Stocks Update

Guidance for Stock Market Investing Exclusively for TrulyRichClub Members Note: To understand the Stocks Update, first read Bos Ebook, My Maid Invests in the Stock Market. Click here www.TrulyRichClub.com to download now.

Volume 5, No. 6

April 2014

Simple Is Better Than Smart

Our problem? Were dazzled by so-called brilliant people. Were not only dazzled, were intimidated. We dare not even ask questions. As long as a guy is dressed well, looks confident behind his spectacles, and spouts three-syllable words that you dont hear oftenthats itwere hypnotized. In the stock market, its the same. A guy tells you, Today, I bought 30,000 shares of XYZ stock at P0.56 centavos, and five hours later sold it for P1.78. In five hours, I earned P36,600. Cool, right? You drool. You wipe the saliva off your shirt, but your eyes are fixated on this god in front of you. You sigh, Wow, hes so smart. Or is he? But heres my big, bold, bodacious DARE. Talk to this smart guy 10 years from now, after you quietly and consistently followed TrulyRichClubs SAM (Strategic Averaging Method). And over a cup of coffee, compare your total money in the stock market. Believe me, theres a 95 percent chance youll have MORE money than this very smart guy. Why? Because Ive come to realize that in life, many times, simple is better than smart. Let me give you an example from the US. In 2003, if you bought a low-cost S&P 500 index fund and left it alone (which I dont recommend, but this is just an example), you would have earned a 97 percent return by 2012. Thats wonderful. (Note: An index fund means its just a basket of stocksno trading involved.) Meanwhile, the average very smart fund managers of very professional hedge funds, who have PhDs behind their names, lost 4.7 percent. Its too shocking, I need to clarify that for you. For nine years, these fund managers did not gain a cent. Worse, they LOST 4.7 percent. I repeat: Simple is better than smart. My last example, closer to home. In 2013, the performance of our TrulyRichClub recommended stocks BEAT many of the biggest mutual funds in the Philippines. Reason? These fund managers invested 10 percent (or thereabouts) of their funds into small mining companies that didnt pan out but took a nosedive. And that 10 percent brought down their performance. We NEVER do such things in the TrulyRichClub. Were boring. Were simple. Were goooooood. Arent you glad youre in the TrulyRichClub? May your dreams come true,

Bo Sanchez P.S. Do you want to learn my secrets in how I write my powerful salesletters? And thereby boost your sales by 500 percent? Its easy if you know my formula. For details, go to www.TrulyRichClub.com/SalesletterVideoSeminar.

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Q & A with COL Chairman Edward Lee for March 2014

Bo: Im honoured to be with my mentor, Chairman Edward Lee. Your mentor as well. Edward, good morning. We are to give a very brief explanation on whats happening in the market and to encourage our members. Edward: From the time we discussed this, around mid-February, the market was 5,800 or 5,900. The market has rallied a lot since then. Weve hit 6,550. Bo: Were talking about the index of the market. When we talked to Edward it was 5,800-5,900 index. Thats the general performance of the market. Now its Edward: 6,350 to 6,400. Bo: Thats a huge jump. Edward: Thats right. Thats correct. So the market has gone up a lot. So if you think about it, its 8 to 9 percent already on the index. Most of the individual stocks have done well. Of course, prices have gone up a lot so you might see some profit-taking coming in. But were still sticking with the end of the year number, which is as we discussed is 6,900. We believe that 5 percent risk rate will stay there. This year the interest rate will probably stay at this late already. The US market and the Japanese market, were seeing some profit-taking also going there. And of course, because of this Ukraine thing, the Russian market and the China market has gone down a lot. They are in fact testing new low already. So we might see some volatility in the next few days. Its a good opportunity for us to buy more shares when it reaches those levels. Bo: Every time Edward says profit-taking, that means people will be selling their shares so the prices will go down. So from 5,800 to 6,500. Were looking at 6,900 in December perhaps, but the trip from 6,500 to 6,900 is not a straight line. Were gonna see volatility, profit-taking? Edward: Thats right. Bo: We are in an overbought situation? Edward: Thats right. In technical terms, we call it overbought because from 5,800 to 6,500. Its getting high already. So 6,200-6,300 Bo: It will dip again? Edward: Yes, it will dip again. For most of the TrulyRichClub, the continuous buying is very critical. They should stick to the Buy Below Price so they dont buy too expensively. Bo: Thats our magic, buying below that price. Edward: So you should have some room, 15 percent to your target price. I think this big move that happened last month should do very well for most TRC members. Bo: In fact, I think February, January, December, people were afraid. Oh no, my portfolio is down, lots of red. Now they are a little bit more positive. Oh so thats what Edward meant. Thats what it meant to keep on investing during the low times. Now all that we have invested has gone up.

