hxSRoM3FI6iR4DIkdlU6Vqb2SdY The Gabble Mouth: October 2012

Tuesday, October 30, 2012

Halloween in the Philippines


The Halloween season is regarded as the season for supernatural and ghost stories. Durign this week, Filipinos share stories of ghosts, hauntings and supernatural beings. Television shows also feature similar material during this time.


The Filipino version of trick-treat is pangangaluluwa, where young people dessed in white or drpped in white sheets go from house to house begging for food or money either in the evening or in early morning. In earlier decades, they would also steal items from the yard such as eggs, chickens or even livestock – the only day in the year when it was tolerated. This practice, however, ahs now all but died out.

 

Halloween is not a festival native to the Philippines but is a recent adaptation from American culture, and is usually celebrated in urban areas during the last week of October by throwing Halloween costumes parties. Filipinos in rural areas, however, prefer to observe the more traditional All Saints Day or Undas on the first two days of November. Because of the similarities between the two festivals, Halloween and Undas have come to be linked, and even viewed by some as one of celebration.


Friday, October 26, 2012

I Clique with Sulit

Sulit Clique: Sulit.com.ph Bloggers Event

Last Wednesday October 24, 2012 Sulit.com.ph held its first ever bloggers event in Spicy Finger at Greenbelt 2 Makati.

The event was attended by 15 different bloggers who joined the bloggers hunt;

Iris Camille Mejia : www.Pinayads.com
Alvin Chua : www.cheftonio.com
Kc Canlas : www.spreadsomeawesome.com
Mino Giacomo Marimat : www.minomarimat.blogspot.com
Mark Chino Pantua : www.juanderfulpinoy.com
Kristen Joy Silag : www.whereinmanila.com
Jeffrey Sy : www.boy-kuripot.com
Cha Sy : www.travel-on-a-shoe-string.blogspot.com
Eduard : www.eduarreformina.com
Christian Melanie Sy : www.eccentricyethappy.com
JM Cruz : www.imbamanila.com
Gen Garcia : www.glamgen22.blogspot.com
Maui Flores : www.the24hourmommy.com
Francis Mirador : www.thegabblemouth,blogspot.com

The purpose of the event is to build strong relationship with bloggers and introduced what sulit.com.ph is all about.

Ms. MeAnne Bundalian- Marketing Supervisor of sulit.com.ph said;

"The company has an aggressive campaign and we have established our marketing campaign through online, radio and television and i think we are missing a big part of this marketing mixed because it is very influential in the internet industry here in the Philippines, i am referring to the bloggers.

Sulit Clique is actually our first event exclusively for bloggers.

Sulit Clique you would always see in our future communication with you. We aim to have exclusive network of bloggers that we could port our will. This is our way of knowing you more and look for you guys to know sulit.com.ph better."

Here are some photo taken during the event.

Thursday, October 18, 2012

Miss International 2012 Live Streaming




Miss International 2012, the 52nd edition of the Miss International pageant will be held at OkinawaJapan on October 21, 2012. Fernanda Cornejo  from Ecuador .




will Miss Philippines Nicole Schmitz bring home the Crown?


Who will Reign Supreme?

Who will be crown as  2012 Miss International?

THE FINAL!!!!
Livestream available from17:00-20:30 
(Japan Standard Time)

4:30pm
(Philippine Local Time)
Sunday, October 21 2012  

Watch it here Live!!



Tuesday, October 16, 2012

The NEW BOSS; Moshi Koshi Noodle

The NEW BOSS is here, Moshi Koshi Noodle Boss.


We went to market2 last weekend and we notice a newly opened restaurant "nagdadalawang isip pa ako kung papasok at kakain ba kami, kasi we dont know kung masarap ung food eh. 

And Guess what? the food is really masarap, the KATSUDON and BEEF CURRY WOW!!! First time to eat sa restaurant na to and we really enjoy the food sooooooooooooooooooooo.... much.... Babalik at babalik ako dito.Will definitely recommend this to everyone to family, friends and colleagues. You will surely love their food!!! Hindi ka mapapahiya kung irerecommend sa ibang tao... Try it and experience their food now!!!

Visit Moshi Koshi Store Now!


 
Ground Floor, McKinley Parkway 
Market! Market!
Bonifacio Global City, Taguig, Metro Manila
(in front of One Serendra)
T. +632 816-6744
T. +632 621-9853

Visit and Like Moshi Koshi Noddle Boss facebook fan page;
https://www.facebook.com/pages/Moshi-Koshi-Noodle-Boss/256451784405533?fref=ts

You may also visit their official website;
http://moshi-koshi.com/

My story: Struggling, bullying, suicide, self harm



I'm struggling to stay in this world, because everything just touches me so deeply. I'm not doing this for attention. I'm doing this to be an inspiration and to show that I can be strong. I did things to myself to make pain go away, because I'd rather hurt myself then someone else. Haters are haters but please don't hate, although im sure I'll get them. I hope I can show you guys that everyone has a story, and everyones future will be bright one day, you just gotta pull through. I'm still here aren't I ?

-AmandaTodd

Weeks after posting this video in youtube, 13 year-old Amanda Todd committed suicide. She was a victim of internet and school bullying. Nobody deserves this. 

Share this video to send an important message to those who are being bullied. "Don't ever give up..." And may this serve as a warning to bullies, "What goes around, comes around.."

RIP Amanda, may you finally find eternal peace! October 10, 2012.

Monday, October 15, 2012

The Most Ridiculous Excuses For Calling In Sick


Mischievous teenagers aren’t the only ones playing hooky. According to a new CareerBuilder survey, 30% of professional adults called in sick when they weren’t actually ill at least once this year. But instead of simply telling their managers, “I can’t make it in today because I’m not feeling well,” they offered much more colorful excuses.
One employee said he couldn’t make it to work because his toe was stuck in a faucet, and another said a bird bit her. One worker said her dog was having a nervous breakdown, while another claimed he got sick from reading too much. And those aren’t even the most preposterous on
Every time we think we’ve seen it all, the next year’s survey always brings in the unexpected,” says Rosemary Haefner, vice president of human resources at the jobs website CareerBuilder.
CareerBuilder does an annual survey on absenteeism, and this year the poll reached out to 3,976 workers and 2,494 employers. It found that not all sick days are spent under piles of blankets, with a thermometer and extra-strength meds. Next to actually feeling under the weather, the most common reasons employees skip work are: They just don’t feel like going (34%); they felt like they needed to relax (29%); they had a doctor’s appointment (22%); they wanted to catch up on sleep (16%); or they had errands to do (15%).
The survey also asked hiring managers and HR personnel to report the most outlandish excuses they heard from employees this year, and a panel sifted through the 2,000 submissions to find the 10 most unusual ones.
For instance, one employee claimed he couldn’t make it to work because he forgot he had been hired for the job. Another worker said she’d be out for the day because her dead grandmother was being exhumed for a police investigation. These may or may not be true—but either way, excuses like these are almost guaranteed to raise suspicion.
“It’s better to be honest.  Keep it short and simple, and only provide the information that is needed,” Haefner says. “If you’re caught lying, it can have more serious consequences and can bring your professionalism and reliability into question.”
It turns out 29% of employers have checked up on an employee by requiring a doctor’s note or calling the employee later in the day. Some have had other employees call a suspected fibber (18%) or had them drive by the ‘sick’ employee’s home (14%).
As an employer, you don’t want to pry into the employee’s personal life, but in some cases you may need more explanation as to why he or she can’t be at work that day,” Haefner says. “If you are taking measures to try to catch an employee, then there clearly is a bigger trust issue at hand.  If you don’t trust your employees, it can be difficult to establish a productive and mutually supportive work environment.”
So beware: Just because you’ve come up with a creative excuse doesn’t mean you’re in the clear. No fewer than 17% of employers say they’ve fired a worker for giving a phony excuse.

