SMPH -will it break out soon?

SMPH Chart as of 8-22-14

Chart courtesy of COL Financial




What does the chart say?

Price is very near if not at the resistance level.  We see a hanging man candlestick,usually it's a reversal sign especially on uptrend mode.

Indicators:

Resistance -approx. 16.66
Support 1-  16.00 -SMA 20 line
Support 2-   15.79

MACD - +
RSI - near overbught
CCI - overbought


We can Buy when it breaks out of RESISTANCE, as long as the new support when hold. Sell if it breaks the new support.
If it cannot break the current resistance and it  reverses buy near the identified support/s.

**Please note that materials contained in this article are for educational purposes only, it is not a recommendation to BUY or SELL any security. How the information would be used would be at the discretion of the reader.

 

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Do you know that only 2% of Filipinos are financially independent by the age of retirement?

Why do you need to plan for  your retirement?

Based on survey only 2% are financially independent by retirement age, so what happens to the 98%?
Looking at the table above, 45% depend on their relatives, 30% rely on charity and 22% continue to work.


Please do not join the 98% of the retirees, plan for your retirement early while you still have enough time !


Now, how do we compute for the right numbers?

Let's see the situation below:

Dear Finance Maverick,

I am 45 years old, male and head of the family. My monthly expenses are around 50,000.00 pesos a month. I want to prepare for my retirement. I want to retire at age of 65. How much money do I need to save to be able to live comfortably when that time comes?

Thanks,

Mr. Anonymous

TABLE 2

After 20 years, cost of living of 600,00.00 per year will become 1,591,978.62 per year because of 5% inflation. Please see above table 2.0


Now if the retiree will still live  up to 80 years old , that's 15 more years. We will multiply  1,591,978.62 by 15 years,  then we will be needing  23,879,679.40.( Inflation not factored in  anymore since 15 years is just an assumption)



If he had other assets by the time or retirement, let's say retirement money from employer  amounting to 3.0 M plus 2.0M  other type assets, then we can  deduct 5.0 M from 23.979 M, net amount will be needing is 18.979 M.  

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PCOR Chart as of 8-22-14

PCOR suffered a big decline from 12.70 to 11.62, down by 8.50%.

Currently the price is located the at support. If you are already itching to buy this stock, you can buy near the support, as long as this support (11.60) holds and sell if it breaks.
If not let's wait for a clear reversal before we enter.




Range between 11.60 - 12.22, bigger range 11.60 - 12.84.
Resistance points 12.22 and 12.84 which are also our target points.

other indicators:

RSI - OVERSOLD
CCI - OVERSOLD

Analysis done by Finance Maverick Philippines. 

Please note that materials contained in this article are for educational purposes only, it is not a recommendation to BUY or SELL any security. How the information would be used would be at the discretion of the reader.

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AP breaks of out consolidation!

Chart by COL Financial as of 8-20-14

2 year chart

Looks a like cup with and handle in the making or another rounding bottom in the making?

After breaking out from the 38.00 pesos resistance, there was a gap up  the following day with a gain of 1.3% and the price closing at 39.00. Next resistance points will be 40.00 and 42.00.

New  support  is at  38.00 and major support at 36.00.


The price breaks out of long consolidation of the 36.00 to 38.00 range. With this break out, we expect it to trade between 38.00 to 40.00 as long as the 38.00 support holds.Please see chart below highlighting the consolidation time frame.



6 month Chart

Please note that materials contained in this article are for educational purposes only, it is not a recommendation to BUY or SELL any security. How the information would be used would be at the discretion of the reader.

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PGOLD downtrend finally slowing down! chart as of 8-19-14

Everybody seems to be talking about PGOLD.  Yesterday, we thought that it will already bounce from downtrend. The price went as high as 35.30 only but went down further to 34.20.

After 4 days of decline, price went down by approximately 18.10%
or approximately 7.56 pesos from its previous psychological support. 

We would like to see a reversal soon, if not today!  

If we can just can get at least half of the 7.56 which around 3.78, that's around 11.05% (3.78/34.20).Assuming it reverses starting today.


Let's see if we can achieve this in few days from now ,if it bounces back starting today!

 **Please note that materials contained in this article are for educational purposes only, it is not a recommendation to BUY or SELL any security. How the information would be used would be at the discretion of the reader.

  

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MERALCO (MER) Chart as of 8-18-14

MER - looks like forming a new price range above 270.00. Price "closed"today at 272.00 up by 1.49%.

What does the chart say?


Price breaks the 270.00 resistance - triggers BUY signal.
Price also breaks above the 200 Simple Moving Average - BUY signal
SMA 20 Line crosses the SMA 50 Line and on upward slope- bullish , BUY signal

Target Price /Resistance :  280,290
Support - 260,250 if  the 270 support is broken

Buy near 270, sell if 270 support breaks. Let's see if we can achieve our initial targets.

Please note that materials contained in this article are for educational purposes only, it is not a recommendation to BUY or SELL any security. How the information would be used would be at the discretion of the reader.

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Insurance and retirement plan rolled in to one!

Hi Finance Maverick,

I am 30 years old, male, I want to protect my family just in case something happens to me. I  also want to build a retirement fund for myself. I want to have with life insurance with 2.0 million coverage and at the same I want to accumulate 5 million pesos for my retirement fund at age 65.    

Are there any financial instruments in the market that could help me achieved my goals?

You can inquire about the Variable Unit Linked Insurance available in the market. It is a comprehensive product that combines both insurance and investment into one (Insurance plus mutual funds). Part of premium payments goes to insurance and part goes to investments. These investments are being managed by fund managers.