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The US market and the Japanese market, were seeing some profit-taking also going there. And of course, because of this Ukraine thing, the Russian market and the China market has gone down a lot. They are in fact testing new low already. So we might see some volatility in the next few days. Its a good opportunity for us to buy more shares when it reaches those levels.
Edward: So the key in investment, thats why we call it an investment program, is really to continue deploying, to continue to invest during difficult times. So when the market recovers, youll benefit from it. But if it has issues already, stop buying. But you know, continue buying the rest and when it reaches the target price, we will advise. We have stop buying because its not 15 percent on to the target price. In some issues, there might be some upgrades because theyve done very well also in the last two quarters. Bo: Last question before we end, maybe a lot of people are asking about this and we receive email about this. LRI. Theyre asking, were happy with the other stocks but why is LRI lagging? Edward: The reason is because by the end of the year, they should settle the preferred convertible which they issued 20 years ago. So its about 1.3 billion shares. They have to resolve that issue. Because the problem with most of these companies, the maximum that they could invest is 40 percent. Bo: Foreign? Edward: Thats right. Theyre a directly foreign company so they can only own up to a certain limit. For foreigners they cant go more than 40 percent. But the beauty with LRI is that they are doing very well, continuing to expandbeautiful companyits one of the top 3 in the world. You have LaFarge, Semex and you have Holcim. These are the top 3 in the world. And we see that they are also expanding and they will continue to declare their dividends. Eighty five percent of their profit they declare it as dividends. Once they resolve that issue, you will see the prices recovering and start going up already. Its just during this period that you will see this problem. Bo: So even if the stock price of LRI is not moving up, youre already earning 5 percent or 6 percent in dividends every year. So its a great company. But we believe the stock price will still go up once that issue of foreign ownership will be solved, maybe at the end of the year, we dont know. The thing is, its a great time. The price is low. When the price is low were happy so keep on investing.

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Recent Rebound
Recently, weve seen the markets strong performance as it rebounded, going up by 5.6 percent since February 10. This was quite a surprise to a lot of investors. The reason behind such recent rebound is the shift of foreign investors from being net sellers from June last year up to January of this year, to becoming net buyers this past February. From June 2013 to June 2014, foreigners were net sellers by an average of P6.5 billion a month. However, last February we saw the net buying of foreigners was P3.2 billion. These days, more often than not, foreign investors continue to be net buyers in the market. The catalysts for the recent strong performance of the market last February were: 1. The release of the better than expected economic numbers of Indonesia, which is considered the Philippines emerging market Asian peer. Thus, their good performance has brought positive effect into our market, as we are part of the emerging markets in Asia considered by foreign investors.

By Mike Vias

Last February Indonesia reported that its current account deficit, which is the difference between the dollars that come in and out of the country, dropped to 2 percent of its GDP in the 4th quarter of 2013 from 3.8 percent of its GDP in the 3rd quarter for 2013. This was caused by the acceleration of export growth to 7.4 percent in the 4th quarter of 2013 from 5.3 percent during the 3rd quarter of the same year. The deficit was better than the estimate made by the central bank of 3 percent. Such an improvement in the current account deficit increased the optimism among investors. Furthermore, Indonesias 4th quarter 2013 GDP growth improved to 5.7 percent from 5.6 percent in the 3rd quarter 2013. 2. The temporary easing in treasury rates that widened the yield spread between US and Philippine treasuries.

From 3.03 percent as of end 2013, the yield on the US 10-year T-bond dropped to 2.64 percent as of end January while the yield on Philippine 10-year T-bond increased from 3.5 percent as of end 2013 to 4 percent as of end January. The result of which caused the spread between US and Philippine treasuries to widen. This in turn, reduced the pressure for the peso to weaken, and eventually attracted more foreign investors. However, COL and TrulyRichClub continues to caution investors from getting carried away by the markets strength. In spite of the positive view on the long-term outlook of the Philippine stock market, we dont see any reason why we should be more bullish than we already are. Here are some developments that should give us caution moving forward: 1. 2. 3. Early this March, Indonesia on the other hand announced that it posted a trade deficit of $440 million in January, which was much worse than the forecast of $400 million surplus. Also, exports fell by 5.8 percent in January. Such poor performance of Indonesia could cause the deterioration of foreign investor sentiment regarding emerging market Asia, which could lead to another sell-off in the market. Despite the drop in US T-bond rates, interest rates are still seen to head up in the longer term as Fed Chair Yellen announced tapering to end by fall and that rates may climb six months after. This could put some upward pressure on Philippine interest rates or cause the peso to weaken. Domestically, year-end 2013 earnings results were not so stellar, with most companies merely delivering profits that are in line with expectations.