-Referrence: Forbes.com

Friday, October 12, 2012

MARIJUANA BROWNIES


Philippines – Seventeen hospital workers fell ill after eating marijuana-laced brownies last week, prompting the Philippine Drug Enforcement Agency (PDEA) to issue a stern warning to the public to exercise caution in buying or accepting pastries from anonymous persons.

A nurse in a provincial hospital in San Marcelino, Zambales received three boxes of baked brownies from an anonymous person as birthday present last week, unaware of the presence of marijuana in the ingredients.
She shared the unexpected gift from her co-workers, all 16 of them. Within hours, they felt dizziness and pain and were given immediate medical attention.
PDEA Director General Undersecretary Jose S. Gutierrez Jr., who received the report, said laboratory examination of the brownies yielded positive result for the presence of marijuana.
The specimen was confirmed to contain extracted marijuana leaves purposely mixed as ingredients in baking the brownies.
“Eating marijuana-spiked brownies or pastries presents major health risks, and the continuous consumption of these has the potential to be addictive to unsuspecting consumers,“ Gutierrez said, adding that marijuana is considered to be a gateway drug and its users have a strong inclination to move on to muchharder drugs later on.
“Thus, we are sending out this stern warning to the public not to accept any box of goodies/pastries from anonymous persons because it may contain illegal drugs. PDEA is presently intensifying its intelligence gathering to arrest unscrupulous elements using this method of drug-pushing,“ said Gutierrez.
Meanwhile, a mother and son tandem has been arrested by the Philippine Drug Enforcement Agency (PDEA) for maintaining a drug den in Cagayan de Oro City.
Gutierrez said the house, located in Bantilis, Barangay Bugo, Cagayan de Oro City, is being utilized as a drug den owned and operated by Annabelle Pepito, 42; and her 23-year-old son, Klerby Adrian Jay.
Elements of PDEA Regional Office 10 (PDEA RO10) Misamis Oriental Provincial Special Enforcement Team, under Director Roberto Opeña, arrested the Pepitos on Oct. 9.
During the operation, six persons were caught in a pot session. They were identified as Julbert Ucat, 32; Bobby Dela Torre, 29; Charles Dacup, 34; Jorum Dadivalos, 39; Josephine Villaraza, 22; and Karen Cardova, 26.
The PDEA operatives recovered one aluminum foil strip containing shabu, one tea bag of marijuana dried leaves wrapped in a paper, and various drug paraphernalia.
The Pepitos are facing charges for violation of Section 6 (Maintenance of a Drug Den), Article II, of Republic Act 9165, or the Comprehensive Dangerous Drugs Act of 2002.
On the other hand, Ucat, Dela Torre, Dacup, Dadivalos, Villaraza and Cardova were charged for visiting the drug den (Section 7), possession of dangerous drugs during gatherings (Section 13) and possession of drug paraphernalia during gatherings (Section 14).
They are presently detained in the PDEA RO10 jail facility.

-Tempo

Samsung unveils smaller, cheaper Galaxy S III


Samsung Electronics Co. has unveiled a smaller and cheaper version of the Galaxy S III smartphone with the same screen size as the iPhone 5.
Samsung says the Galaxy S III mini features a screen measuring 4 inches diagonally, smaller than the Galaxy S III's 4.8 inch display but the same as Apple's iPhone 5, which was Apple's first upgrade of the iPhone screen size.
Samsung said the mini will be launched in Europe later this month but kept mum on schedules for other countries.
Samsung's German mobile shop lists the mini's price at 399 euros ($516) versus 550 euros ($711) for the cheapest S III.
The mini is powered by the latest version of Android software but does not support faster fourth-generation wireless networks.

A diamond bigger than Earth?


Forget the diamond as big as the Ritz. This one's bigger than planet Earth.
Orbiting a star that is visible to the naked eye, astronomers have discovered a planet twice the size of our own made largely out of diamond.
The rocky planet, called '55 Cancri e', orbits a sun-like star in the constellation of Cancer and is moving so fast that a year there lasts a mere 18 hours.
Discovered by a U.S.-Franco research team, its radius is twice that of Earth's with a mass eight times greater. That would give it the same density as Earth, although previously observed diamond planets are reckoned to be a lot more dense. It is also incredibly hot, with temperatures on its surface reaching 3,900 degrees Fahrenheit (1,648 Celsius).
"The surface of this planet is likely covered in graphite and diamond rather than water and granite," said Nikku Madhusudhan, the Yale researcher whose findings are due to be published in the journal Astrophysical Journal Letters.
The study - with Olivier Mousis at the Institut de Recherche en Astrophysique et Planetologie in Toulouse, France - estimates that at least a third of the planet's mass, the equivalent of about three Earth masses, could be diamond.
Diamond planets have been spotted before but this is the first time one has been seen orbiting a sun-like star and studied in such detail.
"This is our first glimpse of a rocky world with a fundamentally different chemistry from Earth," Madhusudhan said, adding that the discovery of the carbon-rich planet meant distant rocky planets could no longer be assumed to have chemical constituents, interiors, atmospheres, or biologies similar to Earth.
David Spergel, an astronomer at Princeton University, said it was relatively simple to work out the basic structure and history of a star once you know its mass and age.
"Planets are much more complex. This 'diamond-rich super-Earth' is likely just one example of the rich sets of discoveries that await us as we begin to explore planets around nearby stars."
"Nearby" is a relative concept in astronomy. Any fortune-hunter not dissuaded by "The Diamond as Big as the Ritz", F.Scott Fitzgerald's jazz age morality tale of thwarted greed, will find Cancri e about 40 light years, or 230 trillion miles, from Park Avenue.
- Reuters

