STOCK TRADING JOURNAL

Submitted to

Prof. Queenie Tenedero, CPA

College of Accounting Education
University of Mindanao

In Partial Fulfillment
Of the Requirements in Financial Markets (ACC212)

Jel-Anndrei I. Lopez
BE 330 10:00-11:00 a.m.

August 20, 2019

 TABLE OF CONTENTS

EXECUTIVE SUMMARY 1
INTRODUCTION 1
ANALYSIS 4
CONCLUSIONS AND FINDINGS 5
CHARTS AND DIAGRAMS OF PORTFOLIO PERFORMANCE 7

 Return on Investment 7
 Stock Chart 8
CURRICULUM VITAE 8
APPENDIX 9

 AC - Ayala Corporation i
 ICT - Internationall Container Terminal Services, Inc. ii
 MBT - Metropolitan Bank and Trust Company iii
 AP – Aboitiz Power Corporation iv
 Portfolio Holdings v
 Order History vi
 Selling Order History vii
REFERENCES 18
 I. EXECUTIVE SUMMARY

This project is for the compliance for the requirements of the course Financial
Markets (ACC212). Whereby, the first metro sec gives each student a virtual account
in a virtual stock market with an initial account balance of one hundred thousand
pesos (₱100,000.00). Students are required to trade in the said virtual stock market,
which involves buying and selling stocks for four weeks, to apply the basic
knowledge of fundamental analysis, to apply the knowledge of technical analysis.

After the students accomplished the buying and selling of stocks, the latter
must prepare trading journals which consist of certain questions. These questions
correspond to the essential performance of the students in progress. Moreover, the
journal is also intended to assess their understanding, and the proper application of the
discussion related to the stock market.

The purpose of this project is to help students on how to trade effectively in

stock market. They are given set of knowledge that they can use in assessing a
particular stock. The students can also acquire important set of skills that they can get
from this project that they may be able to use it in their future endeavors.
 II. INTODUCTION

The word trading encompasses a wide variety of meanings such as,

buying and selling of goods and services, barter or exchange, and etc. However, the
word trading in a stock market needs a lot of guts to be successful. If one entered into
stock trading, one must have a proper knowledge and understanding. Expectations
about this given project, it will be a difficult task because no one knows what exactly
will happen to a particular stock in a blink of an eye, there is a possibility that the
predictions might occur or may not. Also if one has made even a small decision it will
cause a huge gain or a huge loss.

In able to become successful in trading with stocks, I use the fundamental

analysis in assessing if the company’s value of stock will rise or fall. For instance, I
use to research about the company’s current standing in the economy. I also watch or
read news about the company issues if I desired to by their stocks. Lastly I search in
the internet on what is the best stock to buy.

If one wish to become successful in stock trading one must take risk. In order
to have a huge gain and to avoid huge loss one must have a great amount of risk
tolerance. The best way to buy a stock is buy it in its lowest price; if eventually the
price will rise, it will be the best time to sell it.

The PSEi increased 409 points or 5.46% since the beginning of 2019,
according to trading on a contract for difference (CFD) that tracks this benchmark
index from Philippines.

I expect my stock that all will eventually increase its market value. Since,
before I buy the stock, it took me a huge amount of time to decide whether it’s worth
it to buy these stocks. Hopefully, if my expectations are correct it will be favorable for
me, so that I can sell it in a higher price to have a huge gain.

First investment strategy is to buy a blue chip stocks, because these stocks are
safe to buy. The market price of these stocks also will not fall definitely. Blue chips
are associated with the word “bull trading”, since its market price goes higher and
higher.
 Second is Investing in Value Stocks, Value stocks have historically been
considered as one of the most successful ways to invest in the market. It’s an
investment strategy followed closely by Warren Buffett, and it helped make him one
of the wealthiest people in the world.

