5 Investment Ideas You Probably Haven't Tried Yet

"He who can be entrusted with little can also be entrusted with bigger things."

Pilifinance hits 2 birds with one stone (+ 3 bonus ideas!)

In this article, Pilifinance tackles 2 main investments you can actually buy, and 3 other investment ideas to help you think out of the box.

#hanapbuhay

[Disclaimer: Pilifinance does not endorse any of these investments, does not guarantee safety of your investment. This article is written mainly to inform and give new ideas on new ways to invest.]

1) Metrobank long-term tax-exempt deposits at 3.5% per year.

LTNCDs or Long-term Negotiable Certificates of Deposits are negotiable certificates of time deposit or long term bank deposits.

This offering has a duration of 7 years, with a yearly interest rate of 3.5%.

Minimum amount of investment is P50,000 and in tranches of P50,000 therearfter.

These are tax-exempt to the general public if held for until maturity or more than 5 years.

This time deposit is insured by the Philippine Deposit Insurance Corporation up to P500,000 per person. LTNCDs cannot be redeemed before maturity, but may be sold in the secondary market.

Deadline: This offering is available to the public until September 12, 2016.

Pilifinance Quick Computations:

After 7 years, you will be given back your principal that can earn up to 24.5% interest. 

That means, your P50,000 will earn P12,250 in 7 years or P1,750 per year.

Pilifinance Insights:

Metrobank is taking advantage of the current low interest rate environment to increase liquidity, while locking in the low-interest rates.

Hence, this low interest rate applies to you the money lender. Lower interest rates mean lower income.

The interest rate environment in the Philippines fluctuates from around 2% to 12%, but take note that no matter how high inflation and interest rates go, interest in LTNCDs usually are locked to the rate at offering. Pilifinance thinks the main risk of this investment, is inflation rate risk.

However, this opportunity may be appropriate for retirees or more conservative folks sitting on a huge pile of cash, as a way to diversify their retirement portfolio.

 

For more information, visit your local Metrobank branch. Reminder, this opportunity is up until September 12 only.

Source: http://business.inquirer.net/214241/metrobank-offers-long-term-deposits-at-3-5-pa

2) Petron Corporate Bonds

Another option, corporate bonds offered by Petron. These are loans to the public backed by the issuing company. 

Offering date is on October 10-14, 2016.

There are two maturities/tenors:

-Series A: 5 Years, tentatively 3.5% to 4.25% per year

-Series B: 7 Years, tentatively 4.125% to 4.625% per year

(These rates are before taxes.)

Minimum investment: P50,000

Multiples of P10,000 for additional investments thereafter.

To buy, visit your nearest branch of any of the underwriting banks: 

Security Bank, BDO and BPI.

Banks may also accept reservations in advance of the offering date.

Pilifinance Insights:

When buying bonds or stock or securities of a company, it pays to study the company's latest balance sheet and financial statements. The Philippine Rating Services Corporation rates Petron as a AAA company, meaning these should be among the safest bonds offered by Philippine Rating Services Corporation. However, these are not bank deposits and are not guaranteed by the PDIC. These bonds may default and you may lose your investment in the event the company goes bankrupt. Aside from default risk, there is also the inflation risk as tackled above.

3) PhilCrowd.com: Franchise Crowd-funding Cooperative

Ever wanted to profit from franchises like Potato Corner or 7-11 but don't have the cash to fund the entire operation from scratch? PhilCrowd Cooperative offers a solution.

From P25,000, you can now participate in owning your very own 7-11 store or other available franchises.

Plus one-time membership fee P2,500.

For more information: visit http://www.philcrowd.com

Pilifinance Insights:

Whenever you part with your money, especially in non-conventional institutions like big banks and the well regulated financial markets,

It is impertative to practice DUE DILIGENCE/Do your research.

Before you part with your money, study all the details of the investment proposition:

How exactly are you going to get back your money? 

How difficult is it to encash or liquidate your investment?

Can you encash your investment at any time or is there a holding period?

Are there penalties and additonal fees for early redemption?

What is the projected ROI or return on investment?

How long will it take before you can earn it?