Ten brands that lost the most value


Once again, Coca-Cola was ranked the most valuable brand in the world, according to Interbrand, one of the nation's top global brands experts. Apple, to the surprise of none, was very close behind.
Considering the consumer electronics company's growth, it will easily eclipse the long-time number No. 1 by next year.
While some of the biggest brands — including Amazon.com (AMZN), Samsung and Oracle (ORCL) -– have grown their value by more than 20% since last year's report, others have fallen precipitously.
Goldman Sachs, still one of the world's most valuable financial brands, lost 16% of its brand's worth. BlackBerry lost nearly 40% of its brand's value. Based on the Interbrand report, 24/7 Wall St. reviewed Goldman, BlackBerry and eight other brands that lost the most value compared to last year.
Several industries have grown substantially in the past year. Auto companies, still recovering from the recession, saw major gains in their brand value since the last report. Nine of the 11 large European, Japanese and American automakers on 100 most valuable brands list grew in value last year, up a combined 12%.
Together, technology firms measured by Interbrand, led by Apple's stunning 129% brand value growth, have grown by nearly 27% to more than $320 billion in total value. However, the performance of brands within the technology sector has been much more mixed than the auto industry.
While Apple and Samsung are among the most improved brands compared to last year, the sector also has some that are the worst-performing, which is no coincidence. As Apple and Samsung have redefined the mobile phone market, brands like BlackBerry and Nokia are being left behind.
Brands are successful when they are able to redefine a market, Interbrand CEO, New York, Josh Feldman told 24/7 Wall St. He cites Apple, which took the mobile phone market and turned it into an ecosystem in which consumers buy games, listen to music and browse the Internet on a single device.
When comparing brands that are doing well to struggling brands, Feldman said, the improving brands have been able to predict what consumers want. "Strong brands anticipate needs and transform desires," Feldman said.
Some sectors are struggling across the board, arguably none more so than financial services. In Interbrand's 2008 report, the combined brand value of the financial services industry was more than $130 billion. As of the 2012, brand value had fallen to just over $91 billion.
Damage to banks is partially a result of negative press generated from the recession, but also in part because they are performing poorly as a business.
Feldman explained that a large part of Interbrand's valuation comes from the performance of the company, and that has affected the Citigroup, J.P Morgan and some of the other large banks.
"If you can't make money with a brand, it's not really valuable," Feldman said.
24/7 Wall St. reviewed Interbrand's Top 100 GlobalBrands 2012 report that covers July 1, 2011, to June 30, 2012. Included in the valuation, using 24/7 Wall St. research, are the brand's strength, the parent company's financial success and the extent to which the brand plays a role in the company's success.
These are the brands that lost the most value over the past year:
10. Dell, 9% decline

--Brand value: $7.6 billion (49th), lowest in 11 years
--Parent company: Dell (DELL)
--Year-over-year revenue change: -2.36%
--Industry: Technology
Dell's brand has consistently lost value the past four years as the company has moved away from PC sales toward IT services, a strategy Hewlett-Packard (HPQ) also attempted with limited success.
Although Dell remains one of the world's largest PC makers, this year's second-quarter PC shipments declined by 11.5% from a year before. The company also has struggled to create a viable smartphone, and it stopped selling the devices in the U.S. in March.
Despite recent problems, Dell's last annual report indicated that in fiscal 2012 "enterprise
solutions and services business, a bellwether for execution of [the company's] strategy, grew 6% to $18.6 billion, and was nearly 30% of revenue and almost half of gross margin dollars."
9. Thomson Reuters, an 11% decline

--Brand value: $8.4 billion (44th)
--Parent company: Thomson Reuters (TRI)
--Year-over-year revenue change: 1.5%
--Industry: Business services
While Thomson Reuters used to be the dominant player in the financial terminal market, competitor Bloomberg has gained market share in recent years and has become the terminal to have on Wall St.
Burton-Taylor International Consulting managing partner Douglas Taylor told Canadian Business in February that Bloomberg's market share has finally caught up with that of Thomson Reuters, with each holding about a third.
"It's perceived as the Mercedes product," Taylor said of the Bloomberg terminal. "If you have a Bloomberg, you have the ultimate terminal."
The struggle to fend off challenges from Bloomberg and others led the Thomson family, the company's controlling shareholders, to remove Tom Glocer as CEO in December.
But despite the company allowing the competition to gain on it, Interbrand notes that Thomson Reuters continues to lead its respective market in other key areas, such as legal research databases for law firms and the Checkpoint database for tax and accounting professionals.
8. Honda, an 11% decline (tied for 9th)

--Brand value: $17.3 billion (21st)
--Parent company: Honda Motor (HMC)
--Year-over-year revenue change: 4.6%
--Industry: Automotive
The brand valuation of the worldwide automotive industry has begun to recover after a major dip during the recession, rising from to more than $160 billion in 2012 from about $128 billion in 2010.
The total value of all top car brands Interbrand measures increased since the 2011 report, except for Honda and Kia. Honda's brand value in 2012 of $17.3 billion — which is $13 billion less than its Japanese rival Toyota Motor (NYSE:TM) brand — is the lowest since 2006.
Some events that impacted the company were beyond its control, including the Japanese earthquake, which affected its manufacturing, and floods in Thailand that hurt some suppliers. The automaker, though, is responsible to some of the damage to its brand. Honda has issued multiple major recalls in recent years, including one for more than 570,000 Honda-branded vehicles in early October.
7. MTV, 12% drop

--Brand value: $5.6 billion (67th)
--Parent company: Viacom (VIAB)
--Year-over-year revenue change: 9.7%
--Industry: Media
Does the 'M' really belong in MTV anymore? Interbrand notes that MTV continues to steer further away from its musical roots and experiment in low-cost content, leading to an "identity crisis."
The agency added, "MTV would do well to push the boundaries and recapture some of its lost edge — the very thing that made it a household name more than 30 years ago."
Even some of its staple programming is hitting turbulence. "Jersey Shore," which became the most popular show in the history of MTV, started declining in the ratings in the beginning in
2011. The show ends after Season 6, which premiered Oct. 4.
Meanwhile, the ratings for the MTV Movie Awards in June were down 29% from a year ago.
6. Citi, 12% decline (tied for 7th)

--Brand value: $7.6 billion (50th)
--Parent company: Citigroup (C)
--Year-over-year revenue change: -5.2%
--Industry: Financial services
After five years of consecutive decline, Citi's brand value in 2012 is less than a third of its all-time high of $23.4 billion. By comparison, the brand value of JP Morgan Chase (JPM), another money center bank, has risen in two of the past three years.
During the last several years, multiple lawsuits have been filed against Citi for its role in the U.S. subprime mortgage crisis. A $45 billion bailout from the U.S. Treasury in 2008 and a failed Federal Reserve "stress test" — a test that evaluates a bank's ability to survive a stock or housing market
crash — also hurt the bank's reputation.
To help revitalize its brand, the bank secured an Olympic sponsorship and launched a major ad campaign to highlight its historic financial innovations. However, Interbrand's Josh Feldman told 24/7 Wall St. he did not believe Citi had a marketing problem, but that "evaluating banks on fundamentals is very much in play" in Citi's brand decline.
5. Yahoo!, 13% decline

