Stock Market Updates as of August 2014

I haven’t shared much about the stock market lately because my posts in July were all about my stock market venture. And I know that it might have been a little boring to some readers who are not interested in this type of investment vehicle.

Also, I kind of took a break in intra-day trading because I have limited funds and my current portfolio seems to be suitable for long-term investment. (Does it sound like a defense mechanism of a loser? 🙂 ) But seriously, as I learn the ins and outs of the stock market plus the knowledge I gained in the seminars that I’ve attended, I’m slowly realizing the advantages of long-term investment over short-term trading. I will tell you more about this in a separate post. In the meantime, I will share some updates related to my stock market venture.

MA (Manila Mining Corporation)

The highest percentage of my portfolio still comes from MA (Manila Mining Corporation). This is not a blue chip company but I still hold on to this stock because I believe in its positive market outlook. The stock value increased a bit after the Stock Rights Offering (SRO) that officially showed up in July. There is a slow movement in its valuation which is indicative to its low trading volume and the trend has always been sideways.

I visited the company’s website to know the disbursements made out of the SRO proceeds. In their report on July 2, 2014, they disclosed that the highest percentage of the proceeds went to Accounts Payable Trade and Accruals while the rest went to the disbursements of  Contractors, Cost of SRO, Care and Maintenance/Adm. Expenses, Drilling Program and Payables to the government like taxes, SSS, etc.

I’m relatively new to stock market and I don’t have enough knowledge in technical and fundamental analyses so if you want to know more about MA, you may visit their website through this link.

I don’t know either if MA was a good choice of stock or if I made a mistake in investing with this company. I’m staying positive and hopefully it follows the footsteps of SCC (Semirara Mining Corporation). 🙂

SINO (Sinophil Corporation)

I used a small portion of my funds to buy SINO (Sinophil Corporation) in June 2014. It was at 1.61 per share when I bought it. A common mistake of a stock market noob is being too eager to go with the flow or buying a hot stock without studying the technical and the fundamental background of the company. Yes I’m guilty of that and I paid my price. 🙂

It was on its peak when I bought it. In technical analysis, they call it resistance. And apparently, after hitting its resistance level, it went back down again and continued to dive until it reached around 1.15 per share. Another heart-breaking experience for me. 🙁

I held on to it and waited patiently. After a month, it bounced back and reached 1.71. And that’s when I decided to sell all my shares with almost 6% profit.

PSEi finally hit its 7,000 level

August is believed to be a ghost month and for some, it is not a good time to invest or open a business. One of the reasons being is that the economy kind of slows down during this month thus some investors take a break from the market. While it is only a belief, historical data show that August seemed to be the weakest month in the stock market.

Surprisingly, PSEi (Philippine Stock Exchange Composite Index) breached the 7,000 mark for the first time in nearly 13 months! PSEi by the way, is the main stock market index of the Philippine Stock Exchange, which is one of the indicators on the general state of the Philippine economy. So when the PSEi is high or is going up, it can be an indication that our economy is doing well or the corporate earnings are improving.

Now, is it a good time to invest?

From what I learned so far, there is no such thing as best day or best time to invest. No matter if it’s ghost month or not, it’s always a good time to invest. But before you take any action, make sure to educate yourself first. As Benjamin Franklin says,

“Investment in knowledge pays the best interest.”