Stocks Update

Guidance for Stock Market Investing Exclusively for TrulyRichClub Members

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

May 2014

Volume 5, No. 9

Markets Crash All the Time:

Ho-Hum
Right now, let me guess: Your entire stock portfolio is green.
That is, if youve been investing with my guidance over the last couple of years. Not a single stock is in the red.
Youre also seeing a nice profit and feel pretty good about yourself.
But at the back of your mind, you know this isnt the real reason to be happy. Because in the past 12 months,
weve seen three dips between 10 percent to 20 percent. And every time those dips happened, newcomers in the
stock market get this pain in their stomach. Some got depressed. Some
wanted to run away. And some wanted to strangle my neck for telling
them to get into the stock market.
But some hang in there, do whats right (keep buying), and in due
time, see their profits soar.
A friend, new to the stock market, asked me, Bo, I just wish that
the stock market would just up on a smooth, straight line. Wouldnt
that be better?
I shook my head. Its during those sudden dips that your money
multiplies.
Older TrulyRichClub membersthose whove been surfing the
wild waves of the stock market for at least two yearsknow this.
Now, they love the dips. The dips are what make them really
happy.
Have you ever wondered why the economy can never go up in a
nice, smooth straight line? Economist Hyman Minsky explains it this
way: Because stability is destabilizing.
Huh?
He explains it this way: When theres stability in the economy,
people feel safe; When they feel safe, theyll take more risks and buy
more stockswhich would then force the stock prices to go too high and be oversoldwhich will then make people
feel unsafe, feel jittery, and start selling the stocksand thus dip and crash.
Thus, the volatility. Up, down, up, down, up, down
So heres my gentle suggestion: Next time a dip of 20 percent to 40 percent happens, and your stomach acids are
going ballistic, I want you to ask this question: What is Bo doing right now? How is he reacting to this bloodbath?
If you can imagine me yawning (ho-hum), propping up my feet, sipping a nice cold buko juice, and smilingas I buy
my usual monthly stocksthe answer is YES. Thats exactly what Im doing.
Let me end with two quotes I love from two Masters of the Stock Market:
Wharton professor Jeremy Siegel says, Volatility scares enough people out of the market to generate superior
returns for those who stay in.

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Page 1 of 8

Charlie Munger, partner of Warren Buffett, puts it: You can argue that if youre not willing to react with equanimity
to a market price decline of 50 percent two or three times a century, youre not fit to be a common shareholder, and
you deserve the mediocre result youre going to get compared to the people who do have the temperament to be more
philosophical about these market fluctuations.
Stop wondering if theres going to be another crash.
Just plan how youll react. (Be sure to have your buko juice ready.)

May your dreams come true,

Bo Sanchez

P.S. Get Out of Financial Mediocrity NOW. Join me on May 24 as I reveal to you the powerful habits of happy
millionaires. Come to my 8 Habits of the Happy Millionaire Seminar. See you! For more information, visit www.
TrulyRichClub.com/8Habits now!

Erratum
In our last issue of Stocks Update, we incorrectly spelled Warren Buffetts surname with only one t. We
apologize for that. Theres no doubt though that in essence, the Oracle of Omaha is indeed a buffet of knowledge
and inspiration.Joy

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Stocks
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Page 2 of 8

Recap, Updates, and Check-ups

By Mike Vias

Recap: DNL and AP

Recently, there have been some changes to our SAM list. So for those who werent able to catch them, here is a
quick recap:
SELL DNL last May 9, 2014 we issued a stock alert to sell DNL as it was close to our Target Price of P10.
We advised everyone to sell at P9.80 or higher.
BUY AP from the proceeds of the DNL sale, we advised to buy AP slowly with the projection that its
earnings will go up in 2015. More on what the company is about as well as its current status below.