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4.

Finally, global markets are showing signs of weakness caused by the news of continuous economic weakness of China as well as the concern about the Ukraine situation. This could also lead to weakness in our own market.

Thus, with such information, it would be hard to justify any further upgrades in our PSEi market index target of 6,900 for the end of 2014. However, this is not to sound bearish on the stock market. COL and TrulyRichClub continues to recommend that investors stay invested in the stock market or to take on opportunities to buy into weak moments as it remains the most rewarding asset class given the rising interest rates and our countrys positive long term economic outlook. Therefore for us SAM investors, we simply just have to continue our routine of buying our SAM stocks at buy below prices and eventually we will see its returns overtime. Happy investing! P.S. Check out the new PSE Edge App. Its a free mobile app from the Philippine Stock Exchange to give investors easy access to important information instrumental in making sound investment decisions. Through the app, one can check real-time corporate disclosures and company information on the go. Its available on both the iOS and Android platform. Its cool and helpful! Try it!

Here are the SAM tables (closing as of April 1, 2014).

STOCK AC BDO DNL EEI LRI MBT MEG SMPH TEL
STOCK SYMBOL AC TOTAL

Current Price 590.00 86.00 8.45 11.80 9.24 79.70 4.32 14.90 2,730.00
DATE BOUGHT Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 PRICE BOUGHT 603.50 598.50 580.00 601.50 569.50 555.00 525.00 538.50 574.00 590.00

Buy Below Price 599.13 82.74 8.70 11.04 13.78 86.96 3.95 16.73 2,834.78
PRICE TODAY 590.00 590.00 590.00 590.00 590.00 590.00 590.00 590.00 590.00 590.00 YOUR RETURN -2.24% -1.42% 1.72% -1.91% 3.60% 6.31% 12.38% 9.56% 2.79% 0.00% 3.08%

Target Price 689.00 94.00 10.00 12.70 15.85 100.00 4.54 19.41 3,260.00
BUY BELOW PRICE 654.80 602.40 602.40 602.40 602.40 602.40 599.13 599.13 599.13 599.13

Action to Take Continue buying Stop buying for now Continue buying Stop buying for now Continue buying Continue buying Stop buying for now Continue buying Continue buying
TARGET PRICE 753.00 753.00 753.00 753.00 753.00 753.00 689.00 689.00 689.00 689.00 EXPECTED GROWTH 24.77% 25.81% 29.83% 25.19% 32.22% 35.68% 31.24% 27.95% 20.03% 16.78% 26.95%

Legend:

n Continue Buying
Volume 5, No. 6

n Stop Buying
April 2014

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STOCK SYMBOL BDO TOTAL DNL TOTAL EEI TOTAL LRI TOTAL

DATE BOUGHT Apr-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Apr-14 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14

PRICE BOUGHT 86.10 84.50 87.50 82.00 75.40 78.40 78.00 69.95 71.80 80.00 6.45 6.71 7.00 8.36 7.90 6.58 6.87 6.37 6.75 6.50 6.13 6.59 7.24 8.45 9.57 9.88 9.70 10.04 10.00 11.00 11.50 11.00 10.50 9.72 9.10 9.25 8.82 8.71 9.00 8.99 9.24
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PRICE TODAY 86.00 86.00 86.00 86.00 86.00 86.00 86.00 86.00 86.00 86.00 8.45 8.45 8.45 8.45 8.45 8.45 8.45 8.45 8.45 8.45 8.45 8.45 8.45 8.45 11.04 11.04 11.04 11.04 11.04 11.04 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.24 April 2014

