Category: Finance

Randell Tiongson’s iCON 2014

Randell Tiongson's iCON 2014

There are so many things we can learn about finance! Things like Financial planning, short-term fund, premium bond fund, assets, investment funds, equity funds, balanced fund, asset management and trust bonds, international fund, unit investment trust funds, money market, investment management, living trust, dividend equity fund, and global Philippine fund is a very long list. Randell Tiongson’s iCON 2014 aims to bring together a huge pool of financial experts who can share their financial knowledge to us.

In Tiongson’s own words, “With a bigger and stronger thrust this year, we are very much excited to bring back iCON to our fellow kababayans.  The turnout from last year was overwhelming seeing that there is much interest and support given not only by the attendees who are in thirst for learning on what vehicle they could put their money in but also for the mentors that are willing to help the bridge the gap through educating these people.  Our goal is to create a paradigm shift and a mindset that whoever you are or whatever class you belong to, you are capable of investing.  Living up to this year’s theme, we say, ‘It’s time we make investing for everyone!”

I just finished reading Randell Tiongson’s book recently.  I truly believe that he and his friends will be able to make us understand all of these things in a simple, easy to understand way.

The Speakers

Randell Tiongson iCON 2014 Speakers

The speakers for iCON 2014 are quite popular in the Philippines financial industry.  If ever, this year will be the first iCON that I’ll be attending. I can’t wait to hear every single speaker’s experience and guidance on how we can change our mindset from being a spender to being a saver to being an investor.

  • Randell Tiongson, RFP – Mr. No Nonsense
  • Marvin Germo, RFP, ECE – Mr. Stock Smarts
  • Jayson Lo – Mr. Younique
  • Paulo Tibig – The Entrep Champ
  • Yeng Remulla – Mr. Productive Pinoy
  • Carl Dy 
  • Edric Mendoza
  • Marvin Fausto
  • Rose Fres Fausto
  • Alvin Ang
  • Jess Uy
  • Dennis Sy
  • Allan Critchett
  • Ricky Espiritu – VP, Bank of the Philippine Islands
  • Ramon Sto. Domingo – Business Development Manager, Sun Life Financial

Program Flow

Randell Tiongson’s iCON is a whole day event.  Boy, how I wish that all tickets include lunch and drinks.  I’m a bit lazy to get up and walk around a bunch of people to find food at the mall.  If you get yourself a VIP ticket which costs Php 2,800 then lunch will be served.  I, however, got the gold ticket so I have to find myself food.  Anyway, that’s fine.  The knowledge that I’ll be gaining from the event is also food especially for my brain and it can be literally food if I ended up being financially stable, hehehe!

Look how meaty the program is!  I can’t wait to join this.  I’m positive I’ll get out of the event with full of information and pumped out to fulfil my financial goals!

Host: JM dela Rama

08:30 AM Registration
09:30 AM Introduction Why you should be investing (Randell Tiongson)
10:15 AM What type of Investor are you? Understanding Financial Behavior to Become an Effective Investor (Jayson Lo)
10:45 AM Stock Market Essentials: Must-Knows as a Stock Market Investor and Trader (Marvin Germo)
11:30 AM Trumping Volatility through Portfolio Construction (Ricky Espiritu)
12:00 NN Lunch
01:00 PM Economic Outlook: How to take advantage of the economy’s progress (Alvin Ang)
01:30 PM Power of Protection (Ramon Sto Domingo)
02:00 PM Networking & Coffee Break
02:30 PM Global Investing Basics: Who are Qualified to do Investing Globally? (Allan Critchett & Jess Uy)
03:15 PM Entrepreneurship or Real Estate Investing: Which Tool is Best for You? (Paulo Tibig, Yeng Remulla, & Carl Dy)
04:00 PM Family Investing 101: How to Get the Family involved and Benefit from Investing (Edric Mendoza, Marvin Fausto, & Rose Fres Fausto)
04:45 PM Rich for Life: Key Principles to Living a Rich Life (Dennis Sy)
05:15 PM Closing Remarks

More Details about the iCONS 2014 Event

Date: May 17, 2014
Time: 08:30am to 05:30pm
Where: Function Room 4, SMX Convention Center, Pasay City
Free seating based on ticket level.
Ticket Rates:

  • VIP   –   Php 2,800
  • Gold   –   Php 1,800
  • Regular   –   Php 1,000
  • Student   –   Php 500

How to get tickets: 

  1. Register at
  2. Pay ticket/s via bank (BrandSpeakAsia’s BPI Account
    Bank Branch: Makati Main, Account Name: BrandSpeakAsia, Inc., Account Number: SA 000019-2747-48) OR via check (Payable to: BrandSpeakAsia, Inc.)
  3. Send a scanned copy of deposit slip to for bank payments.
  4. Send check payments to Unit 610 6th Floor VGP Center (formerly The Manila Bank Building), 6772 Ayala Avenue Legaspi Village, Makati City 1229, Philippines).
  5. Get ticket/s by the Conference Secretariat office at Unit 610 6th Floor VGP Center (formerly The Manila Bank Building) OR at the Registration station on the day of the event.