Update: AP
Aboitiz Power Corporation (AP) is the holding company of the Aboitiz Groups involvements in the power
generation and distribution sector. The company has interest in hydroelectric, geothermal, and thermal power plants.
AP is also one of the largest electricity distributors in the country. Currently, it
has interests in seven power distribution utilities in Central Luzon, Visayas, and
Mindanao.
Projected earnings of AP for 2014 and 2015 are seen to be higher after
factoring in the lower expected stream cost of the Tiwi-Makban plant and the first
time earnings contribution of the newly won 246-megawatt Therma Mobile diesel
plants. These plants are expected to generate P470 million in earnings annually.
Furthermore, APs management said that it will push through with the 300MW
Cebu plant project which is foreseen to generation P2.9 billion in earnings
annually. However, this will not have any impact on profitability in the next two years. This will potentially begin to
contribute by 2017. This new Cebu project, together with other new coal plant projects 300-megawatt Davao coal
plant, 40-megawatt Pagbilao coal expansion project, will boost the long-term earnings growth of AP.
Admittedly, APs earnings are still expected to go down this year given the expiration of the Pagbilaos income
tax holiday and lower ancillary service revenues from its hydroelectric plants. However, the decline in earnings will be
less than expected due to the first full year earnings contribution of the Therma Mobile and higher earnings contribution
from Tiwi-Makan.
AP looks like its on its way to future growth, signaling a good time to begin accumulating there shares slowly
as it works towards that growth in the long term.

Check up: EEI and LRI

For the 4th quarter of 2013, EEI reported earnings of P294 million. This is up by 17.4 percent from the same
period of 2012. Despite this strong quarter, earnings for the whole year of 2013 was below the earnings forecast made
by COL and TrulyRichClub. This is lower than expected due to the decline in construction revenues that dropped to
P9.4 billion, an 8.8 percent decrease from 2012.
We continue to believe in EEI for its strong backlog of P28 billion which gives earnings visibility for the next
two years. To add, we foresee that EEI will be a main beneficiary from the increase in government spending on
infrastructure and its PPP projects.
LRI on the other hand, reported a net income of P3.7 billion in 2013. This is a 30 percent improvement from
2012. However, despite its strong performance, it still fell short in meeting broker expectations.

Stocks
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Stocks
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Volume 5, No. 9

May 2014

Page 3 of 8

Net sales grew by 16 percent to P23 billion on the back of robust industry demand for cement. On the other hand,
cost of sales increased mainly due to higher power rates and raw material prices. LRI believes that industry demand
for cement will remain robust in the following years due to the demand from infrastructure and other constructions
projects of the government. Thus, they are increasing capacity with its Cement Mill in Norzagaray manufacturing
plant. The plant has estimated capacity of 850,000 tons per annum and expected to be operational in June 2015.
I hope this recap, update, check up enlightens you and gives you confidence in your SAM investing.
Happy summer investing!