--Brand value: $3.9 billion (97th)
--Parent company: Yahoo! (YHOO)
--Year-over-year revenue change: -10.6%
--Industry: Internet services
In the past year, news stories about Yahoo! have centered around the ouster of its chief executive and the dismissal of her replacement due to resume discrepancies. Although the company looks to have found a CEO who can last in Marissa Mayer, a change in Yahoo!'s fortunes will not come easily.
Over the past several years the company has increasingly lost its share of the display ad market to Google (GOOG) and Facebook (FB). EMarketer now predicts that Yahoo! will have 9.3% of the web's display ad revenue in 2012, below Google's 15.4% and Facebook's 14.4%.
In 2011, Yahoo!'s share of display ad revenue was 11%, down from 14% in 2010, when it brought in more display ad revenue than any other web property. Nevertheless, Mayer is looking to make Yahoo! into a more mobile company that can gain back revenue through smartphones and tablets.
4. Moet & Chandon, 13% decline (tied for 5th) 

--Brand value: $3.8 billion (98th)
--Parent company: LVMH Moet Hennessy Louis Vuitton
--Year-over-year revenue change:22.4%
--Industry: Distilled spirits
Part of French luxury conglomerate LVMH, Moët & Chandon's brand value declined by more than $500 million the past year. The brand lost value despite opening a boutique hotel in St. Tropez and launching celebrity-hosted tours worldwide.
To help restore brand value, Moët & Chandon signed a sponsorship contract with the America's Cup, one of the most well-known sailing races worldwide.
Interbrand's Josh Feldman told 24/7 Wall St.: "It's not that the Moët & Chandon brand is any weaker, it's that rituals are changing" as economic growth comes from parts of the world that do not yet associate champagne with celebration.
The brand also remained the best-selling champagne in the U.S. last year, with sales volume rising 1.3% to reach 410,000 cases, according to Shanken News Daily, a wine, spirits and beer industry news service.
3. Nokia, 16% decline

--Brand value: $21.0 billion (19th)
--Parent company: Nokia (NOK)
--Year-over-year revenue change: -20.5%
--Industry: Electronics
Nokia has had a rough year. After Nokia lost market share for several years, Samsung finally overtook it as the largest manufacturer of mobile devices in the first quarter of 2012.
The company's stock price has been cut by more than half in the past year, and the company announced in June that it was cutting 10,000 jobs to preserve cash.
Now the Finnish company is staking its hopes on the Microsoft (MSFT) Windows' mobile operating system. In September, the company previewed its Lumia 920 smartphone to investors, but they were not impressed.
"The challenge is that the world is working on the fourth, fifth and sixth editions of their devices, while Nokia is still trying to move from Chapter One," RBC analyst Mark Sue told Reuters following Nokia's presentation to investors. "It still has quite a bit to catch up."
But even Nokia's catchup efforts were hurt in April when early buyers of the Nokia Lumia 900 had problems connecting to the web.
2. Goldman Sachs, 16% decline (tied for 3rd)

--Brand value: $7.6 billion (48th)
--Parent company: Goldman Sachs Group (GS)
--Year-over-year revenue change: -23.2%
--Industry: Financial services
Goldman Sach's brand has taken a major hit since the financial crisis because of its involvement in the sale of complex collateralized debt obligations and in the Greek debt crisis. The company's practices returned to the spotlight this March when an executive director in the firm's London office publicly resigned in a scathing op-ed piece publishedThe New York Times.
Smith said, "The interests of the client continue to be sidelined in the way the firm operates and thinks about making money," and he noted that managing directors would often refer to clients over email as "muppets."
Revenue in the first half of 2012 was at its lowest level since 2005 due primarily to weak trading volume. The company responded by cutting pay by 14% during the first six months compared to the previous year and reducing its headcount.
1. BlackBerry, 39% decline
blackberry logo

--Brand value: $3.9 billion (93rd)
--Parent company: Research in Motion (RIMM)
--Year-over-year revenue change: -25.2%
--Industry: Electronics
The BlackBerry, built by Research In Motion, used to dominate the smartphone market, with loyal users often joking about their addiction to their "crackberry."
Yet blunders, such as a BlackBerry outage in late 2011, the failure of its Playbook tablet and the stiff competition from Apple's (AAPL) iPhone and Google's Android devices, have led to a rapid decline of BlackBerry's brand value.
BlackBerry's share of the smartphone operating platform market dropped from 21.7% in July 2011 to 9.5% just a year later, according to comScore. Meanwhile, Apple's market share went from 27% to 33.4% in that time, while Google's share went from 41.8% to 52.2%.
The parent company has seen its stock decline nearly 90% in the past three years. RIM announced in June that it would cut approximately 5,000 jobs out of about 16,500 employees, or around 30% of its workforce.
RIM is pinning its hopes on the BlackBerry 10, which will likely come out in early 2013.

Refference: USA Today

Video Teaser: 2012 Kapamilya Christmas Station ID


A brief teaser video of Kapamilya Network's Christmas Themed Station ID for 2012 has been released.


Here's the Video Teaser



The Full 2012 Christmas Station ID of ABS-CBN is expected to be released soon.

HOW TO INVEST IN THE PHILIPPINE STOCK MARKET


A Guide for Investors
Investors Primer III: Investing in the Philippines Stock Market




A share of stock is evidence of a fractional ownership in a corporation. Buying a share of common stock is in fact buying a share of a business. An individual who owns shares in, say, Petron or PLDT has an ownership interest in that company and is called a stockholder or shareholder. This ownership is also referred to as having equity in a company, hence, stocks are also called equities or equity securities. The percentage or proportion of ownership depends on how many of the company’s share one owns.

For example, 1,000 shares of common stock in a corporation that has 100,000 outstanding shares represent 1,000/100,000 ownership interest. This means you have one percent (1%) ownership interest I the company’s plant, its building, its inventories and other assets.


Ownership of a business is represented by stock certificates. When an individual becomes a stockholder of any corporation, he receives a stock certificate – a written evidence of ownership certified to the corporation. The certificate indicates the investor’s name, total number of shares purchased, the certificate number, the par value and the name of the issuing corporation.

When shares are purchased, the stock certificates will be issued either in street name or in the investor’s name. The difference is important to know since without notice form the investors all stock certificates will be issued in street name, i.e. in the name of the brokerage firm. In this way, the brokerage firm – and NOT the investor – will be the holder of the stock certificates. Only when the investor specifically asks for it will the stock certificates be issued in the investor’s name.
Stock certificates that are in the street name facilitate the transactions by brokers. When the investor decides to sell his shares, the street certificate simply be endorsed by the stockbroker. If it were in the investor’s name, the process would be lengthier since it is the investor who needs to endorse it at the back of the certificate. When shares are bought and sold frequently, it is advisable to have them issued in street name since it will facilitate the quick transfer of ownership.