Lastly is, to invest in a company which has a comparative advantage since it

likely to outperform the market competition. Also these companies are not associated
with a lot of anomalies which is one of the hindrances why it a certain company
doesn’t progress. Therefore, it will make your investment grow.
 III. ANALYSIS

The stocks that I bought are the following: Ayala Corporation (AC), Aboitiz
Power Corporation (AP), International Container Terminal Services, Inc. (ICT), and
Metropolitan Bank and Trust Company (MBT). I choose these stocks since I find it
safe to invest; my decision is based on my fundamental analysis, and technical
analysis. The given stocks above are not related simply means it is from different
industries. I choose these stocks since it came from companies who excel in their
respective industry.

The Ayala Corporation (AC) are belong to a holding company that offers
business process outsourcing (BPO) services, transport infrastructure, education,
healthcare, international and others.

On the other hand, Aboitiz Power Corporation (AP) is the holding company
for the Aboitiz Group’s investments in power generation, distribution, and retail
electricity services. Incorporated in 1998, Aboitiz Power is a publicly listed holding
company that, through its subsidiaries and affiliates, is a leader in the Philippine
power industry and has interest in a number of privately-owned generation companies
and distribution utilities.

While International Container Terminal Services, Inc. (ICT) International

Container Terminal Services, Inc. (ICTSI) is a global port management company
with headquartered and established at Manila, Philippines. Incorporated on December
24, 1987, ICTSI been cited by the Asian Development Bank as one of the top five
major maritime terminal operators in the world.

Lastly, the The Metropolitan Bank and Trust Company (PSE: MBT),
commonly known as Metrobank, is the second largest bank in the Philippines. It
offers various financial services, from regular banking to insurance. It is the banking
arm of the late tycoon George Ty.

Since these stocks are issued by companies with a secure and stable financial
standing in their respective industry I considered all the stocks that I bought are
conservative stocks. Conservative mutual fund is an investment portfolio managed by
a professional who invests in financial securities fitting the low-risk profile.
Conservative stocks are equity securities that are issued by financially stable
companies and trade in the public stock market.

Media news plays an important role in assessing the current situation of the
company. It is vital for traders to have a glimpse of the company, by means of
informing readers if there is a changes in the company’s policy, change in
management, if the company faces an issue and etc. in order to avoid huge losses one
must first search for news.

The best performing stock that I bought is the Aboitiz Power Corporation
(AP), since the market price of this stock is rapidly rising. While, the least performing
stock that I bought is the, The Metropolitan Bank and Trust Company (PSE: MBT),
although its market price is decreasing, but only in small difference. During my four
days of trading in stock market I usually sell my stocks frequently. The total Return
on investment that it provide is -1.58% If I notice that the price change significantly I
immediately sell it, so that I can gain extra money to buy another stocks.

IV. CONCLUSION AND FINDINGS

Everyone can enter freely in the stock market, anyone has an

opportunity to trade in stock market, but the question is are you willing to take the
risk?. As I do this activity I realized that trading is not for those people who are not
risk takers. The moment you enter the world of trading the word loss is always
associated whenever you buy a stock. There is no certainty that one can acquire gain
in their investment, even if they make all their best in determining factors that will
affect the change in value of stock. I learned from this activity that, before you do
certain thing in your life you must weigh things first, you must decide again and again
to actions that will do, also if you want to be successful you must not hesitate to do
whatever you can do.

Next time that I will do in order to be more successful in trading I must not
make decisions that I didn’t usually take measure of, during those prior weeks I only
look in the tip in the iceberg, although I did research but it is only to its surface level I
didn’t seek deeply. Next time I must exert more effort in making thorough research as
contrary to what I did in those prior weeks.
 I enjoy the fact that it seems like we are trading with our own money. We are
given an opportunity to take a glimpse of what is trading in a stock market. We are
excited and the same time worried we are having a thought in ourselves that what if it
is real money that we trade, either we bear losses or gain. Those situations linger to
our mind. However at the end of the day we are lucky since we are given an
opportunity to experience at the same time we are given a set of techniques, strategies,
and set of skills in trading which will be very important to us if we wish to enter in a
real stock trading in the future.
 V. CHARTS/ DIAGRAMS OF PORTFOLIO
PERFORMANCE