 What is mutual fund? The  Investment company pools the assets of small and large investors. Funds are invested in stocks, bonds or combination of both based on their risk profile.

Financial goals:

1.       Insurance coverage              : 2.0 Million pesos

2.       Retirement fund  at  age 65 :  5.0 Million pesos

 VUL product to match YOUR DESIRED GOALS: 

46k includes excess 

** Note: there are also payment terms shorter than 20 years like 15, 10 and 5 years based on other    VUL products. 


Projected Retirement  Fund Value at  age 65 years old.is between 1.8 M to 8.57 M, depends on the fund performance.

At 4.0%  average yield we can achieve  1.8M retirement fund
     8.0% average yield we can achieve 5.17 M retirement fund
     10.0% average yield we can achieve 8.57 M

## We are just assuming that yield will be at 8.0% , please see table below.


**Premiums and performance vary from company to company.

** Note: yields are not guaranteed, But based on historical performance, it can perform better than 10% ( equity and balanced).

You can ask the Financial advisors from companies they represent for the actual performance of their funds.

Note: 5.0 Million pesos fund  

 Fund performance of equities,bonds and balanced also varies.


**If case something happens to the insured, beneficiaries get the fund value plus the insurance coverage.

E.g.
 Fund value during time of death, let's say 8.0M, beneficiaries get 10.0 M (8.0 +2.0).



For additional information, please contact your financial advisor, or  you can write the author for consultation.

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RRHI as of 8-11-14

RRHI  is moving sideways after breaking  its  upward trend line. We see buying point near 67.00 and selling point near 73.00.

Let’s see if this will happen.

Chart by COL Financial

Support – 64.75

RESISTANCE – 73.06

RSI at 40.00

MACD - both lines still below 0

Sell if it breaks the 65.00 support

Please note that materials contained in this article are for educational purposes only, it is not a recommendation to BUY or SELL any security. How the information would be used would be at the discretion of the reader.

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CIC one of the best performing stocks of the year!

CIC is one of the best performing stocks of the year.

If you bought this stock on the first trading day of January at 24.95 and still holding this up to now, your gain now should be around 110% at closing price last price last Friday at 52.50.

First half earning is up by 346Million or up by 45%.

ROE as of 2013 was 22.3, it means it has good fundamentals. 

(Data source: COL Financial Research- ROE, earning )

Please note that materials contained in this article are for educational purposes only, it is not a recommendation to BUY or SELL any security. How the information would be used would be at the discretion of the reader.

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MWC chart as of 8-7-14

MWC finally broke out of the 27.00 psychological resistance.  Let’s see  if it can sustain the uptrend in the next few days. In order for that to happen it should not break  the 27.00 support.

Looks like it formed a cup with handle pattern.  

Chart By COL Financial 

Are we looking TP at  least  29-32 ??

Support  1- 27

Support 2 – 25

RSI – breaks out

Volume – not that significant during break out

Sell if the 27.00 support breaks

Please note that materials contained in this article are for educational purposes only, it is not a recommendation to BUY or SELL any security. How the information would be used would be at the discretion of the reader.

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PSE Index as of 8-6-14

PSE i is having a hard time breaking out the 7000 resistance. It tried last July 7 and Aug 4 but failed to break out. Index needs break out 7000  points in order to go a higher range.
Right now range is 6800- 7000.

Good entry is near 6800 and selling point at 7000 at the moment.

Resistance- 7000
Support     -6817

Please note that materials contained in this article are for educational purposes only, it is not a recommendation to BUY or SELL any security. How the information would be used would be at the discretion of the reader.

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How do I plan for my child's education?

Dear Finance Maverick:

I want to send my son to one of the top universities in the future. He is currently 7 years old and as early as now, I want to be able to prepare for it. 

Based on my inquiry, the current tuition of my desired university for him is around PHP 80,000.00 per semester. Now knowing this information, how much do I need to save and invest yearly? Can you help me estimate the cost of his tuition by the time he enters college? 

Answer:

Usually tuition fee increase ranges from low of 8% to as high as 12% per annum.  

For calculation purposes let’s use the middle range which is 10%. Your son is currently 7 years old, based on the K-12 program he will be entering college at age of 19 years old, which is 12 years from now.

Kindly see the table below.

 

Based on the table, we see that you need to prepare for Php 2.33 Million for your son’s college education in the future.

You have to set aside PHP 99, 200.00 pesos per annum for 12 years at investment yield of 10% to achieve your goal. 

Please see the corresponding amount that you have to save and invest in case you get a yield lower than 10%.

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Do Single People Need Life Insurance?

Question: I am 27 years old, male, single but supporting my parents, do I need a life insurance?

Scenario # 1

Life insurance is an income continuation in case of untimely death.  Just think what will happen to your dependents just in case something happens to you.

Let’s assume that you are giving your parents PHP 10,000 a month, that’s PHP 120,000.00 per annum. If you were insured by PHP 1 million, then something happens, it will take them 83.33 months or 6.94 years to consume the money they got.  

This does not include final expenses.

Scenario #2

Let’s consider the final expenses:

Hospitalization:          300,000.00

Burial and Funeral:     300,000.00

Miscellaneous:           100,000.00

Total:                        700,000.00    

Insurance proceeds 1,000,000.00 

Less                         700,000.00 

Net Proceeds            300,000.00 

Taking into consideration that you give your parents PHP 10,000 a month. Let's compute how long the net proceeds will last.

Net Proceeds                              300,000.00 

Divided by Monthly Contribution   10,000.00

Equals                                                   30

This simply means the money will last for 30 more months or 2.5 years. 

Imagine if you were not insured, your loved ones will shoulder your medical and final expenses. Instead of leaving something valuable to them, you ended up being a burden instead. 

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