.10% 119.20 149.00 93.51%
Sep-13 84.65 93.25 10.16% 91.68 114.60 35.38%
Oct-13 86.95 93.25 7.25% 91.68 114.60 31.80%
Nov-13 80.55 93.25 15.77% 91.68 114.60 42.27%
Dec-13 73.20 93.25 27.39% 91.68 114.60 56.56%
Jan-14 73.75 93.25 26.44% 86.96 100.00 35.59%
Feb-14 79.55 93.25 17.22% 86.96 100.00 25.71%
Mar-14 81.40 93.25 14.56% 86.96 100.00 22.85%
Apr-14 79.70 93.25 17.00% 86.00 100.00 25.47%
May-14 83.50 93.25 11.68% 86.00 100.00 19.76%
Jun-14 85.15 93.25 9.51% 86.00 100.00 17.44%
Aug-14 85.75 93.25 8.75% 96.50 111.00 29.45%
Sep-14 88.00 93.25 5.97% 96.50 111.00 26.14%
Oct-14 83.65 93.25 11.48% 96.50 111.00 32.70%
Nov-14 82.50 93.25 13.03% 96.50 111.00 34.55%
Dec-14 82.95 93.25 12.42% 92.17 106.00 27.79%
Jan-15 88.00 93.25 5.97% 92.17 106.00 20.45%
Feb-15 94.75 93.25 -1.58% 97.39 112.00 18.21%
Jun-15 87.55 93.25 6.51% 94.78 109.00 24.50%
TOTAL 34.74%

Legend: n Continue Buying n Stop Buying

Stocks Update Volume 6, No. 16 August 2015 Page 7 of 10


STOCK DATE PRICE PRICE ESTIMATED BUY BELOW TARGET EXPECTED
SYMBOL BOUGHT BOUGHT TODAY RETURN PRICE PRICE GROWTH
MEG May-13 4.23 4.85 14.66% 4.16 4.78 13.00%
Jun-13 3.67 4.85 32.15% 4.16 4.78 30.25%
Jul-13 3.15 4.85 53.97% 4.16 4.78 51.75%
Aug-13 3.40 4.85 42.65% 3.89 4.87 43.24%
Sep-13 3.21 4.85 51.09% 3.89 4.87 51.71%
Oct-13 3.64 4.85 33.24% 3.89 4.87 33.79%
Nov-13 3.58 4.85 35.47% 3.89 4.87 36.03%
Dec-13 3.23 4.85 50.15% 3.89 4.87 50.77%
Jan-14 3.36 4.85 44.35% 3.95 4.54 35.12%
Feb-14 3.78 4.85 28.31% 4.70 5.48 44.97%
Apr-14 4.43 4.85 9.48% 4.70 5.48 23.70%
May-14 4.65 4.85 4.30% 4.70 5.48 17.85%
Jun-14 4.51 4.85 7.54% 4.70 5.48 21.51%
Jul-14 4.47 4.85 8.50% 4.70 5.48 22.60%
Aug-14 4.26 4.85 13.85% 4.58 5.73 34.51%
Sep-14 4.30 4.85 12.79% 4.98 5.73 33.26%
Feb-15 5.09 4.85 -4.72% 5.10 5.86 15.13%
Jun-15 4.71 4.85 2.97% 4.69 5.86 24.42%
TOTAL 24.49%
MER Sep-14 258.00 291.00 12.79% 284.00 355.00 37.60%
Oct-14 260.00 291.00 11.92% 284.00 355.00 36.54%
Nov-14 262.00 291.00 11.07% 284.00 355.00 35.50%
Dec-14 261.80 291.00 11.15% 308.70 355.00 35.60%
Jan-15 261.80 291.00 11.15% 308.70 355.00 35.60%
Feb-15 271.40 291.00 7.22% 308.70 355.00 30.80%
Mar-15 275.00 291.00 5.82% 308.70 355.00 29.09%
Apr-15 263.80 291.00 10.31% 308.70 355.00 34.57%
May-15 279.80 291.00 4.00% 239.20 299.00 6.86%
TOTAL 9.49%

