COL Easy Investment Program

Learn to build wealth the easy way in the Stock Market

CitisecOnline.com… who we are
 CitisecOnline is the leading and fastest-
growing online stockbrokerage firm in the
Philippine Stock Exchange handling about
20% of its number of trades.
 CitisecOnline is the largest capitalized
stockbroker with over half a Billion Pesos in
resources, COL is publicly listed in Philippine
Stock Exchange & is also member of the
Hong Kong Exchange
 CitisecOnline is committed to empowering
the Filipino investor to achieve financial
independence by providing access,
information and education
WHY invest?
Investing is the most effective way
to build your personal wealth and
reach your financial goals! Retirement

Children/
Education

Cost of Living/
Housing
WHY invest?
Inflation measures
Safeguard capital against the rise in the cost
INFLATION! of goods; it is the
rate of which the
I purchasing power
Purchasing power of Php100 stashed N
Year away in 1970* (not invested) of money falls by if
F not invested
1970 100 L
1980 59.87 A
1990 35.85 T
2000 21.46 I
O
2009 12.85
N
* Assuming a 5% annual Inflation
 Invest with Long Term Compounding

Compounding is the
act of reinvesting your
profit to further
increase your profits
over time. Companies
can compound their
growth by reinvesting
their profits into the
business.
 Why invest in the stock market?
• The Stock Market is the place
where you can invest in ‘publicly
owned’ or PSE listed companies.
• You invest into a company to
participate in its ability to grow and
earn profits
• You make money through:
• Price Appreciation
• Earning Dividends
Stock Market Superior Track Record
History has proven that
investing in quality stocks
can provide greater
returns than most
instruments; giving a good
run over inflation…
 HOW MUCH can I invest?*
Method 1:
Conservative Up to 20% of Savings may be invested into
the Stock Market

Method 2:
Aggressive

Compute 100-Age = Max % of Savings that

can be invested
Ex. If I am 35 years old then I can invest up to
65% of my savings into the Stock Market
*These are only suggested percentages based on investors’ capacity to take on risk; as a rule of thumb,
younger investors can take more risk given that they may have a longer period to withstand volatility
Stock Market Investing Simplified:
PESO COST AVERAGING!
 Peso Cost Averaging
Peso Cost Averaging is a personal wealth-building
strategy that involves investing a fixed amount of
money at regular intervals over a long period
Designed to reduce market risk by stretching out the
purchase of stocks over time, buying more when prices
are low and buying less when it is high, effectively
keeping your average cost low

Month 1
Buy Php5,000 worth of stock ABC at
6
market price

5
Month 2
Buy Php5,000 worth of stock ABC at
market price 4

Month 3 3
Buy Php5,000 worth of stock ABC at Ave Cost
market price
1 2 3 4 5 6 7 8 9
Month
 Peso Cost Averaging
Sample Cost Averaging Activity
Date of Stock Amount of Stock Price per Share # of Shares* Ave Cost per
Purchase Purchase (Php) share
1-Jun-08 5,000 10 500 10.00
1-Jul-08 5,000 11.75 426 10.80
1-Aug-08 5,000 11.5 435 11.03
1-Sep-08 5,000 11 455 11.02
1-Oct-08 5,000 10 500 10.80
1-Nov-08 5,000 9 556 10.45
1-Dec-08 5,000 7.5 667 9.90
1-Jan-09 5,000 8 625 9.61
Your
1-Feb-09 5,000 9 556 9.54 average cost
1-Mar-09 5,000 9.1 549 9.49 remains low
1-Apr-09 5,000 9.5 526 9.49
1-May-09 5,000 10 500 9.53
*You buy less shares when prices are high and more
shares when it is low (subject to board lot regulations)
 Peso Cost Averaging
Lest assume you invest Php5,000 a month over a year in two market scenarios