There are different types of stocks that you can buy or sell at the Philippine Stock Exchange (PSE): common stock, preferred stock, cumulative preferred stock and convertible preferred stock. The difference depends on the right and privileges which you receive as a stockholder.

The majority of securities traded in the PSE are common stocks. Common stocks are usually purchased for participation in the profits and control of ownership and the management of the company – they have voting rights. Common stock holders are entitled to an equal pro rata division of profits without preference or advantage over another stockholder. However, they have the last claim on dividends and are the last to collect in case of liquidation. Common shares can be classified into class A and class B shares. Class A shares are reserved to Filipino investors, while Class B shares are open to foreign investors as well as Filipinos. Thus, Filipinos can own both classes while foreigners can only avail of Class B shares. Both classes have the same privileges and rights, and receive the same amount of dividends.

Preferred stocks are another type of securities issued by corporations. Its name is derived from the preference given to the holders of this stock over holders of common stocks. Holders of the preferred stocks are entitled to receive a fixed minimum amount of dividends (expressed either in pesos or as percentage of the stock’s par value), to the extent declared by the company’s Board and if there are sufficient retained earnings, before any dividends are paid to the holders of common stocks.

Cumulative preferred stocks are special preferred stocks that accumulate unpaid dividends for future payment. Cumulative preferred stock has prior rights to dividends over common stock; therefore the omitted cumulative preferred dividends must be paid before the common stock dividends can be paid. Convertible preferred stocks are preferred stocks which are exchangeable into common stocks at the option of the holder under specified terms and conditions. The conversion ratio specifies the number of shares the holder receives upon surrender while the conversion price is effective price paid for the common stock when conversion occurs.



      Warrants are another type of investment which you can buy or sell in the stock market. By definition, a warrant is a security which grants the holder the right but not the obligation to buy (in the case of a call warrant) or sell (in the case of a put warrant), a stated number of underlying shares of stock at a specified price during a specified period of time.

      Underlying shares are the shares, unissued or issued as the case may be, of a corporation which may subscribed to or purchased by the warrant holder upon the exercise of the right granted under the warrants. The number of underlying shares a warrant holder is entitled to  buy or sell for every warrant he holds is known as the conversion ratio. The exercise period specifies the life of a warrant while the expiration date  is the date at which the warrant expires. The exercise price is the stipulated stock price at which the holder can buy or sell the underlying.

      Warrants can be issued in a number of ways: (a) as part of an initial public offering; (b) attached to a rights issue; (c) attached to bonds; or (d) as stand alone. In the case of debt or equity offerings, warrants are used as “sweeteners” to enhance marketability of the issuances. Under the  SEC Rules Governing Warrants, Issuers or warrants may be the issuer of the underlying shares or an entity other than the company underlying the warrants and may be in the form of:

a)      Subscription Warrant – a warrant which grants the right to subscribe to the new or unissued shares of stock of the Issuer;

b)      Covered Warrant – a warrant which is issued by a party other than the Issuer of the underlying shares and whose  performance of obligation is secured by the deposit of the underlying shares for the Covered Warrant with an independent Trustee which is a reputable commercial bank;

c)      Non-collateralized Warrant – a warrant issued by a party other than the Issuer of the underlying shares and whose performance of obligation is not secured by a deposit of the underlying shares. Instead, the Issuer normally adopts hedging strategies to provide for its obligations during the life of the Non-collateralized Warrant.

      Even if the trading of warrants is relatively new in the Philippine stock market, it has gained some popularity. Currently, there are eight (8) warrants listed at the PSE. The warrant holder has the chance to have the same exposure in the market, as with buying the stock itself, using lesser amounts of money and the advantage of having more time, i.e. exercise period, in which to raise money to purchase more shares (the underlying stock). Also, the investor is protected from the downside risk of the underlying stock’s price depreciation since the exposure of their money is limited to only the price of the warrants.


The stock market is the place where shares of stock are traded while the stock exchange is the organization that provides the facilities for the buying and selling of securities. The trading floor is the place where member-brokers trade daily. The Philippine Stock Exchange (PSE) is the only operating stock exchange in the Philippines and has two trading floors located at the PSE Centre in Pasig City and at the PSE Plaza in Makati City.

Trading at the two trading floors or PSE is electronically linked by a computerized trading system, the MakTrade System, which uses the single-order-book system where all the orders are posted and matched in one computer. All trade orders entered by brokers in behalf of their clients are matched with the best bid/best offer (BBO) regardless of which floor orders originate.


Trading at the PSE is from 9:30 a.m. to 12:00 noon in a continuous session daily, except Saturdays and Sundays, legal holidays and days when the Banko Sentral ng Pilipinas (BSP) Clearing Office is closed.


As the organization that facilitates stock trading, the PSE is not directly involved in the buying and selling of securities. It is the Members (also known as member-broker or member-firms) who can buy or sell stocks for the investors since they are authorized and licensed by the Securities and Exchange Commission (SEC) to transact business as a broker and/or dealer or securities.

A stockbroker acts as an agent or middleman between the investor and other buyers/sellers. As an intermediary, the stockbroker executes orders for clients, purchasing or selling the stocks on the stock exchange. On the other hand, a dealer acts as the principal rather than an agent – buying and selling for his/her own account.

An individual or corporation is considered a PSE Member once they have acquired a “membership seat” and have met all the set requirements for membership. Each Member is entitled to one seat which can be bought from an existing Member or from the Exchange.

a) Choose a stockbroker.        In choosing a broker, you must also see to it that the broker (person or corporation) is a member of good standing at the Philippine Stock Exchange. A complete listing of the PSE member-brokers can be found in various publications or from the PSE Membership Department. It is important that you trust your broker and that you are satisfied – with the services it is giving you. Broker services include market reports, advice regarding stock selection and timing of purchases and sales, trade executions, on time delivery of important documents – such as confirmation receipts – and other trading-related activities that the client may require.

b) Open a brokerage account.  Once the investor has chosen his brokerage firm, a brokerage account has to be opened. This account allows the client to perform stock transactions (buy and sell shares) any time – similar to bank account which enables you to deposit, transfer and withdraw money.

Opening a brokerage account is relatively easy to accomplish and takes not longer than opening a bank account. A specimen signature card needs to be filled out, containing the: name, address (professional and private), telephone number(s), and most importantly, the client’s signature. Frequently, bank and professional references have to be submitted.