Here are our SAM tables (as of May 20, 2014 closing).
STOCK

Current Price

Buy Below Price

Target Price

Action to Take

AC

647.00

621.00

715.00

Stop buying for now

AP

37.70

38.00

44.30

Continue buying

BDO

88.65

82.74

94.00

Stop buying for now

EEI

11.16

11.04

12.70

Stop buying for now

LRI

9.97

13.78

15.85

Continue buying
Stop buying for now

MBT

88.50

86.00

100.00

MEG

4.65

4.70

5.48

Continue buying

SMPH

17.08

16.80

19.41

Stop buying for now

TEL

2,898.00

2,834.78

3,260.00

Stop buying for now

STOCK
SYMBOL

DATE
BOUGHT

PRICE
BOUGHT

PRICE
TODAY

YOUR RETURN

BUY BELOW
PRICE

TARGET
PRICE

EXPECTED
GROWTH

AC

Jul-13

603.50

647.00

7.21%

654.80

753.00

24.77%

Aug-13

598.50

647.00

8.10%

602.40

753.00

25.81%

Sep-13

580.00

647.00

11.55%

602.40

753.00

29.83%

Oct-13

601.50

647.00

7.56%

602.40

753.00

25.19%

Nov-13

569.50

647.00

13.61%

602.40

753.00

32.22%

Dec-13

555.00

647.00

16.58%

602.40

753.00

35.68%

Jan-14

525.00

647.00

23.24%

599.13

689.00

31.24%

Feb-14

538.50

647.00

20.15%

599.13

689.00

27.95%

Mar-14

574.00

647.00

12.72%

599.13

689.00

20.03%

Apr-14

590.00

647.00

9.66%

599.13

689.00

16.78%

TOTAL

13.04%

26.95%

AP

May-14

36.40

37.70

3.57%

38.00

44.30

21.70%

TOTAL

3.57%

26.76%

Legend:

n Continue Buying

Stocks
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Stocks
Update

Volume 5, No. 9

n Stop Buying
May 2014

Page 4 of 8

STOCK
SYMBOL

DATE
BOUGHT

PRICE
BOUGHT

PRICE
TODAY

YOUR RETURN

BUY BELOW
PRICE

TARGET
PRICE

EXPECTED
GROWTH

BDO

Apr-13

86.10

88.65

2.96%

89.60

112.00

30.08%

Jun-13

84.50

88.65

4.91%

97.40

112.00

32.54%

Jul-13

87.50

88.65

1.31%

97.40

112.00

28.00%

Aug-13

82.00

88.65

8.11%

89.60

112.00

36.59%

Sep-13

75.40

88.65

17.57%

89.60

112.00

48.54%

Oct-13

78.40

88.65

13.07%

89.60

112.00

42.86%

Nov-13

78.00

88.65

13.65%

89.60

112.00

43.59%

Dec-13

69.95

88.65

26.73%

89.60

112.00

60.11%

Jan-14

71.80

88.65

23.47%

81.74

94.00

30.92%

Feb-14

80.00

88.65

10.81%

81.74

94.00

17.50%

TOTAL

12.26%

37.07%

EEI

Oct-13

9.57

11.16

16.61%

10.40

13.00

35.84%

Nov-13

9.88

11.16

12.96%

10.40

13.00

31.58%

Dec-13

9.70

11.16

15.05%

10.40

13.00

34.02%

Jan-14

10.04

11.16

11.16%

11.04

12.70

26.49%

Feb-14

10.00

11.16

11.60%

11.04

12.70

27.00%

Mar-14

11.00

11.16

1.45%

11.04

12.70

15.45%

TOTAL

11.47%

28.40%

LRI

Jun-13

11.50

9.97

-13.30%

12.68

15.85

37.83%

Jul-13

11.00

9.97

-9.36%

12.68

15.85

44.09%

Aug-13

10.50

9.97

-5.05%

12.68

15.85

50.95%

Sep-13

9.72

9.97

2.57%

12.68

15.85

63.07%

Oct-13

9.10

9.97

9.56%

12.68

15.85

74.18%

Nov-13

9.25

9.97

7.78%

12.68

15.85

71.35%

Dec-13

8.82

9.97

13.04%

12.68

15.85

79.71%

Jan-14

8.71

9.97

14.47%

13.78

15.85

81.97%

Feb-14

9.00

9.97

10.78%

13.78

15.85

76.11%

Mar-14

8.99

9.97

10.90%

13.78

15.85

76.31%

Apr-14

9.24

9.97

7.90%

13.78

15.85

71.54%

May-14

9.97

9.97

0.00%

13.78

15.85

58.98%

TOTAL

4.11%

65.51%

Legend:

n Continue Buying

Stocks
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Stocks
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Volume 5, No. 9

