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.

January 2014

Volume 5, No. 2

Do You Want to Earn Thru

Dividends or Capital Gains?
The obvious answer is Both!
Let me backtrack. There are
two ways of earning in the stock
market. The most popular way is
through Capital Gains.
Thats what gets bragged in
the office cafeteria. I bought this
unknown company at P1.23 last
month. Today, its gone up to P2.58!
Whoot! And a lot of congratulatory
high-fives follow.
But that same guy didnt mention how he bought
another unknown company at P0.45 last month and
its doing P0.08 today. No one talks about losers, only
winners.
Because talking about the winners is exciting.
And it makes you look very sexy.
Hey, I like Capital Gains too. Who doesnt? Its like
winning the lotto. In the history of the TrulyRichClub,
weve had wonderful stories of Capital Gains. Not
from unknown companies, mind you, but from our
humongous giants. (For example, when we sold JGS
last year, we enjoyed a 40 percent capital appreciation.)
But as exciting as these are, I believe the bulk of
your long-term profit will come from dividends.
Wharton finance professor Jeremy Siegel studied
the stock market returns from 1871 through 2003a
span of 132 years! Do you know what he found out? In
that loooooong period, 97 percent of the total returns
from stocks came from dividends, and only three
percent came from capital appreciation.
What does that mean?
In the long-term, a huge part of your earnings
will come from DIVIDENDS. Thats when the gigantic
company you buy gives you annual or semi-annual
share of their profits. Sometimes, its two percent or

Stocks
Update
Stocks
Update

three percent or four percent or five

percent a year It really depends
on the company.
These tiny dividends arent
very exciting.
But over time, they compound.
And they will make you very rich. In
20 years, this is what will make you
a multimillionaire. (Obviously, this
works if you reinvest the dividends
as we always tell you to, and not
withdraw it from the stock market to buy a wide-screen
TV or take a trip to Hong Kong.)
Here are a sample of the SAM Stocks that give you
dividends:
BDO - 2.2%
EEI - 2.2%
LRI - 5.5%
TEL - 6.7%
I know, they dont look very exciting.
But believe me, in the decades to come, they will...
Have a fantastic year ahead of you!
Happy investing!


May your dreams come true,

Bo Sanchez
P.S. In this issue, Mike talks about the Target Price.
P.S2. Do you want to learn new ways to grow your
income? Join me at the WEALTH SUMMIT 2014, our
biggest financial event of the year. For more information,
click here now.

Page 1 of 7

Investor Education:
THE TARGET PRICE
By Mike Vias

On our last issue, you may have noticed that most of the Target Prices of our SAM Stocks were lowered. This
may have heightened your wonder on what a Target Price is all about. Thus, for this issue Id like to embark on an
educational initiative to explain further the Target Price and why this was lowered recently for our better understanding,
appreciation, and usage.
The Target Price or Fair Value (as some might call it) is a companys estimated worth or fair market value as
computed by various ways specific to its industry by equity analysts (in our case COL Financial Research). It is a
forecasted price level that a stock may reach in the long term (maybe six months to a year, even two years, or more). If
such a price target is achieved, for the investor, it would result to the best projected outcome for his or her investment.
This prompts the investor to exit or sell his or her stock to realize possibly, the most reward.
The computation of which is dependent on the stocks industry. Examples of some methods of computation for
Target Prices are DCF, NAV, P/BV, P/E (you may opt to study more on how its computed through these methods in
your own time). One interesting thing about Target Prices is that, there is no surefire way to calculate them. They use
different tools and methods to compute for it. Thus, one analyst may set a Target Price different from another analyst.
The Target Price of a specific stock may be upgraded or downgraded by analysts based on projected performance
of the company as well as economic considerations of the country where that stock is traded.
Recently, we saw that most FV estimates or Target Prices of our SAM Stocks were downgraded. This was
primarily caused by higher interest rates driven by the US tapering. In such a case, investors would be less willing to
pay higher prices for stocks as funding cost goes up while returns on cash and other alternative investments increase.
Given the higher interest rates, most of the Target Prices in COLs coverage list (which includes most of our SAM
Stocks) decreased by an average of 10.9 percent.
To us long-term investors, this shouldnt stop us from continuing our regular monthly or quarterly SAM
investments (buying SAM stocks at Buy Below Prices). The downgrades relevance to us is only seen in the lowering
of Buy Below Prices. Thus, we should be mindful of such changes in our regular stock purchases and watchful of
prices when they approximate the Target Price for a possible sell prompt.
I hope this brief explanation of the Target Price helped in your education and understanding as an investor.
Happy Investing!

