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.
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