Distinguish Between Legitimate Multi-Level Marketing and A Pyramid Scam – Pinoy Style

Multi-Level Marketing (MLM) is a legitimate business strategy. However, many scammers have been disguising their pyramid scams as MLM companies . How can a potential investor distinguish between a legitimate networking company and an illegal Ponzi scheme? 

Gotcha! If the word “investment” is used by the company, and you are called an “investor”, those are initial clues that it might be a Ponzi scheme. What are the other things you need to watch out for?

The Direct Selling Association of the Philippines (go see their website here) has come up with an eight-point test in distinguishing between a legitimate MLM company and an illegal pyramid scheme (most likely disguised as an MLM). ALL eight questions must have “YES” answers for a company to be evaluated as legitimate.

Here are the eight questions:

Continue reading Distinguish Between Legitimate Multi-Level Marketing and A Pyramid Scam – Pinoy Style

SEC Issues Advisories on MLM Companies Success200 and FLAG Prosperity

 

Success200 and F.L.A.G. Prosperity Marketing are the latest Multi-Level Marketing (MLM) companies that the Securities and Exchange Commission (SEC) Philippines issued advisories on.

 

success200 logo
Success200 logo. Image from Success200 company facebook page

 

FLAG prosperity logo
Freedom Life Alliance Global Marketing F.L.A.G. Prosperity Marketing Logo. Image from freedomlifealliance.com

 

Here are the advisories on Success200 and F.L.A.G Prosperity:

Continue reading SEC Issues Advisories on MLM Companies Success200 and FLAG Prosperity

Free Stuff: Philippine Stock Exchange’s (PSE) Stock Market 101 Webinar

Want to learn how to invest in the stock market? This may be your best chance to learn it for free. You’ll also learn from “The Source” – the Philippine Stock Exchange (PSE) itself without going there personally (parking there during office hours sucks big time).

 

PSE Stock Market 101 Webinar
Is it just me or does the poster have too many icons? If you want to join the PSE Stock Market 101 Webinar, register at www.pseacademy.com.ph.

 

Do I think this webinar is worth joining?

Continue reading Free Stuff: Philippine Stock Exchange’s (PSE) Stock Market 101 Webinar

The Common Investor Asks – Despite Very Good Financial Results, Why Did The Stock Price of Apple Inc. Plunge?

On July 21 2015, Apple Inc. reported very good financial results for the recent fiscal quarter. The company’s financial performance actually beat analysts’ estimates. Apple Inc. earned USD 1.85 per share (1.81 analysts’ consensus estimate), and had revenues of USD 49.6 Billion (up 33% from last year and better than the 49.4 Billion analysts’ consensus estimate). Following the announcement, the stock price plunged by around 7%. The common investor asks – how did this happen?

Apple Inc. logo
Apple Inc. reports better than expected earnings but stock price tumbles… The common investor asks – market, why did you react that way? Image from Apple Inc.

 

Wall street types may know what’s going on, but the common investor may be scratching his head. I had a conversation with one such investor and tried to explain things the best I can in the simplest way possible.

Continue reading The Common Investor Asks – Despite Very Good Financial Results, Why Did The Stock Price of Apple Inc. Plunge?

What’s Your Say on This? – Is Superbrands Philippines Credible?

One of the hospitals I work for proudly displayed the Superbrands seal in its posters when it was awarded one years ago so I assumed then that this award was totally legit and prestigious.

Fast forward to 2015 and here are the awardees:

 

Superbrands 1st certificate awardees 2015
As a Filipino consumer – do I think these brands represent the cream of the crop of Philippine brands? Short answer – NO. Long answer – Not even close. Image from One Lightning Corporation Products Facebook page

 

One of the brands awarded above was the subject of three advisories (cease and desist orders for alleged investment related “modus operandi”) from the Securities and Exchange Commission (SEC) Philippines.

The three advisories were issued against that brand in February, March and April 2015. Superbrands handed out its awards May 2015 (see image above). Wow! How did that happen?

Continue reading What’s Your Say on This? – Is Superbrands Philippines Credible?

What Were Superheroes Doing in an Investment Conference?

Last May 16, the Chartered Financial Analyst (CFA) Society of the Philippines hosted the Philippine Retail Investment Conference at the SMX Taguig Convention Center. Notice that Superman is in the background in this picture. What were superheroes (there were more of them) doing there? Did this imply that an investor has to have superpowers now to make money in the market? Did this insinuate that the finance industry now operates in an alternate reality?

Philippine Retail Investment Conference 2015 with Superman
What was Superman – his statue, at least – doing in an investment conference?

Continue reading What Were Superheroes Doing in an Investment Conference?

Will You Buy Property that Sits on a T – Junction?

I have been trying to buy some real estate. I have been offered a piece of lot at a very nice gated community, developed and managed by a very reputable community, and near good schools, business, shopping and recreation establishments. The lot is also much cheaper (on a per square meter basis) compared to other lots in the village. The title and other documents are all clean and in order.

The lot is almost perfect… except for one flaw. The lot faces a road. It sits on a t-junction/ t-intersection. If you were in my place, would you invest in this lot?

T intersection lot at Block 14 Lot 44
The property on Block 14 Lot 44, would you buy it? The number below is the area of the lot which is 346 square meters or 3724 square feet. Image from AlveoLand

Continue reading Will You Buy Property that Sits on a T – Junction?