Study the financial statements of the corporation or cooperative. 

Gather reviews and feedback from other members or investors.

Check the legitimacy of the company or cooperative.

Foresee all possible risks and problems like financial problems in the cooperative, people running away with your investment, possible scams. 

Start small. Invest only what you are willing to lose.

Pilifinance has very limited knowledge of PhilCrowd Cooperative we leave it to you to do your due diligence. This is not a transaction with a big company, bank or stock market so the risk of losing your investment is much higher.

Since this is a cooperative set-up, it is possible also that you might not have control of the day to day operations of the franchise, the site selection and other factors. 

4)  "Lending Club" Corporation

Lending Club introduces peer-to-peer lending, brokering or pairing borrowers and investors through America's largest online lending marketplace. 

Although initially, it might remind you of junk bonds or loans that default, Lending Club boasts of a facility that not only screens borrowers, but also spreads your investment into fractions of loans (spread to about 100 different loans) to diversify your portfolio and protect you from default. Currently it is available to USA residents only.

I have heard that Millionaire Acts author Mr. Tyrone Charles Solee maybe organizing a local chapter who invests in this, you may contact him.

5) Citihub Social Impact Rental Business

As featured in ANC Market Edge with Cathy Yang, co-founder Nikki Yu presents this temporary housing concept for low-income commuters in Manila who need a roof to sleep under over the work week.

Citihub uses container crates re-engineered into dormitory-like shelters. The idea is similar to the capsule accomodations in Japan. The rent is currently pegged at P57 a night.

Kapandesal Multipurpose Cooperative is the proprietor of the business. You must apply for membership in order to invest, but 

For a minimum investment of P50,000 you will be able to participate in this REIT (Real estate investment trust) -like arrangement.

Source: http://news.abs-cbn.com/business/08/15/16/have-p50k-to-invest-citihub-offers-20-25-pct-annual-rent-income

For more information visit: http://www.citihub.com.ph

Pilifinance Stock Portfolio Policy for mid-2016 Levels

Disclaimer: The following is unsolicited investment advice and must not be construed as a recommendation to buy or sell securities. Investors must seek professional legal counsel and invest at their own risk.

>> The Philippine stock market had hit the highest level of 8,000 in 2015 during President Benigno Aquino administration's turn-around economy with an unprecedented surge since the 2nd World War, before dipping to around 6,000 and going back above 7,000.

A new presidency enters the picture with Davao Mayor Rodrigo Duterte, bringing with him more risks than the average new comer, with proposed drastic changes to the Government structure and constitution.

>> Stated bluntly, Pilifinance thinks that current levels are unsafe for additions to your equity portfolio for the following reasons:

1) Many of the popular blue-chip issues trading at many times their earnings;

2) The country is faced with many uncertainties of the incoming presidency;

3) The unprecedented surge of the PSEi may have been overdone. With a P/E ratio of 21 venturing beyond Yale Finance Professor Robert Shiller's unsafe level of 20.

4) Foreign direct investment has continued to lag in the country, with the growth driven mainly by Aquino's infrastructure spending (which are still currently being built), the BPO industry, OFW remittances and internal consumption.

PiliFinance's investment portfolio consists mainly of Real Estate development companies and Infrastructure companies. 

>> Even if some of the less-popular issues have declined in price, the current market levels might outweigh the benefits.

>> The market has shown eratic movements in 2015-2016, and Benjamin Graham tells us that if unsure, we must "follow the side of caution".

Hence we must adopt his conservative policy:

1) No buying of stock on margin/borrowed money.

2) No additions to investments on common stock.

3) Reduction in equity holdings "where needed" to a maximum of half of the portfolio and reinvested into bonds and savings accounts.

Investors with a dollar-cost-averging plan may decide to continue or stop his periodic payments.

>> However, since interest rates have remained fairly unchanged, and savings accounts rates remain around 1% per year, still less than most dividend yields, and that stock brokerages do not earn interest, it might be wise to hold on to your holdings (that have been selected as undervalued) for their dividends.