Return of Investment

Net
Stocks Total Cost of Stock Gain/Net Return of Investment
Loss

Ayala Corporation (AC) 28,065.54 154.71 0.55%

Aboitiz Power 10,797.57 -321.36 -2.98%

Corporation (AP)

International Container 3,769.98 -210.39 -5.29%

Terminal Services, Inc.
(ICT)

Metropolitan Bank and 2,334.31 -337.64 -14.46%

Trust Company (MBT)
Stock Charts
 VI. CURRICULUM VITAE

PERSONAL DETAILS

Name: Jel-Anndrei I. Lopez

Address: Km. 12, Suha St., Sasa, Davao city

Date of birth: January 25, 2000

Birthplace: Davao City

Nationality: Filipino

Civil Status: Single

EDUCATION

Elementary: Vicente Hizon Sr. Elementary School

Junior High School: F. Bangoy National High School

Senior High School: University of Mindanao

SKILL

 Mathematical Skill
 Interpersonal Skill
 Computer Skill
 VII. APPENDIX

Company Balance Sheet

AC - Ayala Corporation

2018 2017 2016 2015 2014

Earnings Summary
Net Income Excl.
Nonrecurring Items 31.82B 30.26B 26.01B 22.28B 18.61B
Net Income 31.82B 30.26B 26.01B 22.28B 18.61B
EBT 70.18B 62.13B 53.94B 47.31B 40.41B

Balance Sheet Accounts

Cash 60.62B 64.26B 60.22B 82.15B 90.77B
Trade Receivables 77.48B 123.14B 106.13B 88.18B 70.18B
Accounts Receivable 157.73B 100.24B 116.84B 82.6B 72.71B
Current Assets 412.76B 336.95B 288.47B 262.85B 254.7B
Investments 240.14B 202.65B 180.31B 166.45B 156.2B
Total Assets 1.2T 1.02T 911.7B 794.07B 726.05B
Accounts Payable 120.31B 90.75B 90.79B 85.02B 70.47B
Current Liabilities 330.1B 241.79B 235.8B 205.97B 169.76B
Short-term Borrowings 88B 43.64B 50.65B 52.54B 31.85B
Long-term Borrowings 324.26B 306.98B 245.2B 210.8B 227B
Total Borrowings 412.26B 350.61B 295.85B 263.34B 258.84B
Forex Liabilities 89.76B 65.66B 50.41B 41.09B 49.45B
Total Liabilities 728.82B 610.45B 540.71B 465.53B 439.18B
Shareholders' Funds 290.61B 256.35B 230.92B 208.66B 185.66B

Income Statement Accounts

Total Revenues 325.38B 289.13B 237.29B 207.67B 184.28B
Equity Earnings 20.46B 18.49B 18.15B 15.04B 13.19B
Operating Expenses 27.44B 23.3B 19.08B 17.52B 14.65B
Depreciation 13.56B 12.3B 11.56B 9.44B 9.16B
Interest Expense 17.61B 13.23B 12.38B 12.13B 10.57B
Taxes Paid 15.12B 12.26B 10.51B 9.01B 8.14B

Other Financial Information

Net Working Capital 82.66B 95.17B 52.67B 56.88B 84.94B
Net Debt (Net Cash) 351.64B 286.35B 235.63B 181.19B 168.08B
Enterprise Value 916.25B 923.11B 693.91B 655.46B 603.45B
 FINANCIAL HIGHLIGHTS
ICT - Internationall Container Terminal Services, Inc.