YOUR RETURN -0.12% 1.78% -1.71% 4.88% 14.06% 9.69% 10.26% 22.94% 19.78% 7.50% 8.91% 31.01% 25.93% 20.71% 1.08% 6.96% 28.42% 23.00% 32.65% 25.19% 30.00% 37.85% 28.22% 16.71% 0.00% 21.98% 15.36% 11.74% 13.81% 9.96% 10.40% 0.36% 10.27% -21.74% -18.18% -14.29% -7.41% -1.10% -2.70% 2.04% 3.33% 0.00% 0.11% 0.00% -5.45%

BUY BELOW PRICE 89.60 97.40 97.40 89.60 89.60 89.60 89.60 89.60 81.74 81.74 8.48 8.48 8.70 8.70 8.70 8.70 8.40 8.40 8.40 8.40 8.40 7.91 7.91 8.70 10.40 10.40 10.40 11.04 11.04 11.04 12.68 12.68 12.68 12.68 12.68 12.68 12.68 13.78 13.78 13.78 13.78

TARGET PRICE 112.00 112.00 112.00 112.00 112.00 112.00 112.00 112.00 94.00 94.00 9.75 9.75 10.00 10.00 10.00 10.00 10.50 10.50 10.50 10.50 10.50 9.10 9.10 10.00 13.00 13.00 13.00 12.70 12.70 12.70 15.85 15.85 15.85 15.85 15.85 15.85 15.85 15.85 15.85 15.85 15.85

EXPECTED GROWTH 30.08% 32.54% 28.00% 36.59% 48.54% 42.86% 43.59% 60.11% 30.92% 17.50% 37.07% 51.16% 45.31% 42.86% 19.62% 26.58% 51.98% 52.84% 64.84% 55.56% 61.54% 71.29% 38.09% 25.69% 18.34% 44.69% 35.84% 31.58% 34.02% 26.49% 27.00% 15.45% 28.40% 37.83% 44.09% 50.95% 63.07% 74.18% 71.35% 79.71% 81.97% 76.11% 76.31% 71.54% 66.10%
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STOCK SYMBOL MBT TOTAL MEG TOTAL

DATE BOUGHT Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Sep-12 Oct-12 Nov-12 Jan-13 Feb-13 Mar-13 Apr-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14

PRICE BOUGHT 50.06 55.69 52.85 50.40 48.34 50.33 47.60 49.42 55.23 61.60 60.20 62.13 60.55 65.38 65.10 67.24 72.38 78.75 81.90 82.81 84.70 78.89 77.00 84.65 86.95 80.55 73.20 73.75 79.55 81.40 79.70 4.23 3.67 3.15 3.40 3.21 3.64 3.58 3.23 3.36 3.78

PRICE TODAY 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 79.90 4.32 4.32 4.32 4.32 4.32 4.32 4.32 4.32 4.32 4.32

YOUR RETURN 59.60% 43.49% 51.18% 58.53% 65.30% 58.75% 67.86% 61.68% 44.67% 29.71% 32.72% 28.61% 31.96% 22.21% 22.73% 18.84% 10.39% 1.46% -2.44% -3.51% -5.67% 1.28% 3.77% -5.61% -8.11% -0.81% 9.15% 8.34% 0.44% -1.84% 0.25% 22.74% 2.13% 17.71% 37.14% 27.06% 34.58% 18.68% 20.67% 33.75% 28.57% 14.29% 23.46%

BUY BELOW PRICE 78.88 78.88 78.88 78.88 78.88 78.88 78.88 83.07 83.07 93.91 93.91 93.91 93.91 93.91 104.35 104.35 113.04 129.57 129.57 129.57 129.57 129.57 119.20 91.68 91.68 91.68 91.68 86.96 86.96 86.96 86.96 4.16 4.16 4.16 3.89 3.89 3.89 3.89 3.89 3.95 3.95

TARGET PRICE 93.60 93.60 93.60 93.60 93.60 93.60 93.60 108.00 108.00 108.00 108.00 108.00 108.00 108.00 120.00 120.00 130.00 149.00 149.00 149.00 149.00 149.00 149.00 114.60 114.60 114.60 114.60 100.00 100.00 100.00 100.00 4.78 4.78 4.78 4.87 4.87 4.87 4.87 4.87 4.54 4.54

EXPECTED GROWTH 86.96% 68.09% 77.11% 85.71% 93.65% 85.97% 96.64% 118.54% 95.55% 75.32% 79.40% 73.84% 78.36% 65.19% 84.33% 78.48% 79.61% 89.21% 81.93% 79.93% 75.91% 88.87% 93.51% 35.38% 31.80% 42.27% 56.56% 35.59% 25.71% 22.85% 25.47% 71.22% 13.00% 30.25% 51.75% 43.24% 51.71% 33.79% 36.03% 50.77% 35.12% 20.11% 36.58%

