Foreign investors driving bulls in RP bourse

By Doris Dumlao Philippine Daily Inquirer MANILA, Philippines—Optimism about the new Aquino administration and about robust economic growth has allowed the bulls to chase the bears out of the local equities market, catapulting stock prices to unprecedented heights. The main Philippine Stock Exchange index (PSEi), a barometer of investor confidence in the local economy, Thursday closed past 4,000 for the first time. This upswing is widely expected by market analysts to continue toward 4,700 to as high as 5,300 through next year. “We’re exiting the recovery phase and entering the bullmarket phase,” April Lee-Tan, head of research at online stock brokerage CitisecOnline, Thursday said at a Philippine National Bank (PNB) investors briefing. Foreign funds have started to trickle back to the local market since November, she said. But even at much-improved levels these days, the numbers are still only a third of how much they used to be, suggesting that equities have more room to climb given the favorable economic outlook and upbeat prospects on the Aquino administration, Tan said. Moreover, Tan said stocks were still attractively priced relative to the earnings prospects of publicly listed corporations. “We are at what we call the sweet spot. The stars have aligned,” Eduardo Banaag, vice president for investment at First Metro Investment Corp., said in an interview. Banaag said the current market bullishness was of a different nature. “We’re on a surer footing,” he said, noting that the Philippines has only started an investment-led recovery. Paul Joseph Garcia, chief executive officer at ING Investment Management, believes the local market has freed itself from the bearish cycle since last week when the PSEi exceeded the record highs last seen in 2007. Garcia said the index may surge further to at least 4,700 through next year. “There is rational exuberance in the market,” he said, noting that foreign funds were taking greater interest on the Philippine market, such as the likes of Fidelity Fund, China Investment Corp. and Government of Singapore Investment Corp. “These are not hedge funds who come and go. These are the funds that stay for the long haul,” Garcia said. Rafael Ayuste Jr., head of PNB’s trust banking group, said equities would likely outperform fixed-income instruments through at least through next year. His group expected the index to rise further to 4,200 this year and toward 4,800 through next year. “We have new dynamism in the economy,” Ayuste said. New wealth The PSEi gained 31.79 points or 0.8 percent to finish at 4,005.46 Thursday. “Year to date, the stock market has gained a total of 31.21 percent or 952.78 points. For the same period the stock market has also generated wealth worth P1.5 trillion in terms of domestic market capitalization,” said PSE president Val Antonio Suarez. He said that the PSE continued to be invigorated by the bullish trends and that it was looking forward to new highs this year. The main stock index surged by 63 percent to 3,052.68 last year but this was only a recovery from the 48.3-percent decline in 2008, when the index ended at 1,872.85. As the stock market hit record highs starting last week, daily value turnover improved to at least P6 billion to P8 billion, up from the average turnout of a little over P4 billion in the first semester. While foreign funds were starting to flow back, the local market is also now supported by strong domestic investor participation. Features of bull market Tan said a bull market, which the Philippines would see through 2011, would have the following characteristics: • Economic growth will pick up steam on the back of increasing wealth among domestic consumers, numerous investment opportunities and a strong financial system; • Stocks will trade at higher or more expensive levels; The PSEi will test 5,300 as earnings per share will likely grow by 37.7 percent from the levels in 2007 when the market last rallied to record highs, while investors are expected to pay a higher price to buy stocks whose earnings potentials are expected to rise. PE ratio of 13 Tan said the local stock market was trading at a price-earnings (PE) ratio of 13 times, which is not expensive relative to its PE ratio of 28 times during the Asian crisis. A company trading on a PE ratio of 28 times means that buyers are paying 28 times the amount of money that the firm is making in a given year. A higher PE ratio means that investors believe that past earnings were modest compared with future prospects. At present, however, Tan said local stocks may be expensive compared with how stocks in the region where traded, which means that the Philippine market—for all the euphoria—may still underperform in the short term. But over the long term, she said valuations would rise in other markets and thus investors would appreciate good buys in the Philippine equities market. “The new administration can be a catalyst for growth plus economic reform will lead to higher investor confidence,” she said. First Metro’s Banaag said he was looking at 4,400 as the next potential target this year. “I think the market is worth 4,400 in the first quarter. If we reach 4,400 in September, we should consolidate and take profits first. That said, I think 4,400 is possible this year,” Banaag said. Best-performing fund First Metro Save and Learn Equity Fund, First Metro’s equity-based mutual fund, is currently the best performing mutual fund. Its year-to-date increase in net asset value per share is about 48 percent. Return on First Metro stock fund’s over a three-year period is also the highest at 17.31 percent. Since the launch of this fund in October 2005, its net asset value has surged by 210 percent, outperforming the 101 percent PSEi rise over the same period. Compounded annual growth rate stands at 25.5 percent. With the robust stock market, other equity-based mutual funds have also performed well. Over the past three years, the top performers and their average return were Philequity Fund Inc. (14 percent) and Philam Strategic Growth Fund Inc. (12 percent). “The economy has traction. We’ve never depended on other countries for growth. This is all consumer spending,” Banaag said. Bigger savings While the government’s budget deficit remained a concern, Banaag said this was becoming less of a concern as private savings in the country were three times higher than the shortfall. “The amount of cash available in the system is increasing faster than the deficit. So this deficit, while still a concern, is going to be much less relevant,” he said. Banaag added that the country’s gross international reserves were growing faster and could soon overtake the entire foreign debt stock of about $55 billion. “This is a situation that we have not seen—that our reserves will be on a one-is-to-one ratio against foreign debt. I did not even imagine that it will happen in my lifetime,” he said. Record corporate earnings Amid the backdrop of good corporate fundamentals, Banaag said corporate earnings would end at record levels for listed companies—in stark contrast to the woes in the United States and Europe. “The magic is all in savings and investment,” he said. By sector, Banaag said the property and conglomerates would likely continue to do well. He said the property sector would benefit from ample financial liquidity seeking investment outlets while the conglomerates were a proxy to the real economy. Among the stocks in First Metro’s P1-billion equity fund were Aboitiz Power Corp., Metro Pacific Investments Corp., DMCI Holdings, Universal Robina Corp., Semirara Mining, Oriental Peninsula, Aboitiz Equity Ventures, Vista Land & Lifescapes and Sta. Lucia Land Inc. “I think all stocks will do well. It’s the ‘outperformers’ that we’re looking for,” Banaag said. Tan, for her part, said banks would likely do well through 2011 as this sector was a play on investment and consumer spending. Her top banking picks were Metropolitan Bank & Trust Co., Security Bank Corp. She said property stocks would also likely do well, identifying Megaworld Corp., Robinsons Land Corp., Filinvest Land and Ayala Land Inc. as the top picks. Other stocks seen benefiting from a “growth” play through 2011, Tan said, were Manila Electric Co., Metro Pacific Investments, DMCI Holdings, International Container Terminal Services Inc. and Manila Water Co. She added that EEI Corp., Energy Development Corp., First Gen Corp. and First Philippine Holdings would also likely benefit from higher earnings forecasts. When in Cebu City, please visit gregmelep.com for your real estate and retirement needs. Published in Philippine Daily Inquirer Sept. 17, 2010..

