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.

Volume 3, No.11

May 2012

You Can Sleep in Any Storm

I started investing in the stock market in 2007. You can imagine how catastrophic that was for me. Because in 2008, the biggest economic storm hit the world. It was so big, many economists compared the 2008 Recession to the 1923 Great Depression! Meaning: The last time the economy was that bad was 90 years ago. And my stocks showed it: My stocks were down by 40 percent. Ugh. I remember I had around P3 million in the stock market. It whittled down to P1.8 million. On paper (or on my computer screen), I lost P1.2 million! If it wasnt for my faith, I bet that would have been enough to give me a full-blown depression. Thankfully, I also had wise mentors who looked me in the eye and said, Bo, thats nothing! Forget about it. Keep buying. Now! I did. And one year later, in 2009, BOOM! The stock market soared by 100 percent. Every time theres a dip in the stock market (like what were experiencing now), I like telling this story. If you feel depressed every time you open your Citiseconline page because of all the negative numbers you s e e in your portfolio, relax. Take it easy. Youre okay. Just keep buying. In a month or two, the stock market will turn around and start going up again. Unless, of course, another crisis pops up. Like if the China-Philippine tension escalates, that will be a crisisand the stock market will plunge. Or if the Corona case explodes into political mayhem, that will be a crisis tooand the stock market will plunge. As long-term investors, we LOVE crisis. Because we can buy great companies at cheap prices. So either way, up or down, were good. Remember the Bible story of how the apostles were panicking in the boat when a storm hit them, but Jesus was sleeping in the boat? Thats what we need to learn to do. We need to be like Jesus. We need to learn how to sleep in the storm. May your dreams come true,

Bo Sanchez

P.S. Read below what Mike Vinas writes about our SAM Stocks, especially SMPHif you bought that stock.

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Discount Shopping in the Stock Market

By Mike Vinas Im sure our readers who enjoy shopping were awakened by the mere mention of SHOPPING! Haha! I love using this illustration whenever I try to explain buying stocks at cheap prices. Because investing in the stock market can be as simple and fun as shopping for your favorite apparel, accessories, or gadgets at a midnight sale! So for those who go shopping, imagine walking into your favorite store. You admire the clothes on each rack, the shoes neatly showcased, various shimmering accessories, and more. Then you come close to THE handbag (TV, gadget, or shoes, etc. for the men) that youve always wanted to buy. That handbag that youve dreamt of countless of times, wishing that your partner (spouse or boyfriend) wouldve bought it for you but they dont have a clue that you like this bag or they feel its too expensive. Now, this is probably the 50th time in a month that you visited this store to check out this bag, to see it, to touch it, to pretend you own it (maybe even smell it), and each time you come close to this bag there is a war going on inside your head debating whether you should buy it or not (Im sure, at some point you can relate and you know what Im talking about here. Hehe). Then finally, as these voices are about to explode in your mind, you decide with a little frustration Next time nalang (maybe next time) and you walk away. You then continue walking on that same hall. You see a new store that has just opened. So with curiosity you go in. Then suddenly to your surprise, you find in that store the exact same handbag that youve always wanted to buy, that handbag that youve always dreamt of having on your arm. Except on that store, its at 50 percent off. Now, which would you buy--the handbag not on sale or the handbag at 50 percent off? For the men, (because youre probably the one to make the purchase anyway, hehe) which will you buy? Obviously, we will opt to buy the handbag on sale, at 50 percent off, and THATS EXACTLY WHATS HAPPENING IN THE STOCK MARKET TODAY. The stock market is on sale! The market has gone down and we will continue to see such opportune prices in the coming weeks. Therefore, we can SHOP AT A DISCOUNT to buy more shares of a great and growing company at dirt-cheap low prices, giving us a greater profit potential when prices move back up again. Its actually in declines like these that prompt good buy opportunities to effectively lower the average prices of our stocks. So dont get scared. Dont panic. In fact, we should be excited because youre buying shares at a BARGAIN! Thus, continue buying regularly our SAM Stocks at Buy Below Prices, and overtime you will see the fruits of your cheap purchase. Who wouldve thought that investing in the stock market can be as fun and simple as shopping? It is. So invest, enjoy, and prosper! Now, last May 21, 2012, Bro. Bo came out with a Stocks Alert on SMPH, assuring us that there is nothing wrong with SMPH and that its downturn was caused by the stock dividends it gave out. Stock what? you may ask. Whats a stock dividend? This event actually gives us a good learning opportunity to improve our knowledge of the stock market. So lets discuss what a stock dividend is and how it works.

