Presented by:

Juanis G. Barredo
Vice President - COL
• CitisecOnline (COL) is the leading online stock
brokerage firm in the country
• Established in 1999 to level the playing field
for investors by providing low-cost and easy
access to the Philippine Stock Exchange (PSE)
• Managed by experienced professionals in the
industry
• Capitalized at over half a Billion Pesos and
went public in 2006
• Also a member of the HK stock exchange
• PART I: Investing in the Stock Market
• Why Invest in the Stock Market?
• The Benefits of Long Term Investing

• PART II: Easy Investment Program (EIP)

• Cost averaging: Investing made easy
• Getting Started with the EIP
• The stock market is the place
where people can invest in
‘publicly listed’ companies.
• You invest into a company to
participate in its growth and
earnings potential
• You make money through:
• Share Price Appreciation
• Earning Dividends
Investing your money into solid growing
companies potentially offer better returns
over savings instruments and inflation

History
History has
has proven
proven that
that
investing
investing in
in stocks,
stocks,
provides
provides greater
greater returns
returns
than
than most
most investors
investors cancan
earn
earn through
through guaranteed
guaranteed
savings;
savings; plus
plus gives
gives a a
good
good run
run over
over inflation…
inflation…
• The risks of investing in the stock
market diminishes over time, as it
allows you to ride out the
choppiness of markets (volatility)
• It allows you to benefit from the
power of compounding as
gains/dividends are reinvested and
allowed to increase earnings compound
potential
Compounding - The act of reinvesting your
earnings/dividends to accelerate the income
generated by your invested capital
Year Gains off a P100,000 investment P100,000 (earning 7% interest
(earning 7% interest annually but annually with earnings reinvested or
earnings are taken every year) compounded)
1 7,000 7,000
2 7,000 7,490
3 7,000 8,014
4 7,000 8,575
5 7,000 9,175
30 7,000 49,799
Total 210,000 (310,000) 661,225 (761,225)
Choosing quality stocks can dramatically
increase your ability to earn
Selected Stock Price Appreciation versus Inflation 1990-2008

Picking
Picking quality
quality Stocks
Stocks
can
can set
set your
your investment
investment
goals
goals in
in action
action
Pertinent questions: “How… When… Where?
Cost averaging is a personal wealth-building
strategy that involves investing a fixed amount of
money at regular intervals over a long period

Month 1
Buy P5,000 worth of
stock ABC at market Month 2
price Buy P5,000 worth of
stock ABC at market
Month 3…
price
Buy P5,000 worth of
stock ABC at market
price
This technique is designed to reduce market risk
by stretching out the purchase of stocks over
time and effectively keeping your average
purchase cost low!

P5,000
P5,000 will
will only
only buy
buy
less
less shares
shares here
here

P5,000
P5,000 can
can buy
buy
more
more shares
shares here
here
 Sample Cost Averaging Activity
Date of Stock Amount of Stock Price per Share # of Shares* Ave Cost per share
Purchase Purchase (Php)

1-Jun-08 5,000 10 500 10.00

1-Jul-08 5,000 11.75 426 10.80
1-Aug-08 5,000 11.5 435 11.03
1-Sep-08 5,000 11 455 11.02
1-Oct-08 5,000 10 500 10.80
1-Nov-08 5,000 9 556 10.45
1-Dec-08 5,000 7.5 667 9.90
1-Jan-09 5,000 8 625 9.61 Your
1-Feb-09 5,000 9 556 9.54 average
1-Mar-09 5,000 9.1 549 9.49 cost
remains low
1-Apr-09 5,000 9.5 526 9.49
1-May-09 5,000 10 500 9.53
*You buy less shares when prices are high and
more shares when it is low (subject to board lot
regulations)
 Sample Cost Averaging Activity
Bank of the Philippine Islands (Monthly investments of P5,000) Bank of the Philippine Islands (Quarterly investments of P15,000)
 (Cost Averaging down the
road…)
Stock/ Effective Time
Indicator Annual Yield Frame Retire with an Extra 10 Million!

