What Are The Blue-Chip Firms In The Philippines That Are Good To Invests In?

What is a blue-chip firm or stock?

Wikipedia says that according to NYSE a blue-chip stock is stock in a company with a national reputation for quality, reliability and the ability to operate profitably in good times and bad.

The characteristic of blue-chip companies according to UBS Financial Services, Inc. are:

· rated Buy by the Sponsor;
· market capitalization in excess of $5 billion;
· financial strength, a record of profit growth and reputation for skilled management;
· established, well-known company considered to be stable and mature with a reputation for
providing high quality goods and services; and
· a leader in its market niche.
· In addition, companies are analyzed for their record of earnings over a relatively long
period of time and future potential. Dividend payments, while not required, are considered.

A stock can be considered as blue-chip if it has four of the characteristics above.

There are lots of blue-chip firms in the Philippines. These companies generated bigger growth from its capital. A publication from CLSA, titled “The Moat Report” identified some Philippine firms included in their latest elite list of 246 “durable” Asian companies. CLSA is a leading brokerage and investment group in Asia-Pacific based in Hong Kong.

These companies are: (1) Philippine Long Distance Telephone Co.; (2) SM Investment Corp.; (3) International Container Terminal Services, Inc. and (4) Jollibee Foods. These four companies have sustainable operations that lead to better returns in investment capital.

Forbes magazine identified that the two biggest stockholders of these blue chip firms was included in the latest roster if world’s billionaires. They were Henry Sy of SMIC and Enrique Razon of ICTSI.

It is advisable to put some of your investment capital through these establishments as their status imply. The assurance that these companies hold to their capitalists promises a vital sign of growth potential in the coming years to come especially if an investor is doing a long term
investment.