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STOCK SYMBOL SMPH TOTAL TEL TOTAL

DATE BOUGHT Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 Jun-13 Jul-13 Aug-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14

PRICE BOUGHT 16.90 16.40 15.10 14.68 14.70 14.90 14.90 2902.00 2854.00 2800.00 2800.00 2622.00 2710.00 2690.00 2760.00 2730.00

PRICE TODAY 14.90 14.90 14.90 14.90 14.90 14.90 14.90 2730.00 2730.00 2730.00 2730.00 2730.00 2730.00 2730.00 2730.00 2730.00

YOUR RETURN -11.83% -9.15% -1.32% 1.50% 1.36% 0.00% 0.00% -2.78% -5.93% -4.34% -2.50% -2.50% 4.12% 0.74% 1.49% -1.09% 0.00% -1.11%

BUY BELOW PRICE 17.20 17.20 17.20 16.73 16.73 16.73 16.73 3043.48 2848.00 2848.00 2848.00 2848.00 2834.78 2834.78 2834.78 2834.78

TARGET PRICE 21.50 21.50 21.50 19.41 19.41 19.41 19.41 3500.00 3560.00 3560.00 3560.00 3560.00 3260.00 3260.00 3260.00 3260.00

EXPECTED GROWTH 27.22% 31.10% 42.38% 32.22% 32.04% 30.27% 30.27% 32.21% 20.61% 24.74% 27.14% 27.14% 35.77% 20.30% 21.19% 18.12% 19.41% 23.82%

Reminder:The information above is exclusive for TrulyRichClub members only. We thank you for keeping it private.

Legend:

n Continue Buying

n Stop Buying

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2013 Top Winners of TrulyRichClubs Stocks

If you followed our Stock Recommendations in the past, youd have enjoyed these earnings. Were reposting this again to encourage you to be faithful to your monthly investments today for the stocks we recommend above. Never give up. And youll have great winners 10 to 20 years from now! Note: The percentage returns cannot be compared between the two tables below. The All Time Winners table does not take into consideration a cost-averaging method. The percentage return is only from a buy-and-hold strategy. The 2013 Table however integrates a cost-averaging method throughout the months it was under the Buy-Below.
STOCKS Alliance Global Meralco First Philippine Holdings JG Summit Holdings STOCK SYMBOL AGI MER FPH JGS TIME RECOMMENDED January 2013 to February 2013 January 2013 to April 2013 June 2011 to June 2013 February 12 to October 2013 ESTIMATED TIME HELD 1 Month 3 Months 25 Months 18 Months PRICE RANGE P17.54 to P20.50 P268.00 to P377.00 P63.18 to P95.20 P25.75 to P43.50 ESTIMATED RETURN 16.88% 28..05% 32.92%% 39.96%

Top Past Winners of TrulyRichClubs Stocks

STOCKS Ayala Land Nickel Asia Bank of The Philippine Islands Ayala Corporation SM Prime Holdings Alliance Global Meralco First Phlippine Holdings JG Summit Holdings STOCK SYMBOL ALI NIKL BPI AC SMPH AGI MER FPH JGS TIME RECOMMENDED June 2011 to February 2012 (3rd week) February 2012 to March 2012 (3rd week) February 2012 to November 2012 (4th week) October 2012 to December 2012 (2nd week) February 2012 to December 2012 (1st week) January 2013 to February 2013 January 2013 to April 2013 June 2011 to June 2013 February 12 to October 2013 ESTIMATED TIME HELD 9 Months 2 Months 10 Months 2 Months 10 Months 1 Month 3 Months 25 Months 18 Months PRICE RANGE P15.09 to P21.65 P23.75 to P26.20 P68.45 to P91.00 P440.00 to P520.00 P12.48 to P17.00 P17.54 to P20.50 P268.00 to P377.00 P63.18 to P95.20 P25.75 to P43.50 ESTIMATED RETURN 35% 10.32% 34.29% 17.65% 27.75% 16.88% 28..05% 32.92%% 39.96%

(Disclaimer: Past performance doesnt guarantee that youll have the exact same results in the future. After all, your earnings all depend on the markets performance.)

Mike Vias is an Investment Trainer of COL Financial Group, Inc. He is a Certified Securities Representative and Certified Investment Solicitor.

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