See you all there! 🙂

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Make the Best Happen with BPI Express Assist Online

BPI Express Assist Online

I’ve been trying to keep this as a secret.  

For some time, I’ve been selfish.  I knew that not a lot of people know this trick.  Whenever I need to transact something at BPI, I would just go to this ‘secret’ feature.  I go inside the bank, see a lot of people waiting for their number to be called.  Some have to wait for ten people before they can be served.  Me? I don’t need to spend a lot of time waiting because I have my own special queue.  I want to keep this secret forever.  Yes, forever.

But then again, is that a Christian-like thing to do?  No.

After meeting some friends from BPI who were proudly sharing this nifty feature, I felt guilty.   I said to myself that I should learn to share.  Oh well, my conscience won.  So here I am… okay, I’ll share now… my little bank secret…

BPI Express Assist Online!

What is BPI Express Assist Online anyway?  Why do I like this service so much that I spent a few weeks keeping the information to myself?

If you’re a type of person who’s on the go and wouldn’t want to waste time just waiting, standing, or sitting doing nothing, even just ten minutes is important to you, then you’ll find BPI Express Assist Online as a must have!  This is also especially great for people who are organised with their schedule and of course those who has a tight one.

With BPI Express Assist Online, you can shorten waiting time in the bank.  How?  By setting an appointment for the branch of your choice on BPI Express Online (

Here’s how:

  1. At the website (, under other services, choose BPI Express Assist Online

BPI Express Assist Online at bpiexpressonline

  1. Choose Schedule an appointment

BPI Set an appointment online

  1. Choose the bank where you want to set the appointment to (BPI or BPI family bank), choose the city where the bank is in, choose the branch, fill in the date of your appointment, select the appointment time, and lastly click confirm.

BPI Express Online appointment online

  1. Choose the type of transaction you want to do: deposit, withdrawal, encashment, & bills payment.

bpi 1

  1. Put your account number, currency, and amount.

bpi 2

  1. You’ll see your transaction in the screen.  If you want to transact some more, then choose another transaction type.  Once you’re done, click confirm.

bpi 3

  1. You’ll see your electronic queue number.  Just show up at the appointment schedule and wait for your number to be called.  It won’t take long 🙂

bpi 4

 Hayyyy, I finally shared the secret… Happy banking! 🙂

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Get up to 5% rebate with EastWest EveryDay MasterCard

EastWest EveryDay MasterCard

Today, I learned about this new credit card, the EastWest EveryDay MasterCard!  It gives you up to 5% cash rebate on essential purchases like supermarket, gasoline and drugstore.  5% is really a big deal nowadays!

For you to avail of the 5% rebate,a simple condition is for you to spend at least Php 10,000 on non-essential items like clothes, dining and hotel accommodation.  If you spend Php 5,000 to Php 9,999 then the rebate for essential items is 3%.  Lastly, if you spend below Php 5,000, you get a rebate of 0.5%.

Here’s a visual presentation on how the EastWest EveryDay MasterCard works:

Eastwest Rebates

I like that you don’t need to bring cash with you all the time and just use a credit card for payment.  Aside from that, that card seems to serve as a discount card for essential things like supermarket, gas & drugstore purchases!

If I think about my spending habits, I would be able to maximize the benefits of the EastWest EveryDay Master Card.  The 5% cash rebate would be easy since I often go to the mall to shop for clothes, shoes, bags or when I eat out at restaurants.  I’m pretty sure I can spend more than Php 5,000 on food alone so it wouldn’t be hard for me to get the rebate for my essential spend.

Lastly, you do not need to redeem the cash rebates!  Your cash rebates will be automatically credited to your EastWest EveryDay MasterCard account once you accumulate Php 200 worth of it.

Sounds cool?  Then you can head over to EastWest Bank website and get yourself an EastWest EveryDay MasterCard!