[PSEi chart taken from the Bloomberg App]

Chapter 3: A Century of Stock-Market History - Golden Nuggets from The Intelligent Investor by Ben Graham

Here we go, the second installment of our Golden Nuggets from the Intelligent Investor! Pilifinance presents Chapter 3: A Century of Stock-Market History: The Level of Stock Prices in 1972

Chapter 3: A Century of Stock-Market History: The Level of Stock Prices in 1972

Graham used indexes, the S&P 500 its with wide breadth of companies, and the largest companies in the Dow Jones Industrial Average, to analyze the over-all performance of the market. As well as indicators with the broadest reach; earliest available records going back in time.

Graham condensed the data into annual rates of advance or average compounded rate of advance (may or may not include dividends); averages of entire periods following a characteristic trend. 

He mentioned the "Rule of Opposites" when the market was low, that the time was ripe for another bull market, and was skeptical of advances that "it may have been overdone".

Graham also condensed the data into decades figures; including over-all earnings of corporations on invested capital. He kept a weary eye on the trend of "net losses" posted by companies, the number of those being "financially troubled" as indications of the end of a boom era.

Thus Graham also watched the P/E ratio of indexes, as well as the dividend yield on the indexes. He also had his eye on interest rates of high grade bonds. 

Prices, earnings and dividends were key indicators in the market, and interest rates of high grade bonds.

Graham, like everyone else, had difficulty gauging the market, outside of his value judgements. Even if the market was historically high in relation to values, and Graham recommended a conservative stance,  it was merely a beginning of another great advance and "it was not a particularly brilliant counsel." And it continued to advance even more. And even in a bearish stance, the market advances again. Graham was sure of one thing, that it will collapse and such "heedlessness" will not go unpunished.

He urged that if unsure, the investor must follow the side of caution:

1) No buying of stock on margin/borrowed money.

2) No additions to investments on common stock.

3) Reduction in equity holdings "where needed" to a maximum of half of the portfolio and reinvested into bonds and savings accounts.

Investors with a dollar-cost-averging plan may decide to continue or stop his periodic payments.

Graham urges investors to follow a "consistent and controlled common-stock policy" rather than guessing the over-all direction of the market, beating the market or picking winners.

It is also wise to keep an eye on the attractiveness of other alternatives to common stock investment such as bond interest rates, illustrating this with his bond-yield/stock-yield ratio.

Commentary by Jason Zweig

Long-term record of stocks cannot guarantee it's future movement. The one who believes so is an ignoramus.

"The value of an investment is, and must always be, a function of it's purchase price."

The rule of opposites is that the more enthusiastic investors are in the long run, the more probable it is that they will be proved wrong in the short run.

A valuation approach of Yale Finance Professor Robert Shiller, inspired by Graham, is that stock markets tend to do better below a P/E ratio of 10, and tend to do poorly shortly after going higher than a P/E of 20.

Golden Nuggets from The Intelligent Investor by Ben Graham: Chapter 2:The Investor and Inflation

In this series of blog posts, Pilifinance brings you select, practical and concise nuggets of wisdom from Warren Buffet's idol, Ben Graham himself, author of The Intelligent Investor.

We will skip the more basic chapters (such as Chapter 1: Investment versus Speculation) assuming the reader has sufficient background on Ben Graham's work, in order to focus on the more specific and practical advice from the book. 

So here we go, the first of a series of posts as Pilifinance reads The Intelligent Investor.

Chapter 2: The Investor and Inflation

> Stocks should carry more protection against inflation than bonds, but it is not guaranteed.

[Depending on future stock performance (price and dividend) and bond interest income versus inflation.]

> There is no close connection between inflation and stocks (prices and earnings).

In the past, good business was accompanied by inflation, and poor business by deflation, but the effect of inflation on earnings is limited. Correlating the inflation and stock prices will only confuse the investor.

> Do not put your eggs in one basket because of the uncertainty of the future. The conservative investor should minimize his risks but must insure himself from large scale inflation. He can do this by having stocks in his portfolio which is the lesser of two evils, the greater evil being an all bond portfolio.

> Alternatives to common stock as hedge for inflation:

A) Gold - has no cashflow, incurs expenses for storage; earning interest on a savings bank is much better.