n Stop Buying

May 2014

Page 5 of 8

STOCK
SYMBOL

DATE
BOUGHT

PRICE
BOUGHT

PRICE
TODAY

YOUR RETURN

BUY BELOW
PRICE

TARGET PRICE

EXPECTED
GROWTH

MBT

Jun-11

50.06

88.50

76.77%

78.88

93.60

86.96%

Jul-11

55.69

88.50

58.93%

78.88

93.60

68.09%

Aug-11

52.85

88.50

67.46%

78.88

93.60

77.11%

Sep-11

50.40

88.50

75.60%

78.88

93.60

85.71%

Oct-11

48.34

88.50

83.10%

78.88

93.60

93.65%

Nov-11

50.33

88.50

75.84%

78.88

93.60

85.97%

Dec-11

47.60

88.50

85.92%

78.88

93.60

96.64%

Jan-12

49.42

88.50

79.08%

83.07

108.00

118.54%

Feb-12

55.23

88.50

60.24%

83.07

108.00

95.55%

Mar-12

61.60

88.50

43.67%

93.91

108.00

75.32%

Apr-12

60.20

88.50

47.01%

93.91

108.00

79.40%

May-12

62.13

88.50

42.45%

93.91

108.00

73.84%

Jun-12

60.55

88.50

46.16%

93.91

108.00

78.36%

Sep-12

65.38

88.50

35.36%

93.91

108.00

65.19%

Oct-12

65.10

88.50

35.94%

104.35

120.00

84.33%

Nov-12

67.24

88.50

31.63%

104.35

120.00

78.48%

Jan-13

72.38

88.50

22.27%

113.04

130.00

79.61%

Feb-13

78.75

88.50

12.38%

129.57

149.00

89.21%

Mar-13

81.90

88.50

8.06%

129.57

149.00

81.93%

Apr-13

82.81

88.50

6.87%

129.57

149.00

79.93%

Jun-13

84.70

88.50

4.49%

129.57

149.00

75.91%

Jul-13

78.89

88.50

12.18%

129.57

149.00

88.87%

Aug-13

77.00

88.50

14.94%

119.20

149.00

93.51%

Sep-13

84.65

88.50

4.55%

91.68

114.60

35.38%

Oct-13

86.95

88.50

1.78%

91.68

114.60

31.80%

Nov-13

80.55

88.50

9.87%

91.68

114.60

42.27%

Dec-13

73.20

88.50

20.90%

91.68

114.60

56.56%

Jan-14

73.75

88.50

20.00%

86.96

100.00

35.59%

Feb-14

79.55

88.50

11.25%

86.96

100.00

25.71%

Mar-14

81.40

88.50

8.72%

86.96

100.00

22.85%

Apr-14

79.70

88.50

11.04%

86.00

100.00

25.47%

TOTAL

35.95%

71.22%

MEG

May-13

4.23

4.65

9.93%

4.16

4.78

13.00%

Jun-13

3.67

4.65

26.70%

4.16

4.78

30.25%

Jul-13

3.15

4.65

47.62%

4.16

4.78

51.75%

Aug-13

3.40

4.65

36.76%

3.89

4.87

43.24%

Sep-13

3.21

4.65

44.86%

3.89

4.87

51.71%

Oct-13

3.64

4.65

27.75%

3.89

4.87

33.79%

Nov-13

3.58

4.65

29.89%

3.89

4.87

36.03%

Dec-13

3.23

4.65

43.96%

3.89

4.87

50.77%

Jan-14

3.36

4.65

38.39%

3.95

4.54

35.12%

Feb-14

3.78

4.65

23.02%

4.70

5.48

44.97%

Apr-14

4.43

4.65

4.97%

4.70

5.48

23.70%

May-14

4.65

4.65

0.00%

4.70

5.48

17.85%

TOTAL

27.82%

36.02%

Stocks
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Stocks
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Volume 5, No. 9