Legend: n Continue Buying n Stop Buying

Stocks Update Volume 6, No. 16 August 2015 Page 8 of 10


STOCK DATE PRICE PRICE ESTIMATED BUY BELOW TARGET EXPECTED
SYMBOL BOUGHT BOUGHT TODAY RETURN PRICE PRICE GROWTH

SMPH Oct-13 16.90 22.00 30.18% 17.20 21.50 27.22%


Nov-13 16.40 22.00 34.15% 17.20 21.50 31.10%
Dec-13 15.10 22.00 45.70% 17.20 21.50 42.38%
Jan-14 14.68 22.00 49.86% 16.73 19.41 32.22%
Feb-14 14.70 22.00 49.66% 16.73 19.41 32.04%
Mar-14 14.90 22.00 47.65% 16.73 19.41 30.27%
Apr-14 14.90 22.00 47.65% 16.80 19.41 30.27%
May-14 16.34 22.00 34.64% 16.80 19.41 18.79%
Jun-14 16.18 22.00 35.97% 16.80 19.41 19.96%
Jul-14 16.52 22.00 33.17% 16.80 19.41 17.49%
Aug-14 15.40 22.00 42.86% 17.60 20.30 31.82%
Sep-14 16.64 22.00 32.21% 17.60 20.30 22.00%
Oct-14 16.50 22.00 33.33% 17.60 20.30 23.03%
Nov-14 17.48 22.00 25.86% 17.60 20.30 16.13%
Dec-14 16.98 22.00 29.56% 17.60 20.30 19.55%
Jan-15 17.44 22.00 26.15% 17.60 20.30 16.40%
Feb-15 18.92 22.00 16.28% 20.52 23.60 24.74%
Mar-15 19.66 22.00 11.90% 20.52 23.60 20.04%
Apr-15 20.45 22.00 7.58% 20.52 23.60 15.40%
May-15 19.64 22.00 12.02% 20.52 23.60 20.16%
Jun-15 18.90 22.00 16.40% 20.52 23.60 24.87%
Aug-15 20.00 20.00 0.00% 22.00 25.30 26.50%
TOTAL 30.13%
URC Jun-15 180.00 200.00 11.11% 200.00 230.00 27.78%
TOTAL 11.11%

Legend: n Continue Buying n Stop Buying

Mike Vias is an Investment Trainer of COL Financial Group, Inc. He is a Certified Securities Representative
and Certified Investment Solicitor.

Stocks Update Volume 6, No. 16 August 2015 Page 9 of 10


2014 Top 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 2014 Table however integrates a cost-averaging method throughout the months it was under the
Buy-Below.

ESTIMATED
STOCK TIME PRICE ESTIMATED
STOCKS TIME
SYMBOL RECOMMENDED RANGE RETURN
HELD

D&L Industries DNL February 2013 to April 2014 14 Months P6.45 to P10.00 44%

PLDT TEL June 2013 to April 2014 10 Months P2,902.00 to P3,260.00 16%

Banco De Oro BDO April 2013 to August 2014 16 Months P89.60 to P93.00 24%

Top Past Winners of TrulyRichClubs Stocks


STOCK TIME ESTIMATED PRICE ESTIMATED
STOCKS
SYMBOL RECOMMENDED TIME HELD RANGE RETURN

June 2011 to February 2012


Ayala Land ALI 9 Months P15.09 to P21.65 35%
(3rd week)

February 2012 to March


Nickel Asia NIKL 2 Months P23.75 to P26.20 10.32%
2012 (3rd week)

Bank of The February 2012 to November


BPI 10 Months P68.45 to P91.00 34.29%
Philippine Islands 2012 (4th week)

October 2012 to December


Ayala Corporation AC 2 Months P440.00 to P520.00 17.65%
2012 (2nd week)
February 2012 to December
SM Prime Holdings SMPH 10 Months P12.48 to P17.00 27.75%
2012 (1st week)
January 2013 to February
Alliance Global AGI 1 Month P17.54 to P20.50 16.88%
2013

Meralco MER January 2013 to April 2013 3 Months P268.00 to P377.00 28.05%

First Phlippine
FPH June 2011 to June 2013 25 Months P63.18 to P95.20 32.92%
Holdings
JG Summit Holdings JGS February 12 to October 2013 18 Months P25.75 to P43.50 39.96%
D&L Industries DNL February 2013 to April 2014 14 Months P6.45 to P10.00 44%

P2,902.00 to
PLDT TEL June 2013 to April 2014 10 Months 16%
P3,260.00

Banco De Oro BDO April 2013 to August 2014 16 Months P89.60 to P93.00 24%

(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 Volume 6, No. 16 August 2015 Page 10 of 10