Why Good People Fail In Life

      I’m  Bo Sanchez.
      Are you enjoying GodWhispers?
      Do you sometimes feel that the GodWhispers you receive is exactly what you need to read?  Like I had X-ray eyes and and mind-reading abilities, and I knew what was happening to you—and I sent this specific GodWhispersto address your need?
      There’s only one word to explain that phenomenon: Miracle. 

Tiny Drops Of Healing 

      I love writing GodWhispers for you.
      As you can probably guess, I write a lot of stuff.  Magazine articles and blog entries and entire books.       But writing GodWhispers is very special to me.      Why? 
      Because I know that GodWhispers are like the waves of the ocean hitting a rocky shore.  One wave may not dent the rocks.  And one GodWhispers email may not change your life.  Yet.      But over time, as millions of waves hit the rocks, waves actually shape them.  In the same way, I believe as you “hear” GodWhispers through the years, these simple “love notes” from God will shape the direction of your life.
      How do I know?
      I look at my own life.
      Once upon a time, I was a big failure.
      I didn’t like myself.
      Correction: I hated myself.
      I felt I had no gifts.
      I felt ugly and dirty and wicked.
      I looked down on myself.
      Worse, I felt God looked down on me too.  I felt God saw me as ugly and dirty and wicked too.
      But one day, God’s Love invaded my soul.
      It didn’t come as a tidal wave.
      It came as tiny drops—whispers from God—telling me how much I was precious to Him.
      Over time, these tiny drops of healing changed my life forever.  Because God changed the way I saw myself, I changed the entire direction of my life.
      From a big failure, I’m now winning in life. 