May 2014

Page 6 of 8

STOCK
SYMBOL

DATE
BOUGHT

PRICE
BOUGHT

PRICE
TODAY

YOUR RETURN

BUY BELOW
PRICE

TARGET
PRICE

EXPECTED
GROWTH

SMPH

Oct-13

16.90

17.08

1.07%

17.20

21.50

27.22%

Nov-13

16.40

17.08

4.15%

17.20

21.50

31.10%

Dec-13

15.10

17.08

13.11%

17.20

21.50

42.38%

Jan-14

14.68

17.08

16.35%

16.73

19.41

32.22%

Feb-14

14.70

17.08

16.19%

16.73

19.41

32.04%

Mar-14

14.90

17.08

14.63%

16.73

19.41

30.27%

Apr-14

14.90

17.08

14.63%

16.80

19.41

30.27%

TOTAL

11.45%

32.21%

TEL

Jun-13

2902.00

2898.00

-0.14%

3043.48

3500.00

20.61%

Jul-13

2854.00

2898.00

1.54%

2848.00

3560.00

24.74%

Aug-13

2800.00

2898.00

3.50%

2848.00

3560.00

27.14%

Nov-13

2800.00

2898.00

3.50%

2848.00

3560.00

27.14%

Dec-13

2622.00

2898.00

10.53%

2848.00

3560.00

35.77%

Jan-14

2710.00

2898.00

6.94%

2834.78

3260.00

20.30%

Feb-14

2690.00

2898.00

7.73%

2834.78

3260.00

21.19%

Mar-14

2760.00

2898.00

5.00%

2834.78

3260.00

18.12%

Apr-14

2730.00

2898.00

6.15%

2834.78

3260.00

19.41%

TOTAL

4.97%

23.82%

Legend:

n Continue Buying

Stocks
Update
Stocks
Update

Volume 5, No. 9

n Stop Buying

May 2014

Page 7 of 8

2013 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 2013 Table however integrates a cost-averaging method throughout the months it was under the Buy-Below.
STOCKS

STOCK
SYMBOL

TIME
RECOMMENDED

ESTIMATED
TIME HELD

PRICE
RANGE

ESTIMATED
RETURN

Alliance Global

AGI

January 2013 to
February 2013

1 Month

P17.54 to P20.50

16.88%

Meralco

MER

January 2013 to
April 2013

3 Months

P268.00 to P377.00

28..05%

First Philippine
Holdings

FPH

June 2011 to June 2013

25 Months

P63.18 to P95.20

32.92%%

JG Summit
Holdings

JGS

February 12 to
October 2013

18 Months

P25.75 to P43.50

39.96%

Top Past Winners of TrulyRichClubs Stocks

STOCKS

STOCK
SYMBOL

TIME
RECOMMENDED

ESTIMATED
TIME HELD

PRICE
RANGE

ESTIMATED
RETURN

Ayala Land

ALI

June 2011 to February

2012 (3rd week)

9 Months

P15.09 to P21.65

35%

Nickel Asia

NIKL

February 2012 to March

2012 (3rd week)

2 Months

P23.75 to P26.20

10.32%

Bank of The
Philippine Islands

BPI

February 2012 to
November 2012 (4th week)

10 Months

P68.45 to P91.00

34.29%

Ayala Corporation

AC

October 2012 to
December 2012
(2nd week)

2 Months

P440.00 to P520.00

17.65%

SM Prime
Holdings

SMPH

February 2012 to
December 2012 (1st week)

10 Months

P12.48 to P17.00

27.75%

Alliance Global

AGI

January 2013 to
February 2013

1 Month

P17.54 to P20.50

16.88%

Meralco

MER

January 2013 to
April 2013

3 Months

P268.00 to P377.00

28.05%

First Phlippine
Holdings

FPH

June 2011 to June 2013

25 Months

P63.18 to P95.20

32.92%%

JG Summit
Holdings

JGS

February 12 to
October 2013

18 Months

P25.75 to P43.50

39.96%

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

Stocks
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Stocks
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Volume 5, No. 9

May 2014

Page 8 of 8