2018 2017 2016 2015 2014

Earnings Summary
Net Income Excl.
Nonrecurring Items 11.65B 9.09B 8.95B 2.76B 8.14B
Net Income 11.65B 9.09B 8.95B 2.76B 8.14B
EBITDA 33.83B 27.72B 25.55B 16.22B 20.75B
EBIT 23.54B 19.06B 18.2B 10.27B 15.31B
EBT 16.24B 12.4B 12.78B 5.63B 10.97B

Balance Sheet Accounts

Cash 23.51B 13.95B 16.16B 16.68B 8.69B
Trade Receivables 5.98B 5.38B 4.65B 3.85B 3.92B
Accounts Receivable 6.33B 5.64B 5.12B 4.1B 4.06B
Current Assets 35.41B 24.92B 25.65B 24.18B 16.08B
Inventory 1.79B 1.78B 1.67B 1.3B 1.17B
Fixed Assets 72.46B 72.71B 68.69B 54.07B 41.79B
Total Assets 247.28B 218.23B 207.98B 180.28B 152.08B
Accounts Payable 7.33B 5.96B 9.96B 4.93B 4.25B
Current Liabilities 23.07B 20.04B 22.2B 13.59B 12.68B
Short-term Borrowings 4.55B 4.16B 2.74B 2.66B 3.23B
Long-term Borrowings 64.17B 70.41B 65.94B 48.31B 44.64B
Total Borrowings 68.72B 74.58B 68.68B 50.97B 47.87B
Foreign Liabilities 66.85B 71.52B 66.86B 50.87B 46.78B
Shareholders' Funds 108.51B 85.28B 80.77B 78.8B 58.85B

Income Statement Accounts

Sales 72.86B 62.13B 56.1B 49.48B 47.45B
Cost of Sales 10.68B 9.51B 9.13B 7.95B 7.32B
Total Revenues 81.32B 69.93B 60.66B 56.06B 55.39B
Operating Expenses 28.42B 23.76B 20.86B 20.34B 20.33B
Depreciation 10.29B 8.66B 7.35B 5.95B 5.44B
Interest Expense 7.3B 6.67B 5.42B 4.64B 4.33B
Taxes Paid 3.1B 2.02B 3.16B 2.38B 2.41B

Other Financial Information

Net Working Capital 12.34B 4.88B 3.45B 10.59B 3.4B
Net Debt (Net Cash) 45.22B 60.62B 52.52B 34.29B 39.18B
Enterprise Value 246.58B 273.06B 197.4B 175.85B 270.75B
 FINANCIAL HIGHLIGHTS
MBT - Metropolitan Bank and Trust Company

2018 2017 2016 2015 2014

Income Statement Accounts

Interest Income on Loans 79.66B 63.39B 51.27B 44.18B 39.83B
Interest Income 97.19B 80.32B 68.18B 65.56B 59.29B
Net Interest Income 68.82B 61.41B 52.95B 48.97B 45.76B
Provision for Loan Loss 7.77B 7.51B 7.34B 2.06B 4.85B
Non-interest Income 22.91B 22.55B 25.67B 18.76B 29.23B
Total Income 120.97B 103.56B 94.11B 84.73B 88.53B
Total Costs 89.79B 74.3B 67.17B 58.85B 65.33B
Interest Expense on Deposits 18.97B 12.61B 9.89B 11.16B 9.3B
Interest Expense 28.36B 18.92B 15.23B 16.58B 13.53B
Income Before Tax 31.18B 29.26B 26.94B 25.88B 28.49B
Taxes Paid 7.75B 7.99B 6.62B 5.24B 6.46B
Income Excl. Nonrecurring
Items 22.01B 18.22B 18.09B 18.63B 20.11B
Net Income 22.01B 18.22B 18.09B 18.63B 20.11B

Balance Sheet Accounts

Earning Assets 2.15T 2T 1.8T 1.67T 1.52T
Total Assets 2.24T 2.08T 1.88T 1.76T 1.6T
Loans and Advances 1.73T 1.6T 1.44T 1.17T 1.13T
Total Deposits 1.56T 1.53T 1.39T 1.26T 1.18T
Forex Liabilities - - - - -
Shareholders' Funds 282.96B 194.56B 196B 193.76B 150.13B