Why Good People Fail In Life 

      I was a good person.
      But I was failing in life!
      Why?  Because I had self-defeating, limiting beliefs that were creating havoc in my life.
      I’ve seen this exact tragic thing happen to so many good people.  Kind, decent, nice people.  But their distorted beliefs about themselves make them fail in life!
      That’s where tiny GodWhispers can help you in a big way.
      GodWhispers can change the way you think about yourself.
      How?  It gives you a glimpse of how God sees you. 
      As you receive GodWhispers, believe that miracles will happen in your life. 

Get GodWhispers Everyday 

      Do you want to receive GodWhispers everyday?
      I’d like to personally invite you to upgrade yourself to Platinum Member of the GodWhispersClub.
      Aside from receiving GodWhispers everyday, you’ll also receive a massive truckload of blessings for your life.
      Each month, you’ll receive my audio LifeTalks each month to bless you, teach you, and guide you in living an abundant life. 
      Plus my favorite worship song every month to inspire you.
      Plus my treasure trove of inspiring, life-changing eBooks.
      And a big bonus for you: Your very small membership fee each month as a Platinum Member will help me continue my various ministries for the poor and for sharing God’s Love to the world.  (That in itself is a big win for you!)
      If you want to know more how to win in life, click the link below:

Yes, I want to start winning in life—
tell me more about the Platinum Membership of the GodWhispersClub 

      May your dreams come true, 

      Bo Sanchez 

When in Cebu City, please visit gregmelep.com for your real estate and retirement needs.

OFWs cancelling contracts for HK jobs—recruiters

Veronica Uy

Inquirer.Net

MANILA, Philippines—Even as Hong Kong employers still want to hire Filipino household workers despite the tragic hostage-taking incident in Luneta, some would-be Filipino migrant workers are cancelling their contracts, a recruitment leader said Sunday.

Alfredo Palmiery, president of the Society of Hong Kong Accredited Recruiters of the Philippines (SHARP) who personally went to Hong Kong last week after job applicants expressed apprehension over the situation in Hong Kong, said his counterparts in Hong Kong assured him that Filipinos are still preferred by Hong Kong employers for their proven reliability, loyalty, and proficiency in English.

In a news release, Palmiery also said he was told that the hostage-taking incident will not affect that status of the Filipino workers in Hong Kong. Hong Kong people are broadminded and understanding, he was assured.

Thomas Chan, president of the Hong Kong Federation of Employment Agencies Ltd., and Tony Lau, president of the General Chamber of Manpower Agencies Ltd., both said that so far employers of their member-agencies have not cancelled any job order or contract for Filipino household workers in relation to the hostage-taking tragedy.

However, Palmiery warned that if departing Filipino workers will continue cancelling contracts or if there will be fewer applicants, Hong Kong employers may be forced to get other nationalities for the job.

He noted that there are already more Indonesian maids than Filipino domestic workers in the former British colony.

Palmiery said that Hong Kong is still the best destination for Filipino household workers: It is close to the Philippines, it offers relatively competitive salaries, and it has very few welfare cases compared to those in the Middle East.

“To lose the Hong Kong market would have a tremendous effect in the Philippine economy as it accounts for a very significant part of our foreign exchange remittances. Many of Philippine business now based in Hong Kong, the remittance centers, the banks, real estate companies would definitely be affected,” he said.

Hong Kong is the top destination of household service workers with 25,000 departures last year and around 200,000 OFWs including non-domestic workers already remitting some $350 million to the country every year. OFWs in Hong Kong also directly remit Philippine currency to their beneficiaries as many Filipino commercial and remittance companies have set up branches there.