B) Things - paintings, stamps, coins have an artificial, unreal, precarious element on the quoted prices; hard to think of as an "investment operation."

C) Real Estate - better amount of protection against inflation but also subject to fluctuations, and errors in the purchase.

Other topics brushed upon:

Return (earnings) on equity is around 10%.

Return (earnings) on market price is usually lower, expressed in the reverse as "times earnings" or P/E ratio.

As a return on stocks, investor may assume dividend return (%) plus increase in book value (%).

Commentary by Jason Zweig

From 1926 to 2002, stocks have outpaced inflation 78% of the time. But it also means stocks failed about 1/5 of the time.

Alternatives to stocks as hedges from inflation include REITs (Real Estate Investment Trusts) as well as TIPS (Treasury Inflation Protected Securities).

The Graham Number

Being a huge fan of the father of value investing, Benjamin Graham, I am quickly delighted to learn a new valuation method to determine the fair value. I was browsing one of the investment groups on Facebook when someone posted their valuation. Every time someone posts their valuations, I get curious and I would like to know how they make their computations. 

Now having finished the book Security Analysis, Graham's first book of 900 pages, I am already quite at ease with the basic computations that Graham makes, such as Price to Earnings ratio, Book Value, Earnings per Share and Margin of Safety.

Going back to the post I saw, I quickly recognized these variables and simple calculations that I use so much and hold so dearly. I immediately understood how they are computed, except for the target price or fair value im his computation. It wasn't in Ben Graham's first book so it must be a newer concept that he'd made. I asked the guy who posted, who, in his profile was a stock broker for one of the online stock brokerages, told me that it was the Graham number. I did not recognize it right away, but I looked it up. 

The formula was simple enough and it consolidated all of my favorite variables in one simple formula!

I was excited to try and understand it.

Here it is:

(Image taken from Wikipedia)

For a more detailed description visit here: 

https://en.m.wikipedia.org/wiki/Graham_number

True enough, the formula was found in Graham's later book, "The Intelligent Investor".

Let's make a sample computation using my favorite stock CDC, Cityland Development Corporation, the builder of condominiums around the Metro Manila area.

In my case, (these numbers are highly preferential), I buy if the stock is below a P/E ratio of 10, which means it must return at least 10% per year, and if the stock is selling below its book value (net asset value). Thus, the multiplier for my Graham Number will be 10x1=10, replacing Graham's 22.5.

Thus my formula has become even more conservative. 

The formula should look like this:

     __________________________________________________

   /

\/     10   X   (earnings per share)   X   (book value per share)

Now let's try it with my favorite stock. First with Graham's original multiplier of 22.5

Looking at the financial results for 2015, Cityland Development Corporation (taken from PSE.edge website)

Book Value per Share: 1.47

Earnings per Share: 0.21

With Graham's original multiplier, I got a fair value of: P 2.64 as the maximum price I can pay for the stock.

With my more conservative multiplier, I got a fair value of: P 1.76

With CDC shares selling at around P 1.00 that would constitute a very very good buy. ;)

San Miguel Corporation Valuation Updates

[Latest 5 year chart of SMC, courtesy of Bloomberg Markets App]

San Miguel Corporation is a Philippine conglomerate with interests in Food and Beverage, Packaging, Real Estate, Energy, Fuel and Oil, Telecommunications, Banking, Infrastructure and others.

I am most excited in SMC's infrastructure holdings. The Philippines, in particular, Metro Manila, is currently experiencing a logistical crisis, ranked as having the 5th worst traffic jams in the world. The Japan International Cooperation Agency estimated that Metro Manila's traffic jams cost $57 million dollars a day.

Currently, several huge highway projects are under construction. One being the NAIA Expressway that will connect the Ninoy Aquino International Airport terminals 1-3 to the existing South Luzon Expressway, the metropolis' main southern artery and the City of Dreams Manila, a huge parcel of reclaimed land west of the metropolis currently being developed as a regional casino hub. Included in the project are various flyovers that will ease traffic on critical intersections that have been traffic bottlenecks for a very long time.