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SMPH: A Lesson on Stock Dividends

You maybe be wondering why the value of your SMPH shares are down. Dont worry. I want to assure you that nothing bad happened. In fact, this is actually a good thing! A stock dividend is when a company gives out more shares to existing shareholders. It is when a profitable company rewards its existing shareholders as an incentive for investing in their company. To avail of the stock dividend, one must be holding the shares of the company at least one day before the stock dividends Ex-Date. This is the date that represents the cut-off point, wherein no more dividends will be given out to shareholders who just bought the stock on that day or thereafter. Therefore, one must be a shareholder as of the day previous to this date to receive the said dividends. Lets use SMPH as an example. SMPH came out with a 25 percent stock dividend. Its Ex-Date is May 21, 2012. In this case, if you are holding shares of SMPH as of May 18 (the last trading day before May 21), then you are entitled to receive more shares of SMPH for free! This means youre actually getting more shares of a great, stable, and growing company without having to pay anything. Its a freebie! Now, because there are more SMPH shares available in the market, its price will have to adjust to a lower price. This is a natural occurrence due to forces of supply and demand. Thus, in this case it adjusted by 25 percent from the closing price of the last trading day which was last Friday, May 18, 2012. This is what caused the low price SMPH had last May 21, 2012. To compute for this: Formula: Last Price / 1.25 = Reference Price after Adjustment. So for SMPH: 15.88 /1.25 = 12.70 (it opened with a transaction at 12.96) So what you are seeing now in your portfolio is the adjusted market price, but the free shares have not been credited yet. Thats why you are seeing a lower value of your SMPH investment. Again, dont worry. Your new free SMPH shares will be credited to your portfolio by June 20, 2012. This is SMPHs stock dividends payable date. Therefore, by June 20, the number of SMPH shares in your portfolio will increase and by that time will reflect back the true value of your SMPH investment. In reality, in the short term the value of your SMPH investment remains the same. However, in the long term you have greater profit potential when the stock goes up! Because you now have more shares of SMPH! Again, nothing to worry. Whenever there is a stock dividend, whats really happening is that the company is reinvesting the profit they made back into their operations to further expand business: to build more branches, offer more products and services, buy more equipment, etc. By doing this they create a greater potential to make even more profit and they increase the value of the business. Thus, such a reinvestment and possible growth can translate to the stocks market price to go up. So for the us, the investors, we are given more shares through the stock dividend, so that later on as the company grows and increases its market price, then we have MORE POTENTIAL PROFIT to make because WE HAVE MORE SHARES. You can think of it as delayed gratification. You can read up on the following topics to learn more about what just happened. Try visiting: www. investopedia.com and search the following topics: Dividends, Stock Dividends, Ex-Date, Payable Date. This site has a huge arsenal of learning materials (articles, videos, examples, etc.) that are simple to understand for your better grasp of the stock market. Enjoy learning! P.S. We will continue our updates on our other SAM Stocks on our next issue. In the meantime, check out how our SAM Stocks are doing below.

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As of May 23, 2012 closing prices

STOCK AP BPI CEB EDC FPH JGS MBT MEG SMPH STOCK SYMBOL AP Current Price 33.90 67.00 66.95 5.92 64.60 31.40 84.95 2.02 12.70 DATE BOUGHT Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 PRICE BOUGHT 29.78 31.80 29.90 29.80 29.95 29.85 29.95 29.80 30.25 6.53 6.88 6.21 6.10 5.81 6.00 6.21 6.36 5.69 5.78 5.88 5.96 Buy Below Price 32.23 69.57 94.96 7.33 94.09 34.78 93.91 2.58 17.39 PRICE TODAY 33.90 33.90 33.90 33.90 33.90 33.90 33.90 33.90 33.90 5.92 5.92 5.92 5.92 5.92 5.92 5.92 5.92 5.92 5.92 5.92 5.92 YOUR RETURN 13.83% 6.60% 13.38% 13.76% 13.19% 13.57% 13.19% 13.76% 12.07% 12.59% -9.34% -13.95% -4.67% -2.95% 1.89% -1.33% -4.67% -6.92% 4.04% 2.42% 0.68% -0.67% -2.96% Target Price 37.06 80.00 109.20 8.43 108.20 40.00 108.00 2.97 20.00 BUY BELOW PRICE 31.05 31.05 31.05 31.05 31.05 31.05 31.05 32.22 32.23 6.88 6.88 6.88 6.88 6.88 6.88 6.88 7.10 7.10 7.27 7.27 7.33 Action to Take Stop buying for now Continue buying Continue buying Continue buying Continue buying Continue buying Continue buying Continue buying Continue buying TARGET PRICE 33.59 33.59 33.59 33.59 33.59 33.59 33.59 37.06 37.06 7.57 7.57 7.57 7.57 7.57 7.57 7.57 8.58 8.58 8.36 8.36 8.43 EXPECTED GROWTH 12.79% 5.63% 12.34% 12.72% 12.15% 12.53% 12.15% 24.36% 22.51% 14.13% 15.93% 10.03% 21.90% 24.10% 30.29% 26.17% 21.90% 34.91% 50.79% 44.64% 42.18% 41.44% 30.36%

TOTAL EDC

TOTAL

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STOCK SYMBOL FPH

DATE BOUGHT Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Feb-12 May-12

PRICE BOUGHT 63.18 61.25 59.55 56.35 55.25 54.25 62.10 62.10 60.50 63.25 63.00 64.90 71.52 79.55 75.50 72.00 69.05 71.90 68.00 70.60 78.90 88.00 86.00 88.75 70.00 75.50 72.00 62.85 64.55 67.00 65.90 68.10 70.00 68.45 67.00