Published in Philippine Daily Inquirer Sept. 12, 2010.

Entrepreneur turns from candles, candies to ‘healing drink’

By Sharon Robas-Macawile Philippine Daily Inquirer FOR MORE than a decade, Elizabeth G. Seim had managed different businesses ranging from aromatherapy things to candies. Recently, she heads the company that imports and distributes the country’s first colostrum-based food. Seim started as an entrepreneur in the ’90s, selling aromatherapy products in her store Regeneré, a chain of wellness products shop, initially located in the Edsa Plaza Shangri-La Mall. “I was the one who introduced aromatherapy in the Philippines,” Seim declares, citing products such as aromatherapy candles were not readily available in the country back then. She adds that most of these products were sourced abroad, and became a hit to many local patrons. “I have a niche market here. And customers really appreciate it because they don’t need to go abroad to buy it. It may be a bit pricey but many of our clients are thankful that it’s available here,” Seim shares. Regeneré has had many branches in leading malls in Metro Manila, including one branch with a spa in Rockwell. Although the stores no longer exist today, Seim relates how it had been a success: “It was very good . . . because I was the only one who had those products. I have a niche market. When I go abroad and see one-of-a kind things I buy them and put them in my store…and customers love it.” She also ventured in a Candy Express franchise located near the then “Ripley’s Believe It or Not” museum in the Shangri-La Mall, taking advantage of the many customers visiting the museum. However, when ‘Ripley’s’ ceased operation, Seim decided to close Candy Express as she wasn’t keen on moving it to another location. But her penchant for wellness products prodded her, together with a Malaysian business partner, to put up SNI Philippines Inc. in 2008. SNI Philippines started importing and distributing health products in many parts of the country. Its mother company is the Malaysia-based SNI World. Seim recalls how she wasn’t too keen on the idea of the venture in the beginning, but after knowing the many health benefits the product contains, her hesitation turned to enthusiasm. SNI’s main product today is the IgCo Natural Colostrum Skim Milk, a healthy food and drink made from bovine colostrum imported from New Zealand. Antibodies Colostrum is the pre-milk substance produced during the first few days after the birth of a human or an animal. It contains large amounts of antibodies or immunoglobulins (Ig), as well as vitamins andminerals that help protect newborns from viruses and bacteria. “It is the only food in nature that contains antibodies,” says Seim, SNI Philippines’ managing director. Studies show that colostrum has great benefits not only to newborns but to adults as well. And researchers prove that bovine colostrum has nearly similar properties as that of human colostrum, thus it’s a good alternative source for commercial consumption. IgCo (Immunoglobulin Colostrum) is 100 percent natural colostrum blended with skim milk in powder form, made using a slow freeze drying technique. This process preserves colostrum’s active biological components such as the immune and growth factors. “It is safe and it’s all natural because the cows in New Zealand are pasture fed, no injection, etc.,” explains Seim. She says that their target market is “everybody…sick or not sick, young or old,” adding that it’s a preventive agent that protects the immune system in order to prevent getting sick, and can be taken even by those with lactose-intolerance as it has a very low lactose content. IgCo’s 15g-sachet retails for P75. Seim stresses that it is recommended to be taken on an empty stomach early in the morning or before bedtime and must be dissolved only in lukewarm or cold water, not hot water. From 300 distributors in the first month of its operation, SNI has now 3,000 distributors all over the country. ‘The miracle food’ Seim adds that many doctors and medical practitioners, who call the product “The Miracle Food,” vouch for IgCo’s many health benefits, that’s why they recommend it to their patients. In fact, at SNI website (www.snionline.com.ph), there are many testimonies by IgCo users relating how the product made them healthy and well, including a 17-year-old girl who was diagnosed with Hodgkin’sLymphoma in 2008 who declared how IgCo protected her from getting serious infections while undergoing chemotherapy treatments. Other health benefits of colostrum aside from boosting the immune system are: it helps lower blood sugar to normal level; maintains strong bones and a healthy intestinal tract; helps build muscles; minimizes allergies; and helps heal wounds faster, among others. But SNI is not only about making profits. Seim stresses their advocacy of helping out and giving back to the communities through the company’s SNI Care program which conducts outreach programs all over the country by conducting feeding programs and medical missions. They also give out IgCo samples to poor communities and, with the help of doctors, educate people about the benefits of colostrum. SNI also sponsors and participates in several medical conventions and symposia. SNI Academy, on the other hand, is the company’s training program for its members and interested participants, who want to become a member or distributor, which teaches basic communication and presentation skills, as well as personality development and spiritual wellness. Seim is optimistic that SNI will go a long way in helping Filipinos become healthy, as well as giving them opportunities to earn. “We are slowly but surely growing,” she beams, adding that more colostrum-based products are being developed by the company. She concludes by attesting that aside from the success of the business, nothing makes her happier and fulfilled than helping others and seeing them happy, healthy and well.