EastWest EveryDay MasterCard
To Apply:
EastWest FaceBook Page

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Real Life Value Investing Example (Philippines Setting)

Finance Dude

As promised from the previous article, here is one real life example of applying our short discussion to real life scenarios:

Pepsi Cola Philippines Inc. (Ticker Symbol: PIP)

Listed on February 1, 2008 on the Philippine Stock Exchange, Pepsi Cola is a company most people are familiar with.  It listed with an IPO (Initial Public Offering) price of P3.50.  The Summarized Balance Sheet as of June 30, 2007 is as follows (figures are rounded off for simplicity):

Total Current Assets P2.3Billion
Total Non Current Assets     4.5Billion

Total Current Liabilities           P3.2Billion
Total NonCurrent Liabilities   0.3Billion

Capital Stock P0.5Billion
Additional Paid in Capital   0.05Billion
Retained Earnings   2.75Billion
Cash from the IPO    4.0Billion
TOTAL NET BOOK VALUE or Stockholders’ Equity After IPO P7.3Billion

Market Capitalization After IPO (P3.50 x 3.68Billion shares) P12.9B

Market Capitalization Formula=Price per share x Outstanding Shares
During the IPO: the Market Capitalization is larger than the Net Book Value It is selling about 1.8 times its recorded value on its balance sheet, as calculated below:

Price to Book: (12.9B/7.3B= 1.8x)

Price to Book Formula=Market Capitalization Divide by Net Book Value

Let’s look at the 2007 Net Income

NET INCOME (for one year ending June 30, 2007) P1Billion

Let’s compute for (trailing) P/E

P/E: P12.9B / P1B = 12.9x

P/E : stock price per share divided by earnings per share (or market cap divided by total net income)

This means that if we buy at the IPO price of P3.50 per share and we expect to have the same 2007 Net Income in the future years, we’ll recoup our investment in about 13 years. Or put in another way, this could give us a return of about 8% per year (1 divided by 13).  This assumes that earnings do not grow or do not decrease per year.

Let’s now look at the dividends:
According to its IPO prospectus, it will have a dividend policy of paying off 50% of its net income as dividends.  So in this case, if it makes 8% a year, it will pay about 4% a year in dividends. You could get 4% return on your investments. This is better than time deposits but less than most long term government bonds.

(An IPO prospectus or red herring tells the public the important information about the company to enable the public to decide whether the IPO is a good one. Of course, I rarely know of investors who read it beginning to end before subscribing. Reading it should give you an advantage.)

Based on the IPO price, it’s an average investment but not an excellent one.

On the day of the IPO, it opened at P3.30 and went as low as P2.90. It traded above P2 until September 2008.  Then the sub-prime crisis came. Most investors panicked, selling irrationally the stocks they had bought just a few months ago. Starting October 2008 the price fell below P2, it even went below P0.70 and traded below P1  from late October 2008 to late April 2009. (Honestly, I didn’t think people would less likely to drink Pepsi products just because there’s a credit crunch going on.)

Although the prices went crazy, the business did not. Let’s look at the Financial Statements for the Fiscal year ending June 30, 2008. (A business year that ends on December 31 is called a Calendar Year when it ends any other month its called Fiscal Year)

Pepsi-Cola Products Philippines Inc.
Balance Sheet
June 30, 2008

Total Current Assets P2.5Billion
Total Non Current Assets     5.5Billion

Total Current Liabilities           P2.3Billion
Total Non-Current Liabilities   0.40Billion

Capital Stock P0.5Billion
Additional Paid in Capital   1.2Billion
Retained Earnings   3.5Billion

Market Capitalization at P1 (P1 x 3.68Billion shares) P3.68Billion
Price to Book (3.68B / 5.3B = 0.69x)
The company is selling P0.69 for every P1 you’ll get using recorded book values. Based on the book value you’ll get about 30% discount.
We can also observe that the company has basically no long term debt. Long term Debt to Total Assets is just about 5% (0.40B / 8B). Long-term debt to equity is just about 7.5% (0.4B / 5.38B)

NET INCOME (for one year ending June 30, 2008) P0.76Billion
P/E Ratio (3.68B/0.76B = 4.84x )
Although the Net Income went down, and assuming it stays low, you still get a good deal.  Here’s why: It would take less than 5 years (about 4.84 years) to recoup your capital if you invest at current prices (in this case P1) and faster if earnings grow. Now based on the IPO prospectus the reason for the IPO was to pay off the company debt and to expand. A company would not normally expand if there would be no room for more demand that is foreseen.

Dividends: The company has a policy of distributing half of the income as dividends.  This means you could get a dividend return of about 10% a year assuming stock prices don’t go up soon.  You would be paid about P0.10 on your P1 while you wait for price to go back up to its right value.

The risks are:

  • Since it’s a bottling company, it could have increased manufacturing costs that cannot be passed on to buyers immediately.
  • Its license may be revoked. (This is unlikely since Quaker Global owns almost 30% of its shares)
  • Poor management. (President owns about 20million shares and no changes in management is seen in the immediate term which means we could expect a similar performance from previous years. Net income should be about P600million to P1billion in the next few years)
  • People stop drinking Pepsi Products (Although this could have big impact over the long term, in the next few years, consumers will typically have a similar consumption habits for the past years.)

