My Maid Invests in the Stock Market by Bo Sanchez 1 | Page 25

So if you have P1M, don’t invest it all in one plop. If the market crashes, you’ll have a heart attack. Even if you know that it’ll go up again in thefuture, it’s still depressing. So why not divide your P1M into five parts—and invest P200,000 every month? That way, if the price goes down, your P200,000 will be buying more shares in the next few months. If the price goes up, you’re still earning very well from your first investments. The important thing is that you can sleep at night. So select two, three, or four companies from the magic list of growth companies below. According to Citiseconline, these are the companies that are undervalued today (meaning: share prices are cheap compared to their real value): Company Name Energy Dev. Corp. First Gen Corp. First Philippines Holdings Security Bank Engineering Equip. Manila Water Co. Inc. Stock Symbol EDC FGEN FPH SECB EEI MWC Target Price P6.70 P16.25 P75.00 P63.50 P4.50 P22.50 Note: I’m writing this in April 2010. This list will change! So when will you sell? Unlike the original EIP where you don’t sell, the EIP Plus has a specific price you’re waiting for. Do you see the target price above? If the price of the share goes very near that target, sell your shares. Keep your earnings and wait for another opportunity to invest again. You may ask, “But Bo, what if it goes higher than the target price?” Don’t be greedy. Better to be safe. Unless Citiseconline analysts set a higher target price for the company, I’ll sell. I’ll be happy with the profits. I won’t be greedy. I’ll wait for other undervalued companies. www.TrulyRichClub.com 26