Quotes Part III

Stop making excuses & start making progress. What you imagine, you can begin. Want you begin, you can finish


Worrying that there's not enough time leaves you with even less time.
The only difference between a Good Day And a Bad Day Is your Attitude ~Dennis S Brown


Try not to become a man of success, but rather try to become a man of value." - Albert Einstein


Try not to wait for others to motivate you....be the motivation


A man is what he thinks about all day long." - Ralph Waldo Emerson


The only limits are the ones you place on yourself


Nothing can sabotage winning, except for fear of losing. Success usually lies just beyond failure." Cortes 


You never achieve success unless you like what you are doing. ~ Dale Carnegie

Life is what we make it, always has been, always will be.Life is what we make it, always has been, always will be.Life is what we make it, always has been, always will be.

Quotes Part II

• Be proactive. Do what must be done long before it must be done & have much more time to do what you love to do

• To be a great champion you must believe you are the best. If you're not, pretend you are. -Muhammad Ali
  

• If it's important to you, you will find a way. If it's not important to you, you will find an excuse
  

• Vision really boils down to learning, and learning really boils down to passion
  

• What you do speaks so loud, I cannot hear what you say - Ralph Emerson
  

• WHAT WINNERS KNOW: Many people just do the minimum. Every extra step you take puts you that far ahead of the crowd
  

• There are those who talk endlessly about what they're going to do. Then there are those who get busy and do it
  

• Habit is a cable; we weave a thread of it each day, and at last we cannot break it
  

• You have to expect things of yourself before you can do them — Michael Jordan
  

• Success lives in the effort, in the experience, in the learning, in the growing, not in the rewards
  

Quotes Part I

The best motivation is to constantly keep yourself in contact with your reasons

Be brave and steadfast; have no fear or dread of them, for it is the LORD, your God, who marches with you; He will never never fail you or forsake you Dt 31:1-8

We need to stop listening to our excuses and realize that the only thing stopping us is us

Whatever happens, take responsibility. ~ Tony Robbins

Remind yourself again & again of why you must. Hold your head high & keep your eyes on the goal

Motivation is what gets you started. Habit is what keeps you going.~ Jim Ryun

Improvement begins with I —Arnold Glasow 

Diligently and effectively put forth your best effort, without concern for the result. It will be worth your while

Once you know what's causing the result you don't want, you'll have a strategy for creating what you do want

The secret of getting ahead is getting started." ~ Sally Berger

Review of Banking Firms

Industry:Banking and Financial

Stock Pick: China Bank Corporation

This is the second part of my take in applying my skill of reading numbers and ratios to my stock trading. 

If you haven't read the first part, read it here. You need to read the first part for quick explanation for the basis of the analysis.

Using the same process, the stock pick is CHIB or China Bank Corporation. The stock has figures above industry averages. 

Again, without following the point system, i'll go for SECB for posting 47% net profit margin coupled with 20.93% sales growth. 

The only thing that worries me is the negative cash flow from operations.

I don't own any stocks from the banking sector. I use to hold MBT but i have sold it and took profits. I bought it when it was still trading at 67 and took profits after reaching P76.

Right now, i don't have excess funds to invest but if I have additional cash, I'll probably put it in SECB then CHIB.

Review of Property Firms

Industry: Property

Stock Pick: Robinson Land Corporation

I have never really tried applying my knowledge about financial ratios or accounting skills in trading stocks. In the past, i relied on news, stock tips on forums and gut feel. So this is the first time I am doing this and by tomorrow, I'll post my first buy order for RLC. Just want to write it down here so I'll remember and determine after six months, if making an analysis is worth it.

First, let me explain the table above and each of the column,

STOCK - This column pertain to the ticker symbol of each of the public corporation engaged in the property business listed in Philippine Stock Exchange.

Price - This column is the closing price of the stock as of August 1, 2011.

COL Rating - This column pertain to my stock broker recommendation for the stock as of August 1, 2011.

Target Price - This column is the target price for the stock. The stock may or may not reach this price.

Upside - This is the potential return of the stock. The difference between the target price and stock price over the closing price. 

Sales Growth - This column pertain to sales growth forecast for 2011. This is important because we want to get in the company that is getting the big chunk of the industry's revenues. Sales is the starting figure and it is important that a company continue to increase its sales. 

Net Profit Growth - The company not only need to earn revenues but must also exhibit improving margins. It is not favorable to us investors if the company is increasing its sales and with it goes the expenses. A good company should be able to control costs.

Net Profit Margin - This ratio shows what percentage of sales is eventually reported as a profit after deducting the company's expenses. The industry's average is 29%. This means that for every peso of sales, the company has to spend 71% for expenses. We want to choose higher profit margin as much as possible. 

Cash Flow Operating - This shows how much cash the operations of the company generates. It is important to look into this number to gauge the liquidity of the company. This is not a hard and fast rule but negative cash flows from operations means that the company might need to obtain cash from creditors or investors to continue its operation. The number above will differ due to the size of the company's operation. For the meantime, just assume that any positive number is good. 

P/E Ratio - Price Earnings ratio means how much an investor is paying for the earnings of a stock. This number shows us how expensive a stock is relative to its competitors. 

Dividend Yield - I would not explain this much but this ratio just shows how much is the yield of a company's dividend relative to its current price. The higher the number, the better.

Now, assuming we consider all the criteria as equal and we give 1 point each time a company statistic is well above the industry's average. We'll get the following points

Based on the analysis, we want to get RLC for exhibiting above average numbers among the industry.

Of course, you can also decide on a single factor alone. Using the potential rewards, SMPH will be the stock choice given its 29% potential upside.

Using P/E ratio, we'll see that VLL is the cheapest among the industry players. 

Using Profit Margin, FLI ranks highest with its 40% margin.

I'm actually half-decided. Without assigning points, I'll go for FLI or MEG. FLI because it is cheap, has the fastest sales growth and high profit margin. 

MEG because it is the cheapest and has 25% upside potential. 

Right now, i own VLL, MEG and ALI. I don't own FLI and RLC and based on the ranking above, i should get these two. I only have P14k free cash in my bpi account. Let's see. I'll try to buy RLC and FLI.

Update: Bought 700 RLC and 6,000 of FLI today, August 3, 2011. Let's see what happens after six months.