What happened:
Starting May of 2009, it traded above P1 and never looked back. On October of 2009 it went as high as P2.50. If you have bought the stock below or near P1 and held it, you could have made at least 100-160% of your investment in less than a year.

I know you might think it can’t be done. But you can do it too. With a little analysis and a commonsense approach, it’s doable. As a matter of inspiration, I did it and so can you!

P.S. Why I chose it: I understood the business. I understood the financial statements. I know the risks and the rewards. The sell-off was not due to the problems of the company but mainly systemic in nature. (Systemic means all stocks in the exchange are simply being sold. People just want to get out.) Of course, I could have picked other stocks which are cheaper and has more growth and better prospects. Although, I did pick some others I chose it for the abovementioned reasons.

Disclosure: I currently do not own stocks mentioned above anymore. This is not an advertisement of the product or the stock. )

About the contributor:
Finance Dude
The writer is a financial planner, investor, speaker and a self confessed cheapaholic. (Cheapaholic- a term he invented to mean someone who is addicted to being very cheap).  Send in your questions.  He will try to answer any questions you might have, preferably on finance and money matters.  Although he does not object to questions on love and relationships, he never had one and due to his extreme cheapness, will probably never have one (In case you’ll send it mistakenly, he promised to forward it to HeaRty).

Disclaimer: Advice posted in this portion is merely opinions and views of the writer.  It does not constitute formal advice.  The writer will not be responsible for any of your gains or losses. If symptoms persist, contact your trusted financial planner.

Risk Management

Finance Dude

Why of all the topics of investing should we tackle first this thing called Risk Management?  Well, to start I’d like to quote two men.  The first from one of the top three richest man and another is one who was successful during the recent economic turmoil.

Rule Number 1: “Never lose money.  Rule Number 2: “Never forget rule Number 1.” –Warren Buffett

This is interesting.  One of the richest investors does not look at how much he will make at first.  But he wants to make sure of not losing first.

Another famous billionaire investor, who had made a good amount of money for his clients when most was losing money during the crisis, has this to say:
“I really picked up my investment philosophy from Marty and his father, Joseph Gruss.  He had two sayings that guided me going forward.

The first was: Watch the downside, the upside will take care of itself.  That’s been a very important guiding philosophy for me.  Our goal is to preserve principal, not to lose money.” —John Paulson

In investing before anything else, always look at the risks and downside first.  Focus on
Return OF capital first before even asking for return on capital.  Ask the following questions:

  • What are the risks?
  • How likely are the risks happening?
  • How can you protect yourself from the risks?

You can even classify risks in different classes.
Put another way, before flying high; make sure your landing gears works!

You may disagree and say, isn’t it that low risk means low return and high risk, high return? Well generally that is what common sense taught in business schools.  But low risks and high returns scenarios do happen from time to time.  Examples abound as during the recent recession, stock prices fell down when the value of the business didn’t.  Some companies sold for less than the net cash on their balance sheet.  What does this mean?  Let’s say you’re friend has a restaurant called Good Food Restaurant with the following assets and liabilities:

Cash P100,000
Receivables 10,000
Kitchen Utensils 50,000
Furniture 40,000

Total Assets P200,000
Liabilities 10,000
Net Worth P190,000

He is selling the business (including the cash) for P60, 000.  Would you buy it?

Again let’s see our rule number one. Will we lose money here? Maybe there’s a catch. So we ask around, we look at the financial statements, we check out for any lawsuits or problems.  We don’t see any.  I think we just had ourselves a good deal.  You pay P60, 000 and you get at least P90, 000 in cash. (P100,000 of cash less the liabilities of P10,000).  We will make at least P30,000.  You might tell me this doesn’t really happen.  An individual might not do it.  But it happened when supply outnumbered demand in the recent economic turmoil.  In following series, I’ll show you a real example of something similar.

About the contributor:
Finance Dude
The writer is a financial planner, investor, speaker and a self confessed cheapaholic. (Cheapaholic- a term he invented to mean someone who is addicted to being very cheap).  Send in your questions.  He will try to answer any questions you might have, preferably on finance and money matters.  Although he does not object to questions on love and relationships, he never had one and due to his extreme cheapness, will probably never have one (In case you’ll send it mistakenly, he promised to forward it to HeaRty).

Disclaimer: Advice posted in this portion is merely opinions and views of the writer.  It does not constitute formal advice.  The writer will not be responsible for any of your gains or losses. If symptoms persist, contact your trusted financial planner.