And to me, one of the game changer infrastructure projects, the Metro Manila Skyway. This project, will unite, for the first time, the North (NLEX) and South (SLEX) main expressways of the metropolis, greatly easing traffic flow.

SMC controls the South Luzon Expressway (SLEX), the only expressway south of the metropolis, and one of the longer highways in the country. It has recently been extended by the STAR Tollway also operated by SMC.

On March 5, 2015, SMC increased its share of profits from the SLEX. The following were taken from SMC's 2014 Annual Report:

"As of December 31, 2014, SMHC had a 46.53% stake in Atlantic Aurum Investments
B.V. (AAIBV), a company which has the following shareholdings: (i) 80% stake in South Luzon
Tollway Corporation, which holds a 30-year concession rights to operate the 36 kilometer SLEX,
one of the three major expressways that link Metro Manila to key southern provinces and (ii)
87.84% beneficial ownership in CMMTC.."

"With the purchase of additional 44% equity interest and the exercise of option for the
4.47% equity interest, SMHC has a 95% ownership interest in AAIBV as of March 5, 2015. As
such, AAIBV became a subsidiary and is controlled by SMHC effective March 5, 2015."

See also this article:
http://www.interaksyon.com/business/107767/san-miguel-consolidates-toll-ways-business



Review of Some Financial Ratios, based on 2014 Annual Report

Outstanding Shares of SMC Stock (taken from the 2014 Annual Report)
Common: 2,378,145,134 (69.03%)
Preferred Series 2-A: 721,012,400
Preferred Series 2-B: 90,428,200
Preferred Series 2-C: 255,559,400
Total: 3,445,145,134


2014 P/E Ratio: 13

2014 Book Value Per Share: P101.11 source: COLFinancial

2014 equity less non-controlling interests: P240,462,000,000
Preferred Series 2 issued 2012: P79,238,000,000 (source p.76, 2014 annual report)
Preferred Series 2 issued July 2015: P33,500,250,000 (source, http://www.philstar.com/business/2015/07/17/1477710/smc-taps-9-banks-handle-p33.5-b-preferred-share-sale)

2014 equity less controlling interests and preferred shares: P127,723,750,000
divided by outstanding common shares (2,378,145,134)

**Pilifinance Estimated 2014 SMC Common Shares book value per share: P53.71


Latest Dividend Rate: "Cash dividends declared by the Board of Directors of the Parent Company amounted to P1.40 per share both in 2014 and 2013."

At latest price of P46.95 on September 14, 2015, Dividend Rate is at 2.98%

Debt to Equity Ratio: 2.12

Total Liabilities (Current + Noncurrent)
Equity + Non-controlling Interests

Meaning, SMC's total assets are 2.12 times financed by leverage than by equity, but its total assets still exceed leverage/loans..

Income Opportunity: Pilifinance Reviews FarmOn

[Pilifinance Update on September 7, 2016:

Upon further investigation of the matter, Pilifinance found out that the owners of FarmOn have heeded the advisory of the SEC and sought to collaborate with the agency and get incorporated. That is a good sign and it shows their sincerity to get in order the legal structure of their business, and make sure that operations are legitimate. On July 18, 2016, two months after the advisory, FarmOn is officially incorporated as FarmOn Agri-Community Corporation. That is a good step forward, and it is especially reassuring that no complaints have been made (thay we know of) since it's inception.

Our stance remains the same: exercise caution in any investment dealing. Do yojr own due diligence, risk tolerance and never invest more than you are willing to lose.]

Below is a copy of their new Certificate of Incorporation:

[Pilifinance Update on September 6, 2016:

It has just come to our attention that the Securities and Exchange Commission (SEC) has issued an advisory dated May 17, 2016 regarding the legal status of FarmOn, confirming our suspicion and warning (as stated in this article's disclosure statement included when this article was originally written), that FarmOn is not a registered entity with the SEC. As such, FarmOn is not legally authorized to sell investments or securities to the public. The advisory also states that FarmOn does not even have a primary license which is to enable it to get authority to solicit investments. Meaning, it is not a registered corporation or as a partnership with the SEC. (See September 7 update, above)

To be fair, Pilifinance's experience in its continued transactions with FarmOn up to this day of writing, has been more than satisfactory. FarmOn has continually shown commitment in fulfilling its investment contracts as well as accountability and reliability in our transactions. We also have not heard of any customer or investor complaints with regards to FarmOn as of this date.

