Investing in Philippines: Listed Company Profile: Meralco

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Monday, January 17, 2011

Listed Company Profile: Meralco


We have been waiting for this giant to rise up and be one of the leading stocks in the PSE.

About 2 months ago I was checking this stock and I knew there is something with this company. Being one of MPI's gem in their list of stocks and as well as the recent move by SMC the price of MER suddenly rose rapidly at year end it posted a 237.00 and nearly surpass its all time high of 292.00 in the first weeks of 2011 when it posted a 287.00 per share market price.

Originally a Lopez company, the entry of Manny Pangilinan's First Pacific Holdings through Metro Pacific Investments have given boost to MER's planned entry to the power generation sector a move from power retailer to power producer. And the latest is the entry of Ramon Ang of SMC .

Looking at its price it seems to hit another high after the uneasy start of 2011. 


I have seen a rise in its price back in Nov 2010 thus bought some until it went down due to year end jitters. After cost averaging till the end of 2010 I was looking at a 225 target price with a 15% gain but it went far beyond my expectation. Right now it sits at 280.00.


In fundamental aspects Meralco is in good shape having a good current ratio at 1.10 and a PE% of 35 (MRQ source www.reuters.com). Outlook on 2011 is positive and if MER's plans to get into self-generation of electricity it might have a better market price as what was seen with SCC.


1 comment:

pounds88 said...

would you recommend this for long term? i'm planning to buy some share this month for my daughter.(trade at my own risk)

Chitika