Once an account has been opened, the client may buy or sell immediately according to the trading instructions between the investor and broker. Trading instruction can vary depending on the investors’ objective – whether it is short-term or long-term, minimum or maximum value of trades (trading limit), etc. All transactions are handled confidentially and the broker will not reveal to any person the details of any purchases or sales done for his client.

c) Place your order with your broker.   After opening the account, a trader will be assigned to the investor. A trader is a licensed salesman who is authorized to buy and sell securities at the PSE. The assigned trader will be your contact person for all the transactions. He/she will receive your order, most likely by telephone (unless arrangements are made), and will execute the order through the trading terminal connected to the main system of the Exchange.

Thus, when placing an order to buy or sell, you have to call your trader and give the details of your order. The trader need to know the following specifications: buy or sell order, which stock to buy or sell, the number of shares to buy or sell, and preferably also the bid price (when buying) or asked price (when selling).

d) Settle your transaction.       Buying and selling transactions are settled by book-entry. This means the ownership of shares and cash is transferred electronically to the brokerage account, without the stock certificates and cash being handed over physically. The account is credited when buying shares, and debited in the case of selling shares.

The paperless or scripless trading, now in place, has eliminated the physical handover of stock certificates when buying or selling. The system replaced the scrip-based system where stock certificates are handed over for transfer for the next owner, which may take more then 3 to 4 weeks. Instead, stock certificates are simply immobilized and kept in a safe place – the Philippine Central Depository, Inc. The book-entry system clearly advantages over the paper-based system. It has dramatically reduced paper work, facilitated the trading and eliminated the loss or forgery of shares.

Currently the PSE settles trades on T+4, i.e., four (4) days after the transaction date. Therefore, payments and/or securities must be delivered to your broker on or before 1:00 p.m. of the fourth trading day following the sale. Be sure to always verify the settlement deadline with your broker for future developments.


The minimum amount of money needed to invest in the stock market depends on the minimum amount of shares to be traded for the stock. This minimum amount will be determined by the prevailing market price of a particular stock. For each stock the minimum amount of shares to be traded is fixed and depends on the price range of the stock, as shown in the table below (otherwise known as the Board Lot Table). To determine the minimum amount of shares, the investor takes the market price of the wanted stock, looks for the price range in the table below reads the minimum amount of shares in the same row.

Table 1
Board Lot Table


Minimum Amount of

Price ranges

Shares

0.001
to
0.0024
1,000,000
0.0026
to
0.005
1,000,000
0.0055
to
0.01
1,000,000
0.011
to
0.025
100,000
0.026
to
0.05
100,000
0.0525
to
0.10
100,000
0.105
to
0.25
10,000
0.26
to
0.50
10,000
0.51
to
1.00
10,000
1.02
to
2.50
1,000
2.55
to
5.00
1,000
5.10
to
10.00
1,000
10.25
to
25.00
100
25.50
to
50.00
100
50.50
to
100.00
100
101.00
to
250.00
10
252.50
to
500.00
10
505.00
and
upward

10


      For example, an investor wishes to buy a stock whose market price is P100.00. This price is in the P50.50 to P100.00 price range; consequently, the minimum number of shares to be bought at a regular transaction is 100 shares. In this case, the minimum amount of the investor needs is just about P10, 000.00 (100 shares x P100.00 share price) exclusive of other charges for buying stocks.

      For shares in the lowest range (from P0.001 to P0.0024) a minimum of P1, 000,000 shares have be bought. If the share price is P0.001, the minimum capital outlay is P1, 000.00 (P0.001 x 1,000,000 shares).


Brokerage commission.           When buying and selling listed securities, the brokerage firm always acts as an agent between you, the buyers and sellers. His function is to execute the client’s order and to give advice when required. For the services rendered, the brokerage firm charges its clients a commission. When you buy stock, the brokerage firm adds the commission to the value of the shares bought. When you sell shares, the commission is deducted from the proceeds that you receive. The maximum fee is 1.5% of the gross value of the transaction (i.e., the number of shares multiplies by the price) plus 10% value added tax (VAT). This means that 10% is added to the brokerage commission to be paid with a maximum of 1.65% (1.5% + 10%).

Transfer fee.             A transfer fee of P100.00 plus 10% VAT is charged to the buyer by the transfer agent for every security traded. The transfer agent maintains the ledgers for each issuer the company showing the details about each registered stockholder. It also has the responsibility to cancel the old certificates and change the name when the shares have been sold.

Cancellation fee.       Sales transaction and/or direct transfers are subject to a cancellation fee of P20.00 per bearer certificate plus 10% VAT.

Philippine Central Depository (PCD) fees.       For the book-entry-settlement system, buying and selling transactions are subject to an ad valorem rate of 0.00009174 (inclusive of VAT), without any maximum or minimum amount, in lieu of transfer fee and cancellation fee. If the client buys a PCD-eligible issue and still wants a stock certificate issued to his name, he must pay the PCD ad valorem charge, a P25.00 upliftment/withdrawal fee per request and transfer fee. Also, if a client sells a PCD-eligible issue and still has the stock certificate for delivery to the broker, he is charged with the PCD ad valorem rate and a cancellation fee.

Documentary stamp tax.        The documentary stamp tax is charged to the buyer on every purchase transaction at the rate of P1.50 for every P200.00 par value of the stock being transferred or a fraction thereof.

Stock transaction tax.                        The stock transaction tax is charged to the seller for every sale of stocks listed and traded on the Exchange at the rate or ½ of 1% of the value of transaction, in lieu of the capital gains tax.

It should be noted that these tares are subject to changes. Please ask your brokerage firm for the current tax rates and charges.

Illustration 1: Buying securities

If we assume that an investor buys 2,000 shares of stock at a market price of P5.00 per share with a par value of P1.00, the computation for the total cost of the transaction is as follows:

Investment cost (2,000 shares x P5.00)P10, 000.00
Add:
     Brokers' commission (10,000.00 x 1.5%)
150.00
     10% VAT on brokers' commission
15.00
     Transfer fee
100.00
     10% VAT on transfer fee
10.00
     PCD fee (10,000.00 x 0.00009174)
0.92
     Documentary stamp tax
     [(2,000 shares x P1.00) x P1.50]
15.00
       200
Total cost of the transactionP10, 290.92

      This computation will be reflected on the Confirmation of Purchase which contains the details of the buying transaction and which will be delivered by the broker to his client.

      Illustration 2: Selling securities

      For an investor who sells 500 shares at a market price of P20,00 per share, the computation is as follows:

Sale proceeds (500 shares x P20.00)P10, 000.00
Less:
     Brokers' commission (10,000.00 x 1.5%)
150.00
     10% VAT on brokers' commission
15.00
     Stock transaction tax (10,000.00 x 0.005)
50.00
     Cancellation fee
20.00
     10% VAT on the cancellation fee
2.00
     PCD Fee (10,000.00 x 0.00009174)
0.92
Net amount to be received
P9, 762.08

      This computation will be reflected on the Confirmation of Sale which contains the details of the selling transaction and which will be delivered by the broker to his client.



As part owner of the corporation, stockholders are granted several rights.