Growth Ratios
Net Interest Income Growth 12.08 15.98 8.11 7.02 19.58
Pre-tax Income Growth 6.56 8.62 4.09 -9.17 -8.31
Income net of Nonrecurring
Growth 20.77 0.76 -2.89 -7.4 -10.56
Earning Assets Growth 7.62 11.29 7.32 10.18 16.8
Total Assets Growth 7.85 10.89 6.55 9.73 16.39
Customer Loans Growth 7.7 11.74 22.19 3.72 22.31
Total Deposits Growth 1.88 9.98 10.44 6.21 16.55
Interest Liabilities Growth 4.95 12.16 7.86 8.06 17.36
Shareholders' Funds Growth 45.44 -0.74 1.16 29.06 11.3
 AP - Aboitiz Power Corporation

2018 2017 2016 2015 2014

Earnings Summary
Net Income Excl. Nonrecurring Items 21.71B 20.42B 20B 17.6B 16.71B
Net Income 21.71B 20.42B 20B 17.6B 16.71B
EBITDA 49.12B 45.69B 38.75B 33.5B 32.07B
EBIT 40.44B 38.09B 32.7B 29.18B 27.42B
EBT 28.36B 26.85B 25B 22.54B 21.43B

Balance Sheet Accounts

Cash 46.34B 35.7B 47.09B 51.1B 40.23B
Trade Receivables 12.81B 14.6B 12.16B 9.97B 9.53B
Accounts Receivable 21.72B 17.36B 15.47B 13.69B 12.33B
Current Assets 88.71B 67.96B 73.65B 70.41B 56.73B
Inventory 6.69B 5.64B 4.45B 2.04B 2.17B
Fixed Assets 207.11B 204.03B 192.98B 134.81B 119.65B
Total Assets 389.66B 361.48B 357.01B 242.49B 216.76B
Accounts Payable 9B 7.81B 7.59B 5.75B 5.45B
Current Liabilities 46.82B 49.31B 32.8B 22.55B 16.89B
Short-term Borrowings 20.24B 25.41B 11.61B 4.94B 1.49B
Long-term Borrowings 149.36B 131.36B 151.91B 56.01B 41.39B
Total Borrowings 169.6B 156.77B 163.53B 60.94B 42.89B
Foreign Liabilities 41.38B 45.86B 59.08B - -
Shareholders' Funds 127.71B 115.4B 105.11B 97.57B 91.96B

Income Statement Accounts

Sales 131.57B 119.39B 89.16B 85.17B 86.76B
Cost of Sales 71.68B 63.95B 46.23B 46.43B 50.87B
Total Revenues 136.81B 125.02B 95.56B 90B 91.83B
Operating Expenses 14.71B 13.67B 10.58B 9.74B 8.89B
Depreciation 8.68B 7.6B 6.04B 4.32B 4.64B
Interest Expense 12.08B 11.25B 7.7B 6.63B 5.99B
Taxes Paid 2.93B 3.86B 3.5B 3.59B 3.42B

Other Financial Information

Net Working Capital 41.89B 18.65B 40.85B 47.86B 39.84B
Net Debt (Net Cash) 123.26B 121.07B 116.43B 9.84B 2.65B
Enterprise Value 381.55B 426.82B 423.29B 316.7B 318.34B
 Portfolio Holdings

Purchase Order History

Selling of Stock History
 Virtual Stock Trading
ACC212 - Financial Markets Final Requirement
Paper due date: August 2O, 2O19
(Please note that late papers will lose 5pts per day)

