Insider Trading Calata

A few months back, I posted what I thought about Calata and how I do not like the people who owns and run it. The majority holders are speculators and politicians who I do not trust.

In its complaint affidavit filed with the Department of Justice on Tuesday, the SEC, through its Enforcement and Prosecution Department, identified the respondents as Zandro Jose Zulueta, Michael Ilustre Angeles, Carmelo Dela Cruz Bunag, Arnold Ryan Daquiz Dellosa, Richie Ramille Isip, Arnold Daquiz Martin, Gary Lincoln Calixtro Taboso, Dennis Philippe Valencia Vistan, Juvy Ocampo, Glaizel Eco, King Bryan Sulit, Alvin Morfe and Sheryl Sia.

source: http://www.interaksyon.com/business/49157/sec-sues-ceo-of-calatas-financial-advisor-12-other-insiders-for-stock-price-manipulation

If you were one of those IPO investors, you did made a lot of money. But because the insider traders did that to make themselves rich, the same amount of money was lost by other people. Its a zero sum game. They managed to pocket P216,054,949.65. And the sad thing is the fine can only amount to P5million at max. I trust the PSE to do appropriate action on this. But I really doubt if the inside traders would be jailed. There are a lot of rich and powerful people behind this and people who have position in politics. This is a test if we could really trust our stock market.

Invest in Companies with Management You Trust

This post is exactly why I wouldn't buy stocks with managers in which I don't trust.

Its exactly the reason why I sold all my shares of Puregold and Tanduay.

I sold my Puregold shares because I don't like the managers raining themselves with lucrative options and bonuses. I sold all my Tanduay shares when Lucio Tan bought it because, honestly, I can't find myself to trust his decisions for minority shareholders.

Another same situation was with Metro Pacific who were delisted. The only one profiting from that delisting is the owner and the majority holders. They delisted it in time before the dividend payouts so the majority of the profits will go to the majority holders. What can you do?

No one is going to handle your money and think of it more than you. People have motives and their own personal goal. Tycoons may be rich and you want to have a piece of their success, but their success doesn't necessarily equate to yours. There are still a lot of companies in the Philippines that I admire. Where managers think of the minority investors as if they are also an owner. And those companies, even though but a few, are worth the investments for a lifetime.

Ayala Corp Bonds FAILED

Well, my banker called me and said that the Ayala Corporate bonds are already fully availed. Well that sucks, they are still advertising it on banks but the allocation are already full.

How to Invest in Stocks

How do I invest in stocks? How do you make money in the stock market?

This is probably the first question asked when someone in your inner circle knew that you're into investing. As if its surrounded with an aura of amazement when they realized that you're making most of your income from it. Investing in the stock market have its reputation to be risky, only for the intelligent and lucrative endeavor.

This is also what I thought when I first learned about the stock market. Its risky and I don't want to "gamble" my money in the stock market. Many people killed themselves because they lost their hard earned savings in the stock market. But like anything in this world, anything you thought of at first could be wrong once you make the effort to get to know it better.

I realized that investing in the stock market is fun and exciting. Looking thru the balance sheet of companies is like treasure hunting. Very different from what I used to think during college accounting subjects. Today, looking thru the balance sheet gives me excitement. Because you don't know if this is the company that would make you rich in the future.

To invest in the stock market is very easy. You just need to find a broker. A broker is a company or a person who is licensed to buy and sell shares of companies on your behalf in the stock market. They must be licensed because you don't know how many people gets scammed in this industry. There's a list of licensed brokers on the PSE website.

Once you found a broker, any decision you want to make, buy or sell shares, you have to tell this broker. Before, it used to be a person to person transaction and you have to phone your broker to buy or sell shares for you. But today, most brokers offer the ability to buy and sell shares on their own using an online platform. Which is very convenient indeed.

So, how do you make money in the stock market?

You make money when the share of the company you bought appreciates in value. As an example, DMCI, a publicly listed company in the Philippines, used to trade at P0.50, ten years ago. Today, they trade at around P50.00. If you have P100,000 invested in DMCI 10 years ago, today, your money is now worth P10,000,000. Yes. That is P10 million pesos. A worthy amount to retire.

Dividend Income P21,915.00

Just received a dividend income. Net Amount (Php) : 21,915.00

Cashflow UP +P1,271.00 from Ayala Corporate Bonds

Potentially... Just this day, I reserved a slot to avail the 7 year corporate bonds offered by Ayala. If I will get the slot, I will have an additional P1,271.00 cashflow (net). That would ramp up my current passive cashflow to P16,486.00. I'll get a confirmation by tomorrow. Let's see.

Remember the Things That Inspires You

In life, you will encounter road blocks, confidence shattering obstacles, bone crunching pain and sleep depreciating humiliation. But it is in our power and our responsibility to protect our confidence. Investing may be hard and sometimes you will have to sacrifice some things to meet your goal. But remember that you are doing it for a reason not for anyone but for yourself.

Religion will tell us to be self less. To think of others always. That is good if you are abundant that you can give out things without being detrimental to your health, financial health. But I think, a man who can not swim will also die saving someone drowning. No matter how much will power, kindness or bravery you have, you'll die without doing anything.

Think of your purpose. Make every action you do have a purpose. So you make a good use of your only limited and most precious resource -- time.

And during those times, you will encounter people that will bring you down. And you will have to leave behind some friends that are not anymore in line with your goal. It is time to move on. And maybe, you'll find that it is a lonely path because you are walking alone on the road less travelled.

Remember the things that inspires you. The things that makes your heart burn. A feeling of both love and anger. A feeling of passion.