Total Investment = P60,000 Total Investment = P60,000

Market Value = P80,650 (+34%) Market Value = P75,281 (+25%)
Cost Per Share = P20.83 Cost Per Share = P12.75
 Peso Cost Averaging Sample
2-yr Cost Averaging plan to BUY Php15,000
of Ayala Land every quarter

10.00 6.60 6.50 6.40 9.40 10.25 10.50

1,000 SHARES 2,000 SHARES 2,000 SHARES 2,000 SHARES 1,000 SHARES 1,400 SHARES 1,400 SHARES

Total Shares: 3,000 Total Shares: 5,000 Total Shares: 7,000 Total Shares: 8,000 Total Shares: 9,400 Total Shares: 10,800
Ave. Cost: 7.73 Ave. Cost: 7.24 Ave. Cost: 7.00 Ave. Cost: 7.30 Ave. Cost: 7.74 Ave. Cost: 8.10

2 Year Result: TOTAL INVESTMENT: Php 87,450

TOTAL PORTFOLIO VALUE: Php 148,500 (+70%)
 Buying on PSE Minimum Lots
PSE BOARD LOT SYSTEM PSE BOARD LOT TABLE
- Minimum amount of shares that can be bought PRICE RANGE BOARD LOT
determined by a stock’s market price 0.001 to 0.005 1,000,000
- To buy more, you can only buy along the board 0.0055 to 0.01 1,000,000
lot increments (i.e. a board lot of 1,000 would 0.011 to 0.05 100,000
allow you to by 1000, 2000, 3000 etc, but not 0.0525 to 0.10 100,000
1500 shares – as the 500 is called an ‘odd lot’) 0.105 to 0.25 10,000
0.26 to 1.00 10,000
1.02 to 2.50 1,000
2.55 to 5.00 1,000
Ayala Land’s 2-yr Price Range 5.10 to 10.00 1,000
Php5.00 – P14.00 10.25 to 25.00 100
25.50 to 100.00 100
Board Lot Size: 101.00 to 250.00 10
1.02-10.00 = 1,000 shares 252.50 to 500.00 10
10.25-100.00 = 100 shares
505.00 and upward 10
 Cost Averaging
A viable long term plan
Stock/ Effective Time
Indicator Annual Yield Frame Retire with an Extra 10 Million!

TEL 18.88% 18 yrs Invest Monthly Php5,000

# Years 21
BPI 16.92% 18 yrs
Return Rate 16.9%

AC 11.16% 18 yrs Total Investment (P) 1,260,000

Will result in a…
JFC 10.7% 14 yrs
Future Value (P) Php10M+
Inflation 5.7% 18 yrs Investment Gain 740%
Share price history from 1990 to 2007
 The COL
Easy Investment Program
Introducing COL’s EIP
The COL Easy Investment Program is the latest service from
CitisecOnline which makes it easier for our customers to
apply the method of peso-cost-averaging.
Features
•Premium Stock List – have access to our research and
premium growth stock recommendations

•EIP Portfolio – have access to your EIP positions

anytime and track their performance

•Schedule Calendar – plan out your purchases over

time by building a continuing calendar of orders that
will prompt you through Email reminders
 Allow us to Recommend some Stocks
We filter looking for good stocks by Our Premium Growth Stocks:
looking for ‘GEMSS’
 Ayala Land Inc (ALI)
Growing industry
 Bank of Phil Islands (BPI)
Earnings visibility/predictability
 Jollibee (JFC)
Management credibility
 PLDT (TEL)
Superior products or services
 SM Prime Holdings (SMPH)
Strong balance sheet
 Manila Water (MWC)
 COL EIP: Investing made easy
 No need to "time" the market
 Helps you save with only a minimal amount
Benefits

 You can manage your risk over time (as

against lump sum investing)
 You ‘partner’ with dynamic corporations that
compound their expansion over time
 Your investments are kept liquid and can be
turned back into cash quickly if you need it
 Getting Started with the EIP
Log in to our website at www.citiseconline.com and access the EIP functions under the
Trade/Portfolio Tab
EIP Menu