However, we continue to emphasize what we have originally stated in our perceived risks and disclosure, and the advice of the SEC in its advisory dated May 17, 2016:

That is to "exercise self-restraint from investing their money into such high-yield, high-risk investment scheme and to take the necessary precaution in dealing with individuals representing the above named entity."

This SEC advisory raises a red flag, and might affect the decisions of current and prospective investors, in turn affecting profitability of FarmOn. There is a risk that investors might pull-out their investments in fear of seeing this advisory, that could end up in the folding of the company. 

In light of this, Pilifinance believes that it is wise to safeguard the investor's gains and capital, as with any investment operation. If despite these warnings, the investor wishes to proceed, he does so at his own risk, and our opinion in such cases, that such an investor will do well never to gamble more than he is willing to lose.]

Below is a copy of the advisory released by the SEC on May 17, 2016:

[You may skip to the HOW TO BEGIN section at the bottom of this article]

[images taken from FarmOn Facebook page]

Always wanted to invest in a FARM?

With record low interest rates for bank Savings Accounts (less than 1% per year) and world financial markets In turmoil, how do you make your money GROW? Affordably?

In this OPPORTUNITY You don't even have to get your hands dirty!! Your farmers will do it for you!! 

Support Filipino farmers and help the local farming industry..

How do you earn?

Fund the seeds.....Split the profit with the farmer!!! That EASY!!

For as little as P100 FLAT (for one chicken) you can now invest your money and earn profits!!

As featured in the Philippine Daily Inquirer, Balitanghali and State of the Nation with Jessica Soho.

How to do it?

Anytime, Anywhere! Simply deposit your investment to their BDO bank account in any BDO Branch nationwide and email them the receipt and contract!!

[DISCLAIMER: This is not a buy/sell recommendation. The Author and Pilifinance Blog is not liable for any damages of any nature upon use of the information obtained herein.The investor assumes all risk and liability to their investment. Study carefully, weigh the risks and invest only what you can afford to lose.]

========Personal Experience of Pilifinance with FarmOn==========

In 2014, with record low interest rates on savings accounts, and uncertainty in the stock markets, I was looking for a new way to invest money.

Fortunately, I stumbled upon this OPPORTUNITY while browsing investment groups in a social networking site.

I was immediately interested, because UNLIKE other "income opportunities" and scams found all over the internet, this opportunity presented a sound and reasonable business model.

In any investment, I ask myself, "HOW this business will make the money to RETURN my investment."

And their business was so simple and easy to understand that I can explain it in a few words.

Local farmers are in NEED of money or capital to buy their starting SEEDS.

WE PROVIDE them the start up money or investment to buy the seeds or animals.

The farmers care and HARVEST for the plants and animals.

Once the FARM PRODUCTS/fruits of harvest are SOLD in a ready market,

you and the farmer can SPLIT your profits!

I was EXCITED to share this to my friends and family, but we had our DOUBTS and reservations.

What if it was a scam? What if they run away with my money?

Of course, there's only one way to know for sure, that is to TRY IT!

Invest only what you're willing to lose.

On September 2014, I invested in 2 chicken heads for a measly P225, just because I was trying it out, and that was what I was willing to lose.

3 months later, on December 2014 my P225 had become P311!!! I was very happy not because of the amount, but the rate of return on investment!

In 3 months I had gained a profit of P86 or 38%!!!!

But I really had to invest 1 month in advance, and they deposited it in my bank account upon encashment 1 month later, so the entire duration my money was invested was around 5 months.

Still that was a return on investment of 7.6% PER MONTH compared to the measly 1% per year of a bank savings account!

And so in January 2015, I invested a bigger amount of P30,000 in Lettuce and Sitao crops, 8 months later, I had earned P9,000 profit on that alone! That's a whopping 30% in 8 months!