When in Cebu City, please visit gregmelep.com for your real estate and retirement needs.

Published in Philippine Daily Inquirer Sept. 19, 2010.

Health drink vendor savors fruit of his labor

By Margie Quimpo-Espino
Philippine Daily Inquirer

WHEN setting up a business, one either introduces a new concept or finds a niche or a gap in the industry on which to pounce.

Lester C. Yu is fond of health drinks. It dawned on him one day that there was a huge unexplored market for affordable health drinks.

“At that time [when we were conceptualizing a business about fruit shakes], existing fresh fruit shakes players were situated at high-end places like Makati and Ortigas offices, malls, and commercial buildings. We saw the untapped ... middle class market. At that time, we were also anticipating that the market was gearing up for healthier products,” Yu tells SundayBiz.

Health craze
Believing that the less middle class would also appreciate healthydrinks, he set up Fruitas.
Yu is the founder and owner of fruits shake kiosks all over Metro Manila, with 250 stalls to date. When he put up Fruitas in 2002, it was the start of the health consciousness era in the country, he says.

It was around that time that the movie “Super Size Me” was shown. The movie was a documentary of a man who only ate fastfood hamburgers morning, noon and night time for weeks, which resulted in weight gain and a host of health problems.

Entrepreneurial spirit
After finishing Industrial Engineering at De La Salle University, Yu joined Westmont Bank and, after four and a half years, became a branch head.

But the entrepreneurial blood ran thick in his veins and soon, Yu went into business starting out as an importer of toys and kitchenware.

He eventually shelved the business to focus on the health industry.
“Because of limited resources, we decided to focus on Fruitas especially since we were starting to feel its potential as a business,” he admits.

The Fruitas stalls were a far cry from that of Lush, another Yu venture and a competitor of Zagu, which was the craze in the 1990s.

Although the Zagu craze fizzled out, along with Lush, there still was a huge market for flavored powder drinks with black pearls (sago), he recalls.

Juice Avenue
Since he set up Fruitas, Yu was creating new ventures almost every year.
In September 2004, he put up Juice Avenue, another fruit kiosk targeting the upper market with its smoothies – a juice concoction with milk or vanilla icecream.

The following year, he set up Buko ni Fruitas. It now has 150 outlets.
As the name suggests, it is basically coconut mixed with fruits, or strips of buko mixed with various concoctions.

Although Yu had to sell the Lush outlets, he noted that the market for such drinks was still strong. So he set up Black Pearls in 2006. Today, it has up more than 90 outlets.

“After a few years of operating Fruitas, we saw a certain market segment that Fruitas was not able to tap. It was the mass market. Setting up Black Pearl was a way for us to serve that specific market,” he explains.

That same year, he put up the Mango Farm. Its first branch opened on December 1.
Two years ago, Yu set up Cocktales, a dessert place “reminiscent of the dessert bars in New York.”
The bar serves desserts shakes, stirred fruits and coffee. It also serves lunch and dinner meals like pasta, sandwiches and rice meals.

So far it has five outlets – SM Megamall, Mall of Asia, Trinoma, Robinson’s Ermita and Il Terrazo on Tomas Morato.
And what has the 35-year-old in store for the future?

“We still plan to expand continuously through the following tools/processes: Creation of new concept brands, mergers and acquisitions, and international expansion,” Yu says.


When in Cebu City, please visit gregmelep.com for your real estate and retirement needs
Published in Philippine Daily Inquirer Sept. 19, 2010.