Here are our SAM Tables (as of closing January 29, 2014).
STOCK

Current Price

Buy Below Price

Target Price

AC

528.00

551.20

689.00

Continue buying

BDO

80.20

75.20

94.00

Stop buying for now

DNL

7.25

7.28

9.10

Continue buying

EEI

9.95

10.16

12.70

Continue buying

LRI

8.89

12.68

15.85

Continue buying

MBT

76.20

80.00

100.00

Continue buying

MEG

3.59

3.63

4.54

Continue buying

SMPH

15.18

15.53

19.41

Continue buying

TEL

2,706.00

2,608.00

3,260.00

Stocks
Update
Stocks
Update

Volume 5, No. 2

January 2014

Action to Take

Stop buying for now

Page 2 of 7

STOCK
SYMBOL

DATE
BOUGHT

PRICE
BOUGHT

PRICE
TODAY

YOUR
RETURN

BUY BELOW
PRICE

TARGET
PRICE

EXPECTED
GROWTH

AC

Jul-13

603.50

528.00

-12.51%

654.80

753.00

24.77%

Aug-13

598.50

528.00

-11.78%

602.40

753.00

25.81%

Sep-13

580.00

528.00

-8.97%

602.40

753.00

29.83%

Oct-13

601.50

528.00

-12.22%

602.40

753.00

25.19%

Nov-13

569.50

528.00

-7.29%

602.40

753.00

32.22%

Dec-13

555.00

528.00

-4.86%

602.40

753.00

35.68%

Jan-14

525.00

528.00

0.57%

551.20

689.00

31.24%

TOTAL

-8.15%

25.59%

BDO

Apr-13

86.10

80.20

-6.85%

89.60

112.00

30.08%

Jun-13

84.50

80.20

-5.09%

97.40

112.00

32.54%

Jul-13

87.50

80.20

-8.34%

97.40

112.00

28.00%

Aug-13

82.00

80.20

-2.20%

89.60

112.00

36.59%

Sep-13

75.40

80.20

6.37%

89.60

112.00

48.54%

Oct-13

78.40

80.20

2.30%

89.60

112.00

42.86%

Nov-13

78.00

80.20

2.82%

89.60

112.00

43.59%

Dec-13

69.95

80.20

14.65%

89.60

112.00

60.11%

Jan-14

71.80

80.20

11.70%

75.20

94.00

30.92%

TOTAL

1.71%

35.32%

DNL

Feb-13

6.45

7.25

12.40%

8.48

9.75

51.16%

Mar-13

6.71

7.25

8.05%

8.48

9.75

45.31%

Apr-13

7.00

7.25

3.57%

8.70

10.00

42.86%

May-13

8.36

7.25

-13.28%

8.70

10.00

19.62%

Jun-13

7.90

7.25

-8.23%

8.70

10.00

26.58%

Jul-13

6.58

7.25

10.18%

8.70

10.00

51.98%

Aug-13

6.87

7.25

5.53%

8.40

10.50

52.84%

Sep-13

6.37

7.25

13.81%

8.40

10.50

64.84%

Oct-13

6.75

7.25

7.41%

8.40

10.50

55.56%

Nov-13

6.50

7.25

11.54%

8.40

10.50

61.54%

Dec-13

6.13

7.25

18.27%

8.40

10.50

71.29%

Jan-14

6.59

7.25

10.02%

7.28

9.10

38.09%

TOTAL

6.61%

48.47%

Legend:

n Continue Buying

Stocks
Update
Stocks
Update

Volume 5, No. 2

n Stop Buying

January 2014

Page 3 of 7

STOCK
SYMBOL

DATE
BOUGHT

PRICE
BOUGHT

PRICE
TODAY

YOUR
RETURN

BUY BELOW
PRICE

TARGET
PRICE

EXPECTED
GROWTH

EEI

Oct-13

9.57

9.95

3.97%

10.40

13.00

35.84%

Nov-13

9.88

9.95

0.71%

10.40

13.00

31.58%

Dec-13

9.70

9.95

2.58%

10.40

13.00

34.02%

Jan-14

10.04

9.95

-0.90%

10.16

12.70

26.49%

TOTAL

1.59%

31.98%

LRI

Jun-13

11.50

8.89

-22.70%

12.68

15.85

37.83%

Jul-13

11.00

8.89

-19.18%

12.68

15.85

44.09%

Aug-13

10.50

8.89

-15.33%

12.68

15.85

50.95%

Sep-13

9.72

8.89

-8.54%

12.68

15.85

63.07%

Oct-13

9.10

8.89

-2.31%

12.68

15.85

74.18%

Nov-13

9.25

8.89

-3.89%

12.68

15.85

71.35%

Dec-13

8.82

8.89

0.79%

12.68

15.85

79.71%

Jan-14

8.71

8.89

2.07%

12.68

15.85

81.97%

TOTAL

-8.64%

62.89%

MBT

Jun-11

50.06

76.20

52.21%

78.88

93.60

86.96%

Jul-11

55.69

76.20

36.84%

78.88

93.60

68.09%

Aug-11

52.85

76.20

44.18%

78.88

93.60

77.11%

Sep-11

50.40

76.20

51.19%

78.88

93.60

85.71%

Oct-11

48.34

76.20

57.65%

78.88

93.60

93.65%

Nov-11

50.33

76.20

51.40%

78.88

93.60

85.97%

Dec-11

47.60

76.20

60.08%

78.88

93.60

96.64%

Jan-12

49.42

76.20

54.19%

83.07

108.00

118.54%

Feb-12

55.23

76.20

37.97%

83.07

108.00

95.55%

Mar-12

61.60

76.20

23.70%

93.91

108.00

75.32%

Apr-12

60.20

76.20

26.58%

93.91

108.00

79.40%

May-12

62.13

76.20

22.66%

93.91

108.00

73.84%

Jun-12

60.55

76.20

25.85%

93.91

108.00

78.36%

Sep-12

65.38

76.20

16.55%

93.91

108.00

65.19%

Oct-12

65.10

76.20

17.05%

104.35

120.00

84.33%

Nov-12

67.24

76.20

13.33%

104.35

120.00

78.48%

Jan-13

72.38

76.20

5.28%

113.04

130.00

79.61%

Feb-13

78.75

76.20

-3.24%

129.57

149.00

89.21%

Mar-13

81.90

76.20

-6.96%

129.57

149.00

81.93%

Apr-13

82.81

76.20

-7.98%

129.57

149.00

79.93%

Jun-13

84.70

76.20

-10.04%

129.57

149.00

75.91%

Jul-13

78.89

76.20

-3.41%

129.57

149.00

88.87%

Aug-13

77.00

76.20

-1.04%

119.20

149.00

93.51%

Sep-13

84.65

76.20

-9.98%

91.68

114.60

35.38%

Oct-13

86.95

76.20

-12.36%

91.68

114.60

31.80%

Nov-13

80.55

76.20

-5.40%

91.68

114.60

42.27%

Dec-13

73.20

76.20

4.10%

91.68

114.60

56.56%

Jan-14

73.75

76.20

3.32%

80.00

100.00

35.59%

TOTAL

19.42%

76.20%

Stocks
Update
Stocks
Update

Volume 5, No. 2

January 2014

Page 4 of 7

STOCK
SYMBOL

DATE
BOUGHT

PRICE
BOUGHT

PRICE
TODAY

YOUR
RETURN

BUY BELOW
PRICE

TARGET
PRICE

EXPECTED
GROWTH

MEG

May-13

4.23

3.59

-15.13%

4.16

4.78

13.00%

Jun-13

3.67

3.59

-2.18%

4.16

4.78

30.25%

Jul-13

3.15

3.59

13.97%

4.16

4.78

51.75%

Aug-13

3.40

3.59

5.59%

3.89

4.87

43.24%

Sep-13

3.21

3.59

11.84%

3.89

4.87

51.71%

Oct-13

3.64

3.59

-1.37%

3.89

4.87

33.79%

Nov-13

3.58

3.59

0.28%

3.89

4.87

36.03%

Dec-13

3.23

3.59

11.15%

3.89

4.87

50.77%

Jan-14

3.36

3.59

6.85%

3.63

4.54

35.12%

TOTAL

3.44%

38.41%

SMPH

Oct-13

16.90

15.18

-10.18%

17.20

21.50

27.22%

Nov-13

16.40

15.18

-7.44%

17.20

21.50

31.10%

Dec-13

15.10

15.18

0.53%

17.20

21.50

42.38%

Jan-14

14.68

15.18

3.41%

15.53

19.41

32.22%

TOTAL

-3.42%

33.23%

TEL

Jun-13

2902.00

2706.00

-6.75%

3043.48

3500.00

20.61%

Jul-13

2854.00

2706.00

-5.19%

2848.00

3560.00

24.74%

Aug-13

2800.00

2706.00

-3.36%

2848.00

3560.00

27.14%

Nov-13

2800.00

2706.00

-3.36%

2848.00

3560.00

27.14%

Dec-13

2622.00

2706.00

3.20%

2848.00

3560.00

35.77%

Jan-14

2710.00

2706.00

-0.15%

2608.00

3260.00

20.30%

TOTAL

-2.60%

25.95%

Legend:

n Continue Buying

Stocks
Update
Stocks
Update

Volume 5, No. 2

n Stop Buying

January 2014

Page 5 of 7

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

Stocks
Update
Stocks
Update

Volume 4, No. 24

January 2014

Page 6 of 7

Q & A with COL Chairman Edward Lee:

Projection for the Year 2014

Bo: Thank you, Edward, for being here. So what is the
word from our mentor?
Edward: Well, I think the market is way oversold. And
you can see some signs. Indonesia is recovering already.
Thailand, even with the political crisis, has started to
creep up also. The Philippines is the only one thats
lagging. Well, maybe because of ourits more fun
in the Philippines, theres so much money here. So the
interest rates have not really gone up. The US is already
2.8-2.9 percent already on the Ten Year US Treasury. Our
problem here is that the Philippines has so much liquidity,
the Ten-Year is still laggingaround 3.9 or 3.8.
Bo: So the dollars from the States are not coming in?
Edward: From the global perspective, we call it the
Carry Trade. The US Ten-Year Treasury is from 1.6 to
almost 3 percent. The Philippines is 3.6 to 3.8 to 3.9 so
the differential is just too small between the developed
market and the emerging market, for the Ten-Year Tresury,
Ten Year Bonds.
So two weeks ago, the BSP again issued a 4.1-4.2
for a Ten-Year. But overnight, it was snapped up. So even
if its that low, people are just putting it on the long-term
interest rates. Thats one of the reasons why I think the
peso is still depreciatingits because the interest rates
are not high enough or lucrative enough for people to
deploy long-term. So we will see some pressure, a little
bit of pressure, but I think the market, as far as the stock
market is concerned, I think were really way oversold.
And we checked with April, the head of our investment
and she was telling me that we adjusted already our risk
fee rate from 4 to 5 percent. And she really believes that
5 percent, at the end of the year 2014, its 6,600 to 6,900.
Six thousand nine hundred should be our target.
Bo: So Edward is giving you a projection for the year. If
you are going to invest every month using our Strategic
Averaging Method, youll see that at the end of the tunnel,
there is light. The bounty is there; the reward is there. So
youve got to remain faithful.
Edward: Also by this year, the earnings for the PSE
Composite is about 6.8 percent growth. We were coming
from a double digit increase last year in terms of earning.
This year, its 6.8. Next year, for 2015, theyre projecting
another double digit. I think the best thing is to continue to

Stocks
Update
Stocks
Update

Volume 5, No. 2

January 2014

deploy and invest in the

next couple of months
so that by end of 2014 or
second quarter of 2015,
you will see
Bo: They will see a
jump
Edward: Thats right.
Bo: So Edward let me
ask again. Were saying,
for 2014, there will be
growth especially at the
end. Thats what were projecting. But the bigger growth
will be 2015. So thats good news.
Edward: Yes, thats good news. Like what I was explaining
a while ago at the Wealth Circle, most people are afraid of
the local news wherein the Philippines with the disasters
that we see every day; Thailand because of their political
crisis; Indonesia is because of the current account trade
deficit. You know, what they dont understand is these
are just noise. But the real reason why the market has
gone down for Thailand, Indonesia and the Philippines is
because there is a movement to go to developed markets
instead of the emerging markets.
Bo: So you heard that from Edward. Yes, its true that
they give all sorts of reasons for why the stock market
went downYolanda, perhaps and other calamities. But
actually, its the pullout of the dollars from all the emerging
markets. So what were gonna see in this coming year is
that, perhaps a little sideways, Edward?
Edward: Well, you will see rallies But since were
long-term investors, you will have to continue to deploy
so that youll benefit once the market starts going up in
2015-2016.
Bo: So close your ears, or ignore the noise; its all noise.
What you want to do is get that amount that you have
from your income and start investing in the stock market
every single month. Keep on doing it. Then by the end
of the year, especially next year, youre gonna say, wow,
I thank God I followed the Truly Rich Club, I followed
Edward, our mentor here.

Page 7 of 7