Rights to receive dividends      When dividends are declared by the company’s Board of Directors, shareholders are entitled to these dividends, but in proportion to the number of shares held. However, shareholders cannot claim dividends when the company decides not to declare any.

Voting rights                        The common stockholders have the right to vote and to decide on a broad range of corporate issues, e.g. reorganizations, mergers, issuance of new stock and, last but not the least, the election of the company’s Board of Directors at the stockholders’ meetings.

Pre-emptive right       This is the right given to existing stockholders to purchase additional shares before they are offered in the general public, usually at a lower price. For example, a corporation decides to issue additional shares to the public and gives the right to all of its stockholders to subscribe to the new shares at the ratio of 1:2. For every 2 shares owned, present shareholders have the option to buy one additional share, if they so desire.

Limited liability and last claim to the company’s assets liquidation           If the company in which you own stocks goes bankrupt your total loss as a stockholder is limited to the amount that you paid for the security. You have the claim against the company’s remaining assets; however, your is the last behind all other creditors, such as suppliers, employees and bondholders. The biggest risk you face is the loss of capital that you have invested because the company’s stock becomes worthless. Neither the corporation, the banks from which it borrowed money, nor the bondholders to which it owes money have any claims on your personal assets.


As owner of a corporation’s share of stock or stockholder, your return can come from either dividends or capital gains.

Dividends are periodic payments made by the company to its shareholders from its current and past profits. It is paid in either of two ways. The first and most common method is cash; the second method is known as stock dividend.

      Cash dividend    This income is computed by multiplying the number of shares held by the cash dividend rate declared. For example, if a company declares a P0.25 per share cash dividend to tits shareholders, a stockholder with 10,000 shares of stock will receive a cash dividend income of P2,500 (P0.25 x 10,000).

      Stock dividend    This dividend is given to shareholders in the form of additional stocks, instead of cash. For example, a company with one million outstanding shares declares a 25% stock dividend. A stockholder who owns 10,000 shares will receive an additional 2,500 shares (355% of 10,000) for free as a stock dividend. This stockholder now owns 12,500 shares.

Dividend payments are not automatic. All dividends must be declared by the company’s Board of Directors, but it is the decision of the company whether to declare dividends or not, the amount and when it will be paid. Usually, the higher the company’s profit, the higher the dividends paid to the stockholders. But if the Board decides not to declare a dividend, the common stockholders receive nothing. Common stockholders cannot demand dividend payments even if the company is profitable.

Capital gains                       This results form capital appreciation, or an increase in the market value of the stock you own. For example, an investor buys 10,000 shares of stock at P2.00 per share. After several weeks, the market price of the stock increases to P3.00.  If the investor decides to sell all his shares, he will be getting a total value of P30, 000 which represents a 50% capital gain form his purchasing value of P20, 000. Thus, capital gains are profit made due to an increase in the market price of a stock form the purchase price.

The combination of the dividend income and the capital appreciation made constitutes the total return. The nominal rate of return is calculated by assign up the cash dividend income and the capital gains (pr losses) and dividing the sum by the purchase price.

capital appreciation + dividend income
       nominal rate of return =-------------------------------------------------------- (in %)
      purchase price of the stocks

For example, a company declares a cash dividend of P5.00 annually. In the meantime, the stock price reaches P30.00 form a purchase price of P20.00 a year ago. An individual who owns shares of stocks of the company and sells his 100 shares after receiving the cash dividend, has a total return of P1,500 (P5 x 100 +P10 x 100). The total rate of return would be 75% or P1,500 divided by the purchase value of P2,000.



Having placed an initial amount in stocks, the next step is to keep track of the stock price and to follow closely the developments of the company. It would not be wise to put your stock certificates in a safe and have them locked away for years. There have been too many cases of companies that performed badly for years, or even worse – got bankrupt. It would be too bad for an investor to discover after years that the shares have little or no value anymore.

A wise investor always keep track, on a regular basis, of the sock price and the company’s performance. This way, an investor is able to foresee possible consistent poor performance and low profits as well as consequently low stock prices. One of the most important factors influencing the amount of success achieved by an investor is the quality of information used to make investment decisions.

Investors should therefore spend some time and effort in studying their investment and keeping up-to-date with the developments in the company, the industry and the economy.

Stock market information       For price and other stock market information, investors can rely on the following sources: stockbrokers, Philippine Stock Exchange, media (newspapers, television and radio), and information service companies (i.e., Bloomberg, Reuters, Technistock, etc.)

Daily quotation of stock prices can be obtained from your stockbroker. Investors can call their broker any time to inquire about the status of the stock market which includes stock process, closing and opening prices, bid and asked prices, and traded volumes. Usually brokers can also provide you with reports on the company and industry analyses which give you an in-depth look into the performance of a particular corporation, industry or sector that will lead to an advice to buy, hold or sell.

Stock price information can likewise be obtained from the Philippine Stock Exchange. It also keeps a copy if all corporate statements that have to be disclosed to the public and the PSE as part of its disclosure requirements. Annual, semi-annual and quarterly reports have to be submitted to the PSE on a regular basis by every listed company. These reports and other financial statements are kept in the PSE library and are available to the public.

In addition, the PSE Research and Public Information Department issues statistical Weekly and Monthly reports and Fact Book in a regular basis. These contain among others, trading statistics, the composite index and sectoral indices, market capitalization of listed companies, volume and value traded. These publications are available at the PSE Library. The Library is open daily form 8:00 a.m. to 12:00 noon and from 1:00 p.m. to 5:00 p.m., except Saturdays, Sundays, and legal holidays. Also, these publications are on sale at he Public Information and Assistance Center in Pasig City.

Most leading daily newspapers cover the stock market and publish the previous days closing prices and traded volume.

For more in-depth news about the stock market, investors can turn to TV programs which gives updates about the company, the various industries and particular companies while stock price information is shown simultaneously. “Stock market Live” on Channel 21 (Sky cable) covers the stock market every morning during trading hours.

Those who have a computer can access the World Wide Web for the latest stock market information. Numerous brokerage houses provide closing prices as well as the composite index and the indices of the different sectors. And give background information about the stock market along with the market recommendations. You can visit the PSE at http://www.pse.org.ph.

Information about a listed company      Apart from keeping track of the stock prices and other indicators, the investor should likewise monitor closely the companies he/she invested in. The financial performance, dividend declarations, future outlook, the management of the company, corporate developments, development plans – in short, anything that could affect stock process – should be looked into. The following sources of information can be consulted for company analysis:

Corporate annual reports.                        The annual reports of a corporation are probably the best source for facts about a company. The most valuable information contained in these reports are the financial statements, the company overview, the achievements and developments, and future prospects.

Prospectus.         When a corporation wants to issue new shares to the public, it must prepare a complete report about he company’s activities and development plans, called a prospectus. Particularly, the prospectus must mention how the raised funds will be used and attributed, This report is generally detailed and contains accurate information since it has to be approved by the Securities and Exchange Commission before the company is allowed to issue the shares.