That's equivalent to a yield from a very good year in the stock market. A year, with enormous amount of risk.

Once you begin to browsing their catalogue of farm produce you can invest in, you have to split the indicated amount by two, because you will be sharing your profit with the farmer with a ratio of roughly 50/50.

In general, the return on your investment will be your original investment + around 5-8% PER MONTH, but will vary depending on what you choose.

A single investment in FARMON lasting a couple of MONTHS will usually yield you upwards 30% (based on my previous investments with them).

This is a reasonable rate of return, unlike what investment scams promise of doubling your money in a few months.

***IMPORTANT: RISKS PERCIEVED: Of course this review will not be complete without the RISKS.

1) We do not know the proprietors of FarmOn personally, but by reading their website, we can see that one of the reasons they put up FarmOn is to help poor farmers to obtain financing for their start up seeds, crops and livestock, which is a noble, and actually a mutually beneficial solution to the need of the farmers and investors. They have also been featured in Philippine Daily Inquirer, Jessica Soho, and Balitanghali but I am not sure if they are registered with the SEC (risk #5).

2) FarmOn is just a single business. There is always a risk that the business will fail, and your investment may not be returned. Faults in operations and management and even large scale natural calamities (see risk #4) can cause the enterprise to fail.

3) Being scammed or your money taken away. In my personal experience, FarmOn responds to every query and concern I had. The customer service was okay, and they deposited my investments back into my bank account without any problem. But past results may not guarantee future results. In the past, the author has heard of similar profit sharing schemes with farms where the investors have been duped and their investments gone.

4) Natural calamities, droughts and famine. Good news is that FarmOn guarantees to replace your investment of crops and livestock in case of natural calamity, a sort of insurance, for free.

However, in case of widespread natural calamity that destroys most of the farm's inventory, FarmOn may not have enough money to replace all produce and investments, and may even cause the business to fail, hence losing your investment entirely. 

5) I am not sure what kind of business permit they have. I am also not sure if they are licensed by the Securities and Exchange Commission or SEC to sell securities or investments to the public. I tried searching the keywords "FarmOn" and "Sproads" on the SEC website but did not see them.

In my case, I tried it first with a small amount, and limited my investment to a certain percantage of my investible funds. My rule is: Always invest only what you are willing to lose.

HOW TO BEGIN??

1) Read the disclaimer and investment risks sections above this portion.

[DISCLAIMER: This is not a buy/sell recommendation. The Author and Pilifinance Blog is not liable for any damages of any nature upon use of the information obtained herein.The investor assumes all risk and liability to their investment. Study carefully, weigh the risks and invest only what you can afford to lose.]

2) Read the website completely and look at what current farming cycle is open for registration. The important information here is the deadline for registration and the start of farming date.

3) Select the crops or livestock you want to invest in, and calculate the return on investment.

4) Click JOIN NOW and 

on the "Referred by:" field, kindly put 

inogomez@ymail.com

to say thanks to Pilifinance!

FarmOn website: [www.farmon.ph]

5) You may opt to not pay the notarized contract if you think this will not impact the outcome of your investment.

6) Wait for their email confirmation for a few days. 

7) Print and sign contract and invoice.

8) Deposit money investment to the FarmOn / Sproads account in any BDO Bank Branch nationwide according to instructions received in email. Keep your BANK DEPOSIT SLIP.

9) Screenshot or scan the forms and bank deposit slip and attach the image to the email and send to FarmOn. You may include an optional note regarding the details of your investment on the email.

10) Keep the signed contract, invoice and deposit slip for future reference.

11) Monitor your investment and know your harvest date. Wait for emails regarding your FarmOn investment, log in to your account in the FarmOn website and check out the FarmOn Facebook app.

12) Once the profit and investment appears on your account, fill up the online profit encashment form, and put your bank account details (Name, bank name, account opening bank branch, and bank account number, and amount to be deposited.) And wait for your investment to be deposited to your account!

Process may be subject to change without notice. For further inquiries, please contact FarmOn.

Please feel free to share, save and comment!! Let me know what you think!