My FIRST ever review for First Philippine Holdings. There are only a few criteria for us to find the right company and one of them having been unpopular is one. But FPH is not unpopular. They are a Lopez company and is included in the Philippine index. They own the largest power producing and power distribution company in the Philippines, Meralco. But was later sold to MVP's company Beacon and Metro Pacific Investments.
FPH has been out of favor because of the sellout of Meralco. But the company have a return on invested capital of 56.38%. That means they have great management and great business. Being the Lopezes. The only bad thing that made traders shy away from this company is its sellout of Meralco. "Predicting" that they may reduce the earnings because of that. But great management and people behind the business will always produce great returns. The price of the stock is selling at P60.05 and is now underpriced by 56.28%. This is a great discount in my opinion.
Disclaimer: I am long FPH.
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