A copy of the annual report and the prospectus can be obtained from the issuing corporation or from the underwriter. Copies are also available at the PSE Library or form your broker.

Another source of information are company reports prepared by brokers’ research staff. Full-service brokers regularly analyze listed companies and consolidate their findings in a report which is usually available to their clients.


Before making any investment, you must first evaluate your current and potential means, and determine the goal or purpose of making the investment. Every investor should ask himself the following questions before making the first purchase:

“How much money do I have to invest and can I afford to invest without adversely affecting my life-style?”What you want to invest may be quite different from what you have to invest. It is true that the bigger your investment, the bigger the possible capital gains. Consider an annual rate of return of 20%. If you had invested P100,000 you would have gained a profit of P20,000. But an investment of P500,000 would have yielded P100,000. Therefore, it might be tempting to put as much money as possible in the stock market to get rich quickly. Butt investors should only invest extra money; they should not borrow to be able to purchase more shares. Remember that stock investment carries a certain risk. Stock priced can very substantially from day to day. Borrowing money acts as leverage: if stock prices are increasing, the profits realized will be higher due to a bigger initial investment. But what if stock prices are declining and you are incurring a capital loss? There might not be enough money left to repay the borrowed money in the stock market – money in excess of that required for their living expenses, savings, the necessary insurance coverage and cash reserves for emergencies. Determining your capital available for investing should be considered first.

“What is the purpose of my investment?”          To generate cash immediately or to build capital? For receiving dividends or for capital appreciation? For a child’s education or your retirement? For short-term benefits or long-term gains?

“How much return would you accept as reasonable for your investment?”   Be realistic about the returns the stock market can give you. Don’t expect extraordinary returns.

“How much risk am I willing to accept?”          Stated differently: How much money are you able and willing to risk. Each individual should set a limit and be prepared to get out of his stock when the limit is reached.

These are the questions you must answer before making any investment. Based on the answers, a particular investment strategy has to be designed to achieve those goals. More specifically, investments instruments have to be chosen – stocks, debt securities and deposits – that will give you the expected return at the desired moment, and with their specific risk characteristics.

These are the questions that your broker will ask in order to create your financial profile. It becomes part of the information he or she considers when making investment recommendations and selecting specific financial assets.


Investigate before investing.     Investors should spend some time  ____________________________________ and particular stocks to invest in. It is not advisable to put your money into any stock without first looking at the corporation. Issues that have to be looked into are: market share and sectoral importance, the financial performance of the company as shown in the annual and other financial reports, the management, development plans, growth opportunities, etc. Please ask your broker for assistance in selecting the stocks.

Diversify your portfolio.         Diversification is the opposite of “putting all your eggs in one basket,” a practice that is as risky as putting all your funds in one stock. Although temptation of putting everything into one stock might be very great, especially when the price is moving upward, it should be avoided. It is one of the basic rules in stock market investing. Diversification, on the other hand, is the investment strategy of investing in different industry sectors and if possible, different stocks from different reduce your risk considerably.

Don’t rely on rumors.                        Frequently, rumors circulate in the stock market, especially when there is heavy trading. At such times, people launch rumors as to where the stock price will go, often to make money out of it. Rumors and hearsay should be carefully checked and verified by the investor. Consider the source and the motive behind the launching of the information and never act on the basis of a rumor that cannot be verified.

Monitor your investments.       As discussed in number 13, having placed an initial amount in stocks, an investor should now keep track of the stock price and the company’s performance on a regular basis. Only in this way you are able to foresee possible consistent poor company performance which will be reflected in low stock prices. Investors should therefore keep up-to-date with the developments in the company, the industry and the economy.

Don’t be greedy.        The principle of making a profit in the stock market is simple: buy low sell high or buy when the stock is inexpensive and wait till its price increases to sell. But investors should not try to buy at the bottom or sell at the top. It is difficult to foresee when the stock price has reached its bottom or top. Even trained experts with the best tools cannot accomplish this feat frequently. Instead, investors should set objectives in terms of expected return and profit and act accordingly. When the stock is still rising and the investor feels that the price has reached the desired level yielding the expected profit, it is time to start selling. He should not cling onto his shares for that extra bit of profit. For at the peak many investors will get nervous and start selling, pulling down prices sharply and quickly. When this happens, it may be difficult to sell, resulting in a lower-than-expected gain or profit. Greed in this case, will cause much disappointment. Investors should therefore sell according to the previously set profit objective and not wait for the very last moment. Simple: don’t be greedy.

Limit your risk.        Remember that stock investments are subject to risk. Very few people like to sell at loss and, consequently, hold on their shares, even when the stock price keeps falling. A better attitude would be to limit and manage your risk. A maximum level of loss should be set (e.g. 20% stock price decrease) and get out of the stock when this level has been reached. In that way, a further loss of capital is prevented, which can be used for other investment opportunities.


All financial assets carry some risk – the risk that the actual return might be lower than expected or promised. However, the risk characteristics are distinct depending on the type of investment instrument.

Fixed-income securities, such as bonds, preferred stocks and convertible securities, generally carry a low level of risk. The buyer of these assets know in advance how much interest payment he will receive at the end of each month. This is true for treasury bills, savings, and time deposits, and to lesser extent, also dollar deposits. The risk is related to the failure of the financial institution – bank, private company or government – to pay the promised interest at regular intervals. When a bank goes bankrupt, its assets might not be sufficient to pay all the debts, including the interest to the account holders. They will receive less, or nothing at all. Likewise, when the government’s deficit becomes too large, it might not be able to pay the holders of treasury bills the promised interest. Fortunately, private and government organizations have generally proven to be able to hold their promises and repay the money they borrowed.

The returns from stocks, however, are less predictable. Remember that stock provides potential income in the form of cash dividends and capital gains when the stock price appreciates. As outlined earlier, cash dividend payments are not fixed. It depends on the Board of Directors of the company if dividends will be paid out, the amount of it and the time. Therefore a stockholder is never sure of the cash dividend he will receive. This is the first type of risk he encounters when buying stock.

Secondly, the capital gains an investor is entitled to depend on the price movement of the stock. Since stock process can be very volatile, i.e. can vary substantially from one day to another, the increase in the market value of the shares held varies too. As history has shown, stock prices can speed up, but can also take a sharp dive. As stock prices go down, the capital gains decrease, or even result in capital loss. Thus, this type of risk refers to the volatility of the capital gains. Together, the variability of the cash dividends and of the capital gains constitutes the total risk of stockholder.

To summarize, stocks are by far the most risky of financial instruments, but also the most profitable. On the long term, they have proven to substantially outperform other financial assets, and be the best hedge against inflation and loss of buying power. Fixed-income securities generally provide less than half the return on stocks but exhibit substantially less risk.

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