EIP Sub Menu Click to activate

the EIP Sub Menu
 Getting Started with the EIP
Use the Add EIP Order function to enter a trade order schedule –once the details are set
Add EIP order
then the scheduler will always alert you two days ahead of a scheduled trade order

COL’s Stock Picks

EIP Order Scheduler
1)Choose you stock
Or choose your own
2)Cash Value (amount to be invested)
3)Period (weekly, monthly, quarterly, semi-annual)
4)Start & End Date
5)Click Submit to enter schedule
 Getting Started with the EIP
View EIP Order
You can review your scheduled orders under the View EIP Orders function

Cancel / Change Your next buy schedule is

Your scheduled order details automatically determined
based on your starting
date and period entered
 Getting Started with the EIP
You can review your scheduled orders under the View EIP Orders function
Cxl/Chg

Cancel Option: Change Option:

User can only

change the Cash
Value, Period and
End Date

Enter your password for confirmation

 Getting Started with the EIP
Two days before an EIP order will be activated, an e-mail reminder will be sent to you to
remind you about the upcoming order
Reminder

You have mail!

7000
 Getting Started with the EIP
On the day the EIP order becomes active, a message is displayed to the user on the web
site reminding him/her of the EIP order
Day Advisor

AC 7,000

•The reminder will state the EIP order Click to activate the buy Click to bypass the
details and will give the user the option order entry function scheduled order for the
to enter the EIP order immediately or to interval
cancel the entry of the EIP order.
•If the user takes no action (buy or
cancel), the EIP order will not be
processed.
 Getting Started with the EIP
If the EIP order BUY NOW is clicked on, the order entry window is activated showing the
EIP Order Entry
EIP option already chosen along with the pre-calculated board lot and best asked price

Values are automatically filled
based on EIP Data but can be
EIP Option* modified by user
*Note:
•If an EIP order is set off while
the market is in pre-open,
open, or run-off status, the
regular order entry window is
activated.
• If set off while the market is
closed, the off-hours or ATO
order entry is activated.
•An EIP order entered using
the ATO order entry facility
will need the manual entry of
volume and price.
•All EIP orders are still subject
to matching (it may not be
automatically filled)
 Getting Started with the EIP
The user can track the performance of the EIP records through the EIP Portfolio* page
EIP Portfolio

AC Quarterly 7,000 8/6/2008 11/7/2008 20 301.17 305 76.60

No of EIP
shares

Average
*Note: Buying Price Current Your
Your EIP Portfolio shows that Price Gain/Loss
part of your regular portfolio
that has been purchased for
the EIP
 Getting Started with the EIP
The regular Portfolio page* will now have an added field to display the # of EIP shares
Portfolio

305.0000 301.1650 20 20 20 76.60 1.28% 6,100.00

6,100.00
76.60 1.28%
21,988.53
Total Shares No of EIP shares
*Note:
The user can sell their EIP shares anytime by using the
sell order box and clicking on the EIP term button; an
order to sell your regular portfolio may flow over to the
EIP portfolio if your order exceeds those bought in the
regular portfolio
 Getting Started with our EIP
Open an
1 Account
• Fill up the
Open an Account
application form
4 steps

• Provide 2 copies
4 2
of valid ID
Schedule and follow Decide on your • Provide copy of
your purchases over investment amount billing statement
time and frequency
• Fund account:
3 COL EIP - P5,000
Choose dynamic
companies to invest
in
 THANK YOU!
To learn more about COL’s Easy Investment Program, visit our
website at www.citiseconline.com or watch our EIP walkthrough
video at http://www.citiseconline.com.ph/NewEIP/EIPVideo.asp
For inquiries: Call our customer hotline at 6-333-777 or email at
helpdesk@citiseconline.com
Also attend our free “Investing in the Stock Market Today”
introductory seminar held weekly