TEL 18.88% 18 yrs

Goal (P Millions) 10,000,000

BPI 16.92% 18 yrs Period (yrs) 21

Return Rate 16.9%
AC 11.16% 18 yrs

JFC 10.7% 14 yrs Monthly Deposit (P) 5,046

Total Investment (P) 1,271,609
Inflation 5.7% 18 yrs
Investment Gain 686%
Allow us to recommend the winners
ƒ We have carefully selected
Premium Growth Stocks
ƒ We filter by looking for ‘GEMSS’
G- Growing industry
E - Earnings visibility/predictability
M - Management credibility
S - Superior products or services
S - Strong balance sheet
Our List of Premium Growth Stocks
ƒ Ayala Land Inc
ƒ BPI
ƒ Jollibee
ƒ PLDT
ƒ SM Prime Holdings
 ƒ Simple and easy to do
ƒ Takes the worry of trying to "time" the market
Benefits

out of the equation

ƒ Tends to reduce volatility risk in any portfolio
ƒ Serves as a good hedge against inflation
ƒ Given a longer period, it works even better
due to the power of compounding
ƒ Only a small amount of money is needed
each period, controlled by investor capacity
 ƒ Takes too long to accomplish as it schedules
investments for the long term
Drawbacks

ƒ May forget a planned order due to the length

of time used
ƒ Does not work for the lump sum investor
ƒ Subject to PSE’s minimum board lots
 Introducing COL’s New EIP Web
Features
Features
 The EIP functions are accessed through the EIP menu under the Trade/Portfolio Tab
New Menu

EIP Sub Menu Click to activate

the EIP Sub Menu
 Use the Add EIP Order function to enter a trade order schedule –once the details are set
Add EIP order
then the scheduler will always alert you two days ahead of a scheduled trade order

COL’s Stock Picks

EIP Order Scheduler
1)Choose you stock
Or choose your own
2)Cash Value (amount to be invested)
3)Period (weekly, monthly, quarterly)
4)Start & End Date
5)Click Submit to enter schedule
View EIP Order
You can review your scheduled orders under the View EIP Orders function

Cancel / Change Your next buy schedule is

Your scheduled order details automatically determined
based on your starting
Filter view by:
All
date and period entered
Active
Cancelled
Expired
Stock Code
 You can review your scheduled orders under the View EIP Orders function
Cxl/Chg

Cancel Option: Change Option:

User can only

change the Cash
Value, Period and
End Date

Enter your password for confirmation

 Two days before an EIP order will be activated, an e-mail reminder will be sent to you to
remind you about the upcoming order
Reminder

You have mail!

7000
 On the day the EIP order becomes active, a message is displayed to the user on the web
site reminding him/her of the EIP order
Day Advisor

AC 7,000

•The reminder will state the EIP Click to activate the Click to bypass the
order details and will give the user buy order entry scheduled order for the
the option to enter the EIP order function interval
immediately or to cancel the entry
of the EIP order.
•If the user takes no action (buy or
cancel), the EIP order will not be
processed.
 If the EIP order BUY NOW is clicked on, the order entry window is activated showing the
EIP Order Entry
EIP option already chosen along with the pre-calculated board lot and best asked price
Values are automatically
filled based on EIP Data but
EIP Option*
can be modified by user
*Note:
•If an EIP order is set off
while the market is in pre-
open, open, or run-off
status, the regular order
entry window is activated.
• If set off while the market
is closed, the off-hours or
ATO order entry is activated.
•An EIP order entered using
the ATO order entry facility
will need the manual entry
of volume and price.
•All EIP orders are still
subject to matching (it may
not be automatically filled)
 The user can track the performance of the EIP records through the EIP Portfolio* page
EIP Portfolio

AC Quarterly 7,000 8/6/2008 11/7/2008 20 301.17 305 76.60

No of EIP
shares

Average
*Note: Buying Price Current Your
Your EIP Portfolio shows that Price Gain/Loss
part of your regular portfolio
that has been purchased for
the EIP
 The regular Portfolio page* will now have an added field to display the # of EIP shares
Portfolio

305.0000 301.1650 20 20 20 76.60 1.28% 6,100.00

6,100.00
76.60 1.28%
21,988.53

*Note: Total Shares No of EIP shares

The user can sell their EIP shares anytime by
using the sell order box and clicking on the EIP
term button; an order to sell your regular portfolio
may flow over to the EIP portfolio if your order
exceeds those bought in the regular portfolio
 1
1
4 steps

4
4 2
2

3
3
 THANK YOU!
To learn more about COL’s Easy Investment Program,
visit our website at www.citiseconline.com/easy or call
our customer hotline at 6-333-777
also
Attend our free “Investing in the Stock Market Today”
introductory seminar held weekly