Stock trading today is just within reach by anyone who wishes to earn more than their basic salary or
income. People now become curious and eventually, learn to how trade. This final requirement’s goal is to develop
the trading skills of the students enrolled in this subject by applying the fundamental analyses and tools used in
stock investment. And that later on, they will be encouraged to use true money to earn and gain.
In this 4-week-virtual trading, you will be given P100,000 virtual money to invest into any corporate
stocks available in the trading platform. During the project, you will be asked to identify changes in the market
and analyze the outcomes of your investment. The purpose of using Virtual Stock Trading is to give you a better
understanding of trading strategies and portfolio management.
Instructions(5 Points):
1.Make an account in flight.firstmetrosec.com.ph
1st screen - Choose peso account
2nd screen - Account type must be individual; For employer, kindly put UM and position is student; All
necessary information must be filled up, NA for not applicable parts and OOO-OOO-OOO for numbers
you do not have
3rd screen - Investment objective must be “Quick trade”; Investment to be Handled by “Customer”;
Registration of Stocks Bought “Name of Account”; All others questions must be “No”
2. You will have P100,000 as your start up capital.
3. In your 4 week watch, you must have at least 3, and at most 4 stocks in your portfolio.
4. Make sure that you were able to buy & sell at least 5 times any of the stocks that you bought before
August 15, 2O19.
5. All purchases must have a corporation research worksheet.
TRADING JOURNAL guide questions
o Introduction(10 Points):
 What is your expectation on this requirement?
 What is your investment philosophy/strategy?
 How does your risk tolerance affect your buying behavior?
 How is the stock market doing today, what is its current situation?
o Research on investment strategies and companies(10 Points)
 What were your initial expectations for your stocks?
 Cite at least three investment strategies and describe these briefly.
 Attach in the appendix brief corporation research about the stocks you have bought, plus
their market performance for the past three years
o Purchase/Sale of stocks(25 Points+5 points to the highest earner): (sample topics
below, please include all relevant information that explains your purchase/sale decision)
 Why did you choose the stocks you did? Explain how your research about the stocks you
bought, and significant amounts of your company, affected your buying decision
 Would you classify your stocks as aggressive or conservative?
 What role did the industry play in picking your stocks?
 Did any media news play a role in your purchases?
 What was your best performing stock AND least performing stock and what is your
total return on investment did it provide?
 What made you sell the stock?
 Overall Summary (20 Points)
 What is the overall impact of this activity to you and what are the lessons that you
learned?
 How much money did you make or lose in total and what return on investment did it
provide? Provide a table of how much you bought your stocks for, how much you earned
and your ROI\Total Holding Period return(capital gains + dividend yield] percentage for
each stock bought.
 What would you do differently next time to be more successful with your investments?
 What did you enjoy about the project?
o Appendix(5 Points):
 Neatly print out your portfolio holdings, your order history, and 3-year stock chart
of each company that you were able to buy and sell (3 companies each page)
 A company research worksheet should be attached for each purchase

Grading Rubric:
 Category Points Available Points Earned
Follow Investment Guidelines 5
Introduction 10
Research of Companies 10
Purchase/Sale of Stock 25
Overall Summary 20
Appendix 5
Total 75
 REFERENCES

Edge, A. (2012). Company Information. Retrieved from

http://edge.pse.com.ph/companyInformation/form.do?cmpy_id=57

Domingo, B. (2017). Aboitiz Power to raise P8.4B from IPO, Retrieved from

https://www.gmanetwork.com/news/money/content/39818/aboitiz-power-to-
raise-p8-4b-from-ipo/story/

Stewart, R. (2017). ANZ to Sell Half of Stake in Philippines-Based Metrobank Card

Corp for A$184 Million. Retrieved from

https://www.foxbusiness.com/features/anz-to-sell-half-of-stake-in-philippines-
based-metrobank-card-corp-for-a184-million

Colima, M. (2019). ICTSI wins tender for new Manzanillo terminal. Retrieved from

https://container-mag.com/2009/12/02/ictsi-wins-tender-for-new-manzanillo-
terminal/