If you are looking at how to invest in Cebu pacific, then you came to the right place! There will be no technical jargon or complicated terms here today, just a simple step-by-step guide on how to invest in Cebu Pacific.
When we look at how to invest in Cebu Pacific, we are essentially focusing on the stock market and how you can hopefully make a good return from this investment. We will also be going through 3 bonus hacks on buying stock in the Philippines stock exchange.
How To Invest In Cebu Pacific In The Philippines
before Investing, Fully Research Cebu Pacific
If you are looking at how to invest in Cebu Pacific, you may have already done a considerable amount of research about this company.
However, for those who haven’t, allow me to go through step one briefly. It is often said that you should spend as much time researching a company as it took you to earn that money.
In other words, if you are investing 20,000 pesos and that took you three weeks to earn, then you should spend a minimum of three weeks researching the investment. Whether this is right or not, I’ll leave you to decide. But what is for sure is that research into an investment is critical for any investor, whether new or experienced.
What should you research when you’re looking at how to invest in Cebu Pacific?
Here are a few examples.
- The Historical Stock Price
- The Industry
- Governmental Plans For The Industry
- Corporations Five-Year Plan
- Assets And Liabilities
- Loans And Repayments
- Business Behaviours
This is just a brief list, but many other things can be included in the research.
For reference, there are three main website transfers used to gather some basic research.
1. Open A Stock Trading Account
After research, It is now time to open up your stock trading account. At this stage, this is where many people are concerned, but the process is straightforward. There are a few different stock traders across the Philippines. The most popular arguably is COL Financial.
COL Financial is an online stock trader, which means once you have an account with them, you can buy and sell shares directly on your laptop from the comfort of your own house through their platform.
You can contact them on their Facebook or drop into one of their many branches across the Philippines. Opening an account is broken down into 3 stages.
COL financial will need to following information (other brokers typically ask for the same information)
- 1 valid government-issued ID
- Tax Identification Number (TIN)
- For non-resident foreign applicants: 1 valid passport
- For resident foreign applicants: 1 valid passport and Alien Certificate of Registration (ACR) or Work Permit from DOLE
At this stage, it’s time to fill in the application form to open your stock trading account. Again, you have two options: you can either fill in their online form, print the form, fill it in, and return it to COL financial.
Once COL financial has approved your account, the next stage would be to fund your account.
This can be done through many processes, such as free online banking, with many mainstream banks sending payment to COL Financial. You can also fund your account by an over-the-counter method. After this process is complete and your funds are in the account, we now move on to step 3. That is determining your buying price.
2. Determine Your Buying Price
When it comes to stocks, they can be extremely volatile at times, while other days, they barely move. The market is indeed an unpredictable system at times!
Our third step is to determine what price we are willing to buy the stock at. This week, for example, the cost of Cebu Pacific stock has been floating around the 50 peso mark.
0.5 or 1 peso may not seem a lot, but if you are investing 50,000 pesos or 500,000 pesos or 10,000,000 pesos, then that extra 0.5 or 1 peso can accumulate to a staggering amount. Hence, determining your buying price when you decide to buy stocks is a significant thing.
When you wonder how to invest in Cebu Pacific, one thing you may often think about is the value of the Cebu Pacific stock.
Many different factors determine value, and of course, the cost goes up and down every day. So, for example, perhaps the company announces they’re bringing in a new product range not only will this benefit its customers, but the company could see a massive increase in its stock price during the year.
When you wonder how to invest in Cebu Pacific, you may also be excited about the future and the potential returns…. However, emotions and investments are never a good mix when you invest, so it’s recommended you take a step back if you experience emotions.
3. Make Your Offer
Now it’s time to make your offer and buy your Cebu Pacific stocks. When you buy any stock through COL, the process is very simple.
First, take a look at the board lot. This is the minimum number of stocks you will need to buy to complete your transaction.
Once you have made the offer, the next screen will appear, asking you to confirm your purchase and showing you any tax that may be applicable. The great thing about COL financial is they take care of the tax for you!
4. Investment Complete
Once the transaction has been completed, you will get a notification, and you will then be able to see the stock in your portfolio.
You will only be able to buy stocks when somebody is selling the stock at that price.
Therefore if the price suddenly goes up and no one is selling the stock, you will either need to enter a new request for a higher amount or leave your request and hope the price goes down later in the day.
When trying to buy new stocks, there is an expiry time. Also, due to the recent coronavirus, the stock market has shortened its working times which means you may only have a few hours each day to invest in your stock.
3 tips for investing in Cebu pacific
Tip 1. research the company behavior
Researching company behavior is typically an underestimated tactic when investing in the Philippine Stock Exchange.
When you are looking into how to invest in Cebu pacific, you will research the company but may not explicitly be looking at the company’s behavior.
What often happens with new investors is they sometimes focus on what’s already happened, and even though that is a crucial thing to do, it does not always guarantee future outcomes.
Researching company behavior (In other words, what they are doing right now and what their plans are for the future) will help you gauge if this is the right investment for you and if investing at this time is the right thing to do.
Tip 2. Determine your goal
When we look into how to invest in Cebu Pacific, we must always determine our goal. This can help during periods of ups and downs with the market, and it can also help us in the present time when we are deciding how much or how often to invest.
Let’s say, for example. You would like to invest 100,000 pesos in Cebu Pacific in the next 6 months.
Therefore you would need to invest a minimum of 16,666 pesos every month for the next six months to hit your target.
Now let’s say your investment goal is to reach 150,000 pesos. If Cebu Pacific grows its business, and as a result, its stock increases 10% each year, then…
- Year 1 ) Your current investment pot = 100K + 10% = 110,000
- Year 2 ) Your current investment pot = 110K + 10% = 121,000
- Year 3 ) Your current investment pot = 121K + 10% = 133,100
- Year 4 ) Your current investment pot = 133,100 + 10% = 146.410
As we can see from the maths above, after four years of the rate of 10%, your investment portfolio will be just under 150,000 pesos.
Doing the maths on any investment like this will help you determine your goal, how much you should invest, and most importantly, when is the best time for you to withdraw your finances.
Tip 3. Focus on the future
Some of the best stocks in the world were once at rock bottom prices due to a government announcement, a mistake in the company, or some information that was released to the public.
Therefore when you invest in a stock, it’s essential to focus on the future of that stock and not on the current trends.
When we focus on the future, we look into other areas, such as the industry itself. So apart from looking at Cebu Pacific and its operations. What about travel in the Philippines. Will more foreigners be entering the Philippines in the future? Will there be an increased need for travel? Will any government announcements can affect this industry?
All these questions will help you determine the future of the industry and can help you in your assistance when you are looking to buy stocks in the Philippines.
I always say that every business and investment here on Filipino wealth makes sure you seek independent financial advice on all your investments and business endeavors. The very best of luck with your investment, And I hope you were able to find some value from today’s article.
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