How to Use PinoyInvestor: For Long-Term Investors
To maximize the PinoyInvestor Stocks Portal, long-term investors should focus on the following sections:
- Stock Rankings
- Stock in Focus
- Special Reports
These are the sections primarily based on Fundamental Analysis and, as such, may be relevant only to long-term investors. (Read more about Fundamental Analysis in the PinoyInvestor Academy.)
Short-term investors may still consider these sections but should remember that the information here are long-term in nature and may not necessarily impact their overall trading strategy.
PinoyInvestor has five (5) sets of Stock Rankings to choose from:
- PSEi Stock Rankings
- Large-Cap Stock Rankings
- Mid-Cap Stock Rankings
- Small-Cap Stock Rankings
- Ranking of All Stocks.
PSE index (PSEi) Stock Rankings are made up of companies that are part of the PSE index (PSEi), the market index usually considered as barometer of the Philippine economy. If you’re looking for stocks that are relatively stable and with a good historical track record, better choose PSEi stocks. These stocks are typically for investors with a long-term capital appreciation investment objective.
Our Large-Cap Stock Rankings, meanwhile, is comprised of Large-Cap stocks in the PSE, or those with market capitalization of at least PHP 100 billion. Large-Cap stocks tend to be more stable than any other categories of stocks. Many of them also pay dividends, providing additional income to shareholders. Large-caps are typically suited for investors looking for current income and driven by the goal of capital preservation. Historically, this type of stocks outperforms small-cap stocks during times of recession and bearish periods.
Mid-Cap Stock Rankings include stocks with market capitalization between PHP 40 billion and PHP 100 billion. Mid-Cap stocks are right in between Large-Cap and Small-Cap stocks and tend to be riskier than large-caps but less volatile than small-cap stocks.
Our last category of stocks is the Small-Cap Stock Rankings, comprised of stocks with market capitalization of less than PHP 40 billion. Small-Cap stocks could soon grow to become Mid-Cap or Large-Cap stocks, providing huge upsides in profit, but they are also more volatile and carry additional risk. If you’re willing to take in more risk in exchange for a possible huge price appreciation, Small-Cap stocks may be for you. Historically, this type of stocks outperforms Large-cap and Mid-Cap stocks during bullish market periods but, in recession, they also get pummelled the most.
Finally, the Rankings of All Stocks list all stocks covered in PinoyInvestor (over 80++!) according to alphabetical Stock Code. This is for those who want to see all of the Buy / Sell / Hold recommendations and Target Prices of all the stocks PinoyInvestor covers!
WHICH STOCKS TO CHOOSE? Investors are actually advised not just to hold a single category of stocks in order to diversify their portfolio and to maximize earnings. It would be better to have a good mix of PSEi, Large-Cap, Mid-Cap, and Small-Cap stocks. So depending on your overall investment objective, decide how much percentage of your portfolio you will allocate to PSEi, Large-Cap, Mid-Cap, and Small-Cap stocks!
IMPORTANT! Typically, the Average Target Prices are valid for a few months to 1 year. Do note, though, that the Average Target Prices, as determined by our partner brokers, may change instantly due to major changes in the economic environment or the company’s operations.
Thus, we encourage you to regularly monitor the Stock Rankings, and coupled with the Stock in Focus reports, make smart and informed investment choices.
Although Target Prices normally have a horizon of 1 year, if you stay true to long-term investing, you can reap more financial rewards in the future! Just to give you an example, Megaworld (MEG) used to trade at less than PHP 1.00 in 2005 and is now trading close to PHP 5.00 (as of Sep 2014)!
Target Prices may take some time before they are reached, thus, you will need to have PATIENCE. The market rises and declines as part of its regular cycle. Still, remember that there is NO GUARANTEE that Target Prices will always be reached, but you can count on PinoyInvestor to give you updated recommendations from our partner brokers when major economic and business changes impact the Target Prices of stocks.
Moreover, you might notice that PinoyInvestor’s Stock Rankings (and all other Fundamental Analysis sections like our Stock in Focus reports) do not contain a dictated “Buy Below Price” column. Nor do we have forced buy/sell orders. Why?
We understand that to be truly intelligent and independent stock investors, you must possess the flexibility to decide on your desired profit percentage and entry/exit points.
In the end, to be truly intelligent and independent stock investors, Filipinos should possess the capability to make their own smart investment decisions.
Still, if you want to be guided by a “Buy Below Price,” you can actually apply this very easily in PinoyInvestor! Simply compute the price that is, say for example, 12% lower than our Average Target Price.
For example, if our partner brokers’ Target Price is PHP 10.00, your “Buy Below Price” is PHP 8.80, computed as PHP 10.00 times the quantity (100%-12%) or, simply, 88% times PHP 10.00 = PHP 8.80.
Stock in Focus
Primarily based on Fundamental Analysis, the “Stock in Focus” section shares our partner brokers’ in-depth analyses of a company and explains the rationale for a stock’s Target Price, Buy / Sell / Hold recommendation, and future prospects.
PinoyInvestor’s Special Reports cover our partner brokers’ analysis and opinion on various topics that affect the stock market. These may be sector reports, economic updates, upcoming IPOs, and more!
Lastly, to see these types of reports for specific stocks, don’t forget that each stock in PinoyInvestor’s coverage has its own dedicated stock page!
You can search for them OR you can go to our “List of All Stocks” page to see the dedicated page for your preferred stock!
See how Jollibee Foods Corporation’s (JFC) dedicated stock page looks: