DIGEST: LEVISTE vs. CA, G.R. No. 189122, March 17, 2010

Facts: Petitioner Leviste was charged with the murder of de las Alas. He was convicted by RTC Makati. He appealed his conviction to CA. Pending appeal, he filed an urgent application for admission to bail pending appeal, citing his advanced age and health condition, and claiming the absence of any risk or possibility of flight on his part. CA denied application, citing well-established jurisprudence which ruled that bail is not a sick pass for an ailing or aged detainee or a prisoner needing medical care outside the prison facility. Petitioner now questions as grave abuse of discretion the denial of his application for bail, considering that none of the conditions justifying denial of bail under the third paragraph of Section 5, Rule 114 of the Rules of Court was present. Petitioner contends that the penalty imposed by the trial court is more than six years but not more than 20 years and the circumstances mentioned in the third paragraph of Section 5 are absent, bail must be granted to an appellant pending appeal.

Issue: In an application for bail pending appeal by an appellant sentenced by the trial court to a penalty of imprisonment for more than six years, does the discretionary nature of the grant of bail pending appeal mean that bail should automatically be granted absent any of the circumstances mentioned in the third paragraph of Section 5, Rule 114 of the Rules of Court? [Bail NOT automatically granted]

Ratio:  The third paragraph of Section 5, Rule 114 applies to two scenarios where the penalty imposed on the appellant applying for bail is imprisonment exceeding six years. First, if none of the circumstances mentioned in the third paragraph of Section 5, Rule 114 is present, the appellate court has the discretion to grant or deny bail. An application for bail pending appeal may be denied even if the bail-negating circumstances in the third paragraph of Section 5, Rule 114 are absent. Second, if one of the circumstances enumerated in the third paragraph is present, the appellate court exercises a more stringent discretion, that is, to carefully ascertain whether any of the enumerated circumstances in fact exists. If the appellant’s case falls within the second scenario, the appellate court’s stringent discretion requires that the exercise thereof be primarily focused on the determination of the proof of the presence of any of the circumstances that are prejudicial to the allowance of bail. This is so because the existence of any of those circumstances is by itself sufficient to deny or revoke bail.

Nonetheless, a finding that none of the said circumstances is present will not automatically result in the grant of bail. Such finding will simply authorize the court to use the less stringent sound discretion approach. Because of the foregoing, SC ruled that CA did not exercise its discretion in a careless manner but followed doctrinal rulings of SC.

DIGEST: HRS. BURGOS vs. CA, G.R. No. 169711, February 8, 2010

 
Facts: Co is charged with murder and frustrated murder. Co pleaded not guilty. Thereafter, respondent Co filed a petition for admission to bail. After hearing, the RTC granted bail on the ground that the evidence of guilt of respondent Co was not strong. Heirs of petitioner moved for reconsideration but the RTC, now presided over by another judge, denied the same. This prompted the victim’s heirs to file a special civil action of certiorari with prayer for a temporary restraining order or preliminary injunction before the CA. The CA however dismissed the petition for having been filed without involving the Office of the Solicitor General(OSG), in violation of jurisprudence and the law, specifically, Section 35, Chapter 12, Title III, Book IV of the Administrative Code.

Issue: Whether or not the CA correctly dismissed the special civil action of certiorari, which questioned the RTC’s grant of bail to respondent Co, for having been filed in the name of the offended parties and without the OSG’s intervention. [CA CORRECTLY dismissed the petition.]

Ratio: The purpose of a criminal action, in its purest sense, is to determine the penal liability of the accused for having outraged the state with his crime and, if he be found guilty, to punish him for it. In this sense, the parties to the action are the People of the Philippines and the accused. The offended party is regarded merely as a witness for the state. Also in this wise, only the state, through its appellate counsel, the OSG, has the sole right and authority to institute proceedings before the CA or the Supreme Court.

As a general rule, the mandate or authority to represent the state lies only in the OSG. The interpretation of Sec. 35 of the Administrative Code provides that it is mandatory upon the OSG to “represent the Government of the Philippines, its agencies and instrumentalities and its officials and agents in any litigation, proceeding, investigation or matter requiring the services of a lawyer.” For that reason, actions essentially involving the interest of the state, if not initiated by the Solicitor General, are, as a rule, summarily dismissed. Here, the question of granting bail to the accused is but an aspect of the criminal action, preventing him from eluding punishment in the event of conviction.

SAMPLE: Acknowledgment (Individual)

REPUBLIC OF THE PHILIPPINES)
______________________________) S.S.
 
 

ACKNOWLEDGMENT

 
 
           BEFORE ME, this ______ of ____ personally appeared, _______________________exhibiting to me her/his ______________________, known to me and to me known to be the same person who executed the foregoing instrument which (he/she) acknowledged to me as (his/her) free and voluntary act and deed.
 
 
            This document is a _______________consisting of ____ (_) pages, including the page where this Acknowledgment is written, and was executed and signed by the parties on each and every page hereof.

            WITNESS MY HAND AND SEAL on the date and place first above written.

 

 

Doc. No. ______;

Page No. ______;

Book No. ______;

Series of ______.

DIGEST: Asiaworld Properties Philippine Corporation vs CIR, G.R. No. 171766, 29 July 2010

Doctrine: Once the taxpayer opts to carry-over the excess income tax against the taxes due for the succeeding taxable years, such option is irrevocable for the whole amount of the excess income tax, thus, prohibiting the taxpayer from applying for a refund for that same excess income tax in the next succeeding taxable years. The unutilized excess tax credits will remain in the taxpayer’s account and will be carried over and applied against the taxpayer’s income tax liabilities in the succeeding taxable years until fully utilized.

 

Facts: Petitioner Asiaworld Properties Philippine Corporation (petitioner) is a domestic corporation engaged in the business of real estate development. 

- For the calendar year ending 31 December 2001, petitioner filed its Annual Income Tax Return (ITR) on 5 April 2002.

 - In its 2001 ITR, petitioner stated that the amount of P7,468,061.00  representing Prior Year’s Excess Credits was net of year 1999 excess creditable withholding tax to be refunded in the amount of P18,477,144.00.

·       Petitioner also indicated in its 2001 ITR its option to carry-over as tax credit next year/quarter the overpayment of P6,473,959.00. 

- On 9 April 2002, petitioner filed with the Revenue District Office   No. 52, BIR Region VIII, a request for refund in the amount of P18,477,144.00, allegedly representing partial excess creditable tax withheld for the year 2001.

·       Petitioner claimed that it is entitled to the refund of its unapplied creditable withholding taxes.

- Petitioner filed a Petition for Review with the Court of Tax Appeals to toll the running of the two-year prescriptive period provided under Section 229 of the NIRC.

- CTA: denied the petition for lack of merit.

- CA:  

·       under Section 76 of the NIRC of 1997, when the income tax payment is in excess of the total tax due for the entire taxable income of the year, a corporate taxpayer may either carry-over the excess credit to the succeeding taxable years or ask for tax credit or refund of the excess income taxes paid.

·       Section 76 explicitly provides that once the option to carry-over is chosen, such option is irrevocable for that taxable period and the taxpayer is no longer allowed to apply for cash refund or tax credit.

·       In this case, petitioner chose to carry-over the excess tax payment it had made in the taxable year 1999 to be applied to the taxes due for the succeeding taxable years. The Court of Appeals ruled that petitioner’s choice to carry-over its tax credits for the taxable year 1999 to be applied to its tax liabilities for the succeeding taxable years is irrevocable and petitioner is not allowed to change its choice in the following year. The carry-over of petitioner’s tax credits is not limited only to the following year of 2000 but should be carried-over to the succeeding years until the whole amount has been fully applied. 

          

Issue: Whether the exercise of the option to carry-over the excess income tax credit, which shall be applied against the tax due in the succeeding taxable years, prohibits a claim for refund in the subsequent taxable years for the unused portion of the excess tax credits carried over. – Yes, claim for refund is now prohibited.

 

Ratio:

 

          The resolution of the case involves the interpretation of Section 76[1] of the NIRC of 1997. The confusion lies in the interpretation of the last sentence of the provision which imposes the irrevocability rule.

         

          The Court cannot subscribe to petitioner’s view. Section 76 of the NIRC of 1997 clearly states: “Once the option to carry-over and apply the excess quarterly income tax against income tax due for the taxable quarters of the succeeding taxable years has been made, such option shall be considered irrevocable for that taxable period and no application for cash refund or issuance of a tax credit certificate shall be allowed therefore.”  Section 76 expressly states that “the option shall be considered  irrevocable for that taxable period” – referring to the period comprising the “succeeding taxable years.” Section 76 further states that “no application for cash refund or issuance of a tax credit certificate shall be allowed therefore” – referring to “that taxable period” comprising the “succeeding taxable years.”

 

        Under Section 76 of the NIRC of 1997, the application of the option to carry-over the excess creditable tax is not limited only to the immediately following taxable year but extends to the next succeeding taxable years. The clear intent in the amendment under Section 76 is to make the option, once exercised, irrevocable for the “succeeding taxable years.” Thus, once the taxpayer opts to carry-over  the excess income tax against the taxes due for the succeeding  taxable years, such option is irrevocable for the whole amount of the excess income tax, thus, prohibiting the taxpayer from applying for a refund for that same excess income tax in the next succeeding taxable years. The unutilized excess tax credits will remain in the taxpayer’s account and will be carried over and applied against  the taxpayer’s income tax liabilities  in the succeeding taxable years until fully utilized.

        In this case, petitioner opted to  carry-over its 1999 excess income tax as tax credit for the succeeding taxable years. As correctly held by the Court of Appeals, such option to carry-over is not limited to the following taxable year 2000, but should apply to the succeeding taxable years until the whole amount of the 1999 creditable withholding tax would be fully utilized.           

 

---

[1] SEC. 76. Final Adjustment Return. – Every corporation liable to tax under Section 27 shall file a final adjustment return covering the total taxable income for the preceding calendar or fiscal year. If the sum of the quarterly tax payments made during the said taxable year is not equal to the total tax due on the entire taxable income of that year, the corporation shall either:

 

            (A) Pay the balance of tax still due; or

            (B) Carry-over the excess credit; or

            (C) Be credited or refunded with the excess amount paid,

                   as the case may be.

 

            In case the corporation is entitled to a tax credit or refund of the excess estimated quarterly income taxes paid, the excess amount shown on its final adjustment return may be carried over and credited against the estimated quarterly income tax liabilities for the taxable quarters of the succeeding taxable years. Once the option to carry-over and apply the excess quarterly income tax against income tax due for the taxable quarters of the succeeding taxable years has been made, such option shall be considered irrevocable for that taxable period and no application for cash refund or issuance of a tax credit certificate shall be allowed therefore. (Emphasis supplied)

 

SAMPLE: Jurat

 

REPUBLIC OF THE PHILIPPINES)

____________________________  )S.S.

 

 

JURAT

 

 

            SUBSCRIBED AND SWORN to before me, this _____________ day of _______, in ________, by ___________________ with competent evidence of identity _____________issued on __________________, valid until _____________.

 

 

 

Doc. No. ______;

Page No. ______;

Book No. ______;

Series of ______;//

SAMPLE: Quitclaim (Tagalog)

 

REPUBLIKA NG PILIPINAS   )

Lungsod ng ______                   ) S.S.

 

SALAYSAY

 

AKO, si __________________________________, Pilipino, may sapat na gulang, at naninirahan at may pahatirang sulat sa ___________________________________________________________, matapos manumpa nang sang-ayon sa ipinag-uutos ng batas ay malaya at kusang-loob na nagsasalaysay:

Ako ay nagtrabaho sa ABC Company mula noong _________ hanggang __________bilang _________. Kaugnay sa pagiging empleyado at sa kusang pag alis ko mula sa ABC Company ay tinatanggap ko ng buong lugod ang halagang _____________________________________________Piso(Php ___,000.00) bilang kabayaran sa lahat ng benepisyong itinakda ng batas para sa akin at tulong pinansyal;

DAHILAN DITO AT ALANG-ALANG SA NASABING HALAGA:

1. Pinalalaya at pinapawalang sala ko ang ABC Company, at ang tagapamahala, kinatawan at kahalili nito tungkol sa ano mang pananagutan at/o paghahabol na maaaring mayroon akong laban sa kanila kaugnay sa aking empleyo sa ABC Company.

2. Ipinangangako at ipinababatid ko na ring hindi ako maghahabol laban sa ABC Company,  tagapagmahala, at kinatawan ng mga ito, ng ano pa mang halaga or reklamong may kaugnayan sa aking empleyo sa ABC Company.

3. Sumasang-ayon ako at nagpapahayag na sa halagang nabanggit sa itaas at aking natanggap, bahagi na ang lahat ng sahod at mga benepisyong tinatakda ng batas, polisiya at kaugalian, at kaugnay sa paglilingkod ko sa ABC Company, ang halagang nabanggit sa itaas nito ay kumakatawan sa buong kabayaran ng anumang dapat matanggap ko.

SA KATUNAYAN NG LAHAT NG ITO, ako ay lumagda sa ibaba nito, ngayong ika-____ ng ___________, dito sa  _______.

 

 

___________________________

Nagsalaysay

 

 

            NILAGDAAN AT SINUMPAAN sa harap ko, ngayong ika-_____ ng ___________ ni _____________________, na may ID no.__________________ .

 

Kas. Blg. _____;

Dahon Blg. _____;

Aklat Blg. _____;

Taong  20___. //

 

SOUND BOARD: Etoro Social Investing Update

WOW! 

It's been a while since I have updated this blog. Today is November 30 and it's Bonifacio Day, a holiday, a non-trading day in the Philippines. This is a very special day so I want to celebrate this day by updating this blog. What a weird way to celebrate! Hehehe.

Anyway, I am just happy to share with you that the traders I copied in Etoro are now making profits after experiencing volatility in US stock market. There has been a renewed optimism in the market after news of potential vaccines against COVID-19 came out. 

I will be doing a separate blog on what led me to social investing in Etoro and what led me to "copy trade" Miyoshi, jianswang and MarianoPardo, so please watch out for that.

I started to copy trade Miyoshi in May, and jianswang and MarianoPardo in October. So far, jianswang's cumulative performance in just one month is superb at 14.19%. 

My profits from my initial investment in Miyoshi has always been steady at 4% to 8% since May, but I hope that it will still improve in time for the yearend. Meanwhile, my profits from MarianoPardo are now climbing up and starting to pick up the pace after I suffered a paper loss of at least 4% early in November because of him. Good thing, my investment horizon for social investing is long-term, thus I am not rattled by that temporary drawback in my portfolio. 

In any case, I trust that the trio would be able to sustain their profitable performance given any market condition because they are skillful traders --- precisely that is why I chose to copy trade them. They know what to do!

Etoro Portfolio as of 30 Nov 2020

Etoro newsfeed as of 30 Nov 2020

SOUND BOARD: Yay! PSEi was up but why?

1. The Philippine Stock Exchange Index (PSEi) is a capitalization-weighted index composed of stocks representative of the Industrial, Properties, Services, Holding Firms, Financial and Mining and Oil Sectors of the Philippine Stock Exchange (PSE) [Bloomberg]. It  was up on 29 May 2020 because we had a net foreign buying of 955.39 Million Pesos; that means, foreign investors were buying shares of stocks in the PSE more than they were selling, which drove the PSEi up by 4.82% or 268.62 points from 5570.22 to 5,838.84 level. The proximate cause could be that there is some level of certainty now that businesses in the Philippines will open and operate come June 01, prompting foreign investors or traders to come in.

Net foreign buying of 955.39M catapulted PSEi above its 50-day Exponential Moving Average 

2. The role of foreign investors or traders in the PSEi is important as they add volume and liquidity in an otherwise thin market; simply put, they have the money that could instantly impact the performance of the PSEi. Absent foreign investors or traders participating in the stock market, PSEi would have no momentum to rally and breakout from its resistance level as what happened to PSEi in the past two and a half months.

The encircled green long column signifies large buying volume which can be primarily attributed to net foreign buying.

3. It is actually only the second time since March 16 that we had net foreign buying. The first time was on 05 May 2020. All other days, we had net foreign selling, which suggests that foreign investors are pulling out their money from the market and placing it somewhere else. If we "follow the money" as the saying goes, we will probably end up in the global market where there is volume and liquidity. That's why some popular traders or investors have also focused their attention to the global market. I just follow suit and am starting to learn more about trading and investing in the US stock market for diversification.  Of course, it is always recommended to invest or trade in our own stock market to help our economy recover or grow faster.

THINK PIECE: To buy or not to buy MerryMart at its IPO price of Php 1.00 per share?

(Disclaimer: This is not a stock or investment recommendation. I am just thinking aloud. )

  

Image courtesy of https://merrymart.com.ph/

I am thinking about it.

Since I am not fully convinced in buying MerryMart Consumer Corp. (MM) at its Initial Public Offering (IPO) price of Php 1.00 per share, the answer is NO...for now. But I will monitor MM's stock price on  June 15 (listing date) and perhaps do some intraday trading if the price is right.

As you may have already known, MM is a new player in the grocery and pharmacy retail industry, aiming to compete against the likes of Puregold, Robinsons, Mercury Drug, Metro Gaisano, and SM. MM's primary shareholder is Injap Investments, Inc. , which is the investment holding company of the Sia family --- the family behind Mang Inasal and Double Dragon Properties Corp.

MM seems to be attractive based on its prospectus. However, as of this writing, I am uncertain if it will be a good buy at Php 1.00 per share. I have considered the following factors:

1. Valuation.

MM is overvalued because it has a Price-to-Earnings Ratio (PER) of 271.2x in 2019 as compared to the average industry PER of 20.39x in 2019; this PER suggests that investors are willing to pay Php 271.2 for every peso of MM's earnings, when in fact, on the average, investors are only willing to pay Php 20.39 per peso-earnings in the retail industry. 

Puregold only has a PER of 19.88x in 2019, while  RRHI, the group that operates South Star Drug, has 32.13x. You can compare the PER of MM to the PERs of its competitors as shown below:

Image courtesy of https://www.abcapitalsecurities.com.ph

For an IPO, I prefer to buy stocks at a price close to the average industry PER regardless if it is above or below the average industry PER. In this case, MM's PER is 1,230% greater than the average industry PER. It is a huge difference, thus stockholders will definitely be paying a premium for a share of MM stock at Php 1.00.

When a stock is overvalued, its price tends to go lower. Hence, there is a huge possibility that MM's price would drop from Php 1.00/share. If it happens, stockholders who bought the stock at Php 1.00 would be at loss, unless they managed to immediately sell the stocks at a higher price or managed to cost-average.

2. Use of IPO proceeds. 

A company is attractive if a substantial amount of the IPO proceeds goes to expansion rather than debt repayments. As investor, I do not want to invest in a company which will use my money just to pay off its debts. I want the company to use the money to grow and reap profits.

In the case of MM, substantial amount of IPO proceeds will go to capital expenditure and working capital for store network expansion thereby making MM very attractive. In fact, MM's prospectus shows that no IPO proceeds will be used for debt repayment. 

Screenshot of MM's prospectus re: Use of Proceeds 

However, it bears noting that MM wants to achieve faster expansion through franchising according to its prospectus. This begs the question: what really are the IPO proceeds for if MM will capitalize on the financial capabilities of its own franchisees for its expansion?

3. Business Model and niche market. 

A company is attractive if it will address specific market needs which a very few establishments only satisfy. As investor, I do not want the company to dip into a saturated market.

 

In a saturated market, there is already a lot of companies offering the same products and services meeting the demands of the market. There is no untapped demand in a saturated market, hence there is no need for a new player to come in unless the new player introduces an innovation in the market.

In the case of MM, its "innovation" is its "three-in-one concept", which combines a mini-grocery, personal care shop, and pharmacy in one store. According to MM's prospectus, this innovation of 3-in-1 store "will eliminate the need for several management positions and streamline this requirement to one pharmacist who will also act as the branch manager of the said three-in-one household essentials store."

You may observe that Mercury Drug, South Star Drug and Watsons already have this 3-in-1 concept. In all of these stores, you could buy your groceries and personal care products, and at the same time buy your medicines. Mercury Drug and South Star Drug also have 24/7 stores like any other convenience store.

But it would be nice to have more convenience stores with pharmacies scattered all over the country, right?! That could be MM's market niche.

4. The fact that Edjar "Injap" Sia is the man behind MM.

Injap Sia was successful during the IPO of Double Dragon Properties Corp. when its price rose 50% at its PSE debut. Manny Villar was also successful during the IPO of Golden Haven Memorial Park when its price rose 49.90% at its PSE debut, but he did not get the same results during the IPO of AllHome Corp. This begs the question, will there be a repeat successful performance for Injap Sia? History taught us that there is no guarantee for a repeat successful performance. But anything is possible. 

5. Increased demand for groceries and pharmaceuticals during the COVID-19 pandemic.

During the Enhanced Community Quarantine, supermarkets, convenience stores and pharmacies were one of the few establishments which were allowed by the Philippine government to operate. They are considered essential. Thus, it is nothing but natural for MM to gain interests from investors because its operations are not as hardly hit by the pandemic as the other establishments; this is the reason why MM is already oversubscribed, according to PNB Capital.  This might also be the reason why MM is overvalued. Its business is essential and resilient in times of pandemic, and investors believe that it could produce higher earnings in the future.

Conclusion:

Will I buy after processing my thoughts? I am still thinking about it. 

If I finally decide not to buy MM at its IPO Price, I will observe MM's price action on June 15 and see if it is worth a trade. 

SOUND BOARD: What to expect because of the MSCI rebalancing

Image courtesy of https://fee.org/articles/the-law-of-supply-and-demand/

Expect the price of $PGOLD to go up and expect the price of $SECB to go down.

This is because fund managers who track the MSCI as its benchmark and mimic MSCI's basket of stocks will have to remove $SECB in their portfolio by selling $SECB, thereby driving the stock price of $SECB down. Supply up + demand down -> Prices down.

On the other hand, fund managers will update their portfolio by buying $PGOLD thereby driving the stock price of $PGOLD up. Demand up + supply down -> Prices up.

The Law of Supply and Demand in play! 

$PGOLD is expected to go up

When the news broke out that $SECB will be removed, its stock price immediately went down. 
You could see a gap.

[Note: This post may need prior knowledge on what happened in MSCI rebalancing. You may read it @ https://business.inquirer.net/297215/psei-loses-0-45-in-thin-trade]

THINK PIECE: Where to start to invest?

Image courtesy of https://www.bpiassetmanagement.com/pages/bpi-investment-funds/

The answer is: Start with your Bank!

1. Investing in and through your bank is the first step in exploring investment opportunities simply because that is where your money is.

Banks have what they call, "Unit Investment Trust Fund (UITF)". UITFs are like Mutual Funds (MF). They are both pooled investments being managed by a trust entity or investment management company. The managers of UITFs/MFs invest the fund in equities and other securities, and if the fund earns, you earn proportionately to the size of your subscription or portfolio.

You could buy or subscribe to UITFs/MFs straight from your bank accounts. It does not require investment experience. Hence, if you are just starting to invest or just starting to build your confidence in making riskier investment decisions, UITFs/MFs are good stepping stones.

Navigate your online bank accounts and look for UITF to subscribe

2. Barring recession and depending on the fund you choose, you can earn from UITFs at a rate of 4% to 20% per annum; these rates are better compared to .025% to 2% per annum that you can earn if you only let your money sleep on your savings accounts.

However, with higher rewards come higher risks. UITFs do not a guarantee a return. There will be times that UITFs have negative calendar year performance. Just don't panic and don't sell. They only reflect the natural movement of the stock market ---up and down. For down times, it is important to manage your risks by diversifying your portfolio. There goes the saying, "do not put all your eggs in one basket". It means, do not put 100% of your savings to UITFs.

3. In my experience, UITF was my first investment. From UITFs, I shifted to MFs and then to stocks. 

My first UITF investment was BPI Balanced Fund because that was the golden mean between the bonds fund and the equity fund. Based on my assessment at that time, I found the ROI in bonds fund too low for me, and the market volatility in equity fund too high for me. Thus, I just chose to invest in balanced fund because it got both bonds and equities in its investment allocation.

4. Hindsight 2020. I should have invested in equity fund for higher returns, now that I understand how the stock market works.

SOUND BOARD: Effects of ABS-CBN shutdown on other businesses

[This is raw]

70 Congressmen killed the franchise of ABS-CBN, the Philippines' largest network, because of their own personal vendetta against ABS-CBN. They put their personal interest first, ahead of  the interest of the Filipino people, their constituents. 

Instead of helping each and every Filipino and business to survive the crisis brought by COVID-19, the Congressmen chose to put an end to ABS-CBN's franchise at the expense of a lot of employees and other businesses. 

Effects:

- 11,000 people lost their jobs.

- Advertising companies lost their clients after losing half of the audience in TV market. See https://business.inquirer.net/296787/ad-companies-feel-impact-of-network-shutdown

- Investors lost confidence in the Philippines, seeing how the government can adversely affect the operations of businesses without regard to due process of law. See https://www.bworldonline.com/forced-closure-of-abs-cbn-may-hurt-investor-confidence/

- Domino Effect on other industries rendering services to ABS-CBN. See 

https://www.rappler.com/voices/thought-leaders/analysis-how-abs-cbn-exit-will-hurt-philippine-economy

- Research firm lost biggest client, ABS-CBN. See https://business.inquirer.net/306434/abs-cbn-shutdown-aftermath-research-firm-ad-agencies-also-cutting-jobs

- Less exposure of sports events. See https://cnnphilippines.com/sports/2020/7/17/ABS-CBN-Sports-retrenchment.html?fbclid=IwAR3Geb4kl6m-OyTIk8aFzmXM0V_Uj63X3xdezK-XtQLdc5XdzWfPUarGIWA

Given the adverse effects of the ABS-CBN shutdown to a lot of people, I can't help but think if the 70 Congressmen have conscience. 

This is indeed a very very sad episode in the history of the Philippines. 😞😢😟

THINK PIECE: How to save money

Image courtesy of https://www.slideshare.net/luizdeasis/building-wealth-through-philippine-stock-market-investing

Pay yourself first, then live within or below your means! That is the ultimate tip.

1. It just means that every time you receive your allowance or income, you immediately allocate a portion thereof to your savings.

There is no hard and fast rule on what percentage of your allowance/income should you allocate for savings. You can even start with just 1% or 2% of your allowance/income, but you have to save consistently and regularly until it becomes your habit. No buts, no ifs, no don'ts.

2. Whatever is left from your allowance/income, you allocate it to your expenses ---your budget for expenses. Then, you have to "live within your means". Meaning, you adjust your spending to make everything fit to your budget; this actually compels you to observe yourself and be mindful of the prices of goods you are spending on.

Once it becomes your habit to Pay Yourself First, that is the time that you can (gradually or drastically) increase the percentage of your savings allocation because you already have insights about your spending tendencies or habit, like you are now able to identify what expenses are dispensable. You may reallocate some of your funds from the expenses side to the savings side as you please.

With your hard-earned savings, you are now in a position to explore investment opportunities!

THINK PIECE: To buy or not to buy a Variable Life Insurance?

Simple answer: Buy only if you have dependents. If you do not have dependents, it is best that you invest your money in other income-generating securities for maximum capital appreciation or income growth.

1. Yes, buy a variable life insurance if there are other people relying or depending on your income (e.g. a family who depends on your financial support).

A life insurance guarantees that your beneficiaries (e.g. dependents) would get a certain amount of money in case of your demise. Thus, if you are concerned about the financial situation of your dependents after your death, then you need to buy a life insurance. 

It is best that you buy a life insurance as soon as you have a dependent (e.g. as soon as you build your family) because premium payment goes higher as you get older.

2. No, do not buy a life insurance if you do not have dependents (as in nobody relies on your financial support). If you prematurely buy it, you lose the chance of focusing your funds in other higher income yielding investments for maximum income growth or capital accumulation, because a portion of your premium payment in variable life insurance answers for the cost of insurance, which serves no purpose if you do not have a dependent.

At this point, what you can to do with your money is to invest it in mutual funds or other income-generating tools (e.g. stocks, bonds, unit investment linked fund) to earn more money.

Do not be worried about paying higher premium for variable life insurance should you decide to have a family later in your life, because you will be able to afford it because of the capital or income you have already accumulated in the past.

For a concurring expert opinion on the matter, you may watch the interview of Suze Orman with Karen Davila on ANC at 19.19 timestamp.