PRICE TODAY 64.60 64.60 64.60 64.60 64.60 64.60 64.60 64.60 64.60 64.60 64.60 64.60 84.95 84.95 84.95 84.95 84.95 84.95 84.95 84.95 84.95 84.95 84.95 84.95 66.95 66.95 66.95 66.95 66.95 66.95 66.95 66.95 66.95 67.00 67.00

YOUR RETURN 2.25% 5.47% 8.48% 14.64% 16.92% 19.08% 4.03% 4.03% 6.78% 2.13% 2.54% -0.46% 7.16% 18.78% 6.79% 12.52% 17.99% 23.03% 18.15% 24.93% 20.33% 7.67% -3.47% -1.22% -4.28% 11.77% -4.36% -11.32% -7.01% 6.52% 3.72% -0.07% 1.59% -1.69% -4.36% -1.89% -2.12% 0.00% -1.06%

BUY BELOW PRICE 72.42 72.42 72.42 72.42 72.42 72.42 72.42 77.00 77.00 93.18 93.18 94.09 78.88 78.88 78.88 78.88 78.88 78.88 78.88 83.07 83.07 93.91 93.91 93.91 79.00 79.00 79.00 79.00 79.43 79.43 94.96 94.96 94.96 69.57 69.57

TARGET PRICE 90.90 90.90 90.90 90.90 90.90 90.90 90.90 106.81 106.81 107.16 107.16 108.20 93.60 93.60 93.60 93.60 93.60 93.60 93.60 108.00 108.00 108.00 108.00 108.00 97.00 97.00 97.00 97.00 109.20 109.20 109.20 109.20 109.20 80.00 80.00

EXPECTED GROWTH 43.87% 48.41% 52.64% 61.31% 64.52% 67.56% 46.38% 72.00% 76.55% 69.42% 70.10% 66.72% 61.62% 30.87% 17.66% 23.97% 30.00% 35.55% 30.18% 37.65% 52.97% 36.88% 22.73% 25.58% 21.69% 30.48% 38.57% 28.48% 34.72% 54.34% 69.17% 62.99% 65.71% 60.35% 56.00% 52.26% 16.87% 19.40% 18.14%

TOTAL MBT

TOTAL CEB

TOTAL BPI TOTAL

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STOCK SYMBOL JGS

DATE BOUGHT Feb-12 Mar-12 Apr-12 May-12

PRICE BOUGHT 25.75 26.55 34.00 31.40

PRICE TODAY 31.40 31.40 31.40 31.40

YOUR RETURN 21.94% 18.27% -7.65% 0.00% 8.14%

BUY BELOW PRICE 28.83 30.43 34.78 34.78

TARGET PRICE 35.00 35.00 40.00 40.00

EXPECTED GROWTH 35.92% 31.83% 17.65% 27.39% 28.20%

TOTAL SMPH MEG

NOTE: You can still buy SMPH at current prices as it is still below our Buy-Below-Price. We wont post the details of SMPH in this issue and wait for June when the 25% stock dividend will be credited.
Mar-12 Apr-12 May-12 Mar-12 Apr-12 May-12 1.93 1.90 2.26 1.93 1.90 2.26 2.02 2.02 2.02 2.02 2.02 2.02 4.66% 6.32% -10.62% 0.12% 4.66% 6.32% -10.62% 0.12% 2.58 2.58 2.58 2.58 2.58 2.58 2.97 2.97 2.97 2.97 2.97 2.97 53.89% 56.32% 31.42% 47.21% 53.89% 56.32% 31.42% 47.21%

TOTAL MEG

TOTAL

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Top 10 Past 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! STOCKS Lepanto Jollibee Security Bank DMCI Intl Container First Gen Co. Megaworld Nickel Asia Ayala Land Energy Devt Co.
STOCK SYMBOL TIME RECOMMENDED TIME HELD PRICE RANGE YOUR RETURN

LC JFC SECB DMC ICT FGEN MEG NKL ALI EDC

Dec 2010 to May 2011 Mar 2010 to May 2011 Mar 2010 to May 2011 Sep 2010 to May 2011 Sep 2010 to May 2011 Mar 2010 to May 2011 Jul 2010 to May 2011 Oct 2010 to May 2011 Mar 2010 to May 2011 Mar 2010 to May 2011

5 Months 14 Months 14 Months 8 Months 8 Months 14 Months 10 Months 8 Months 14 Months 14 Months

P0.34 to P0.85 P47.50 to P94.45 P53.00 to P96.20 P27.25 to P44.80 P32.40 to P48.70 P9.80 to P14.78 P1.54 to P2.30 P15.00 to P22.40 P11.25 to P16.64 P4.85 to P6.49

150% 98% 81% 64% 50% 50% 49% 49% 47% 33%

(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.

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