Philippines Long Distance Phone Company a Rapidly -Growing Wireless

PHI (PHI) is the ADR for the Philippines Long Distance Phone Company, the "Ma Bell" of the Philippines. It has a solid fixed line business and faster growing wireless and internet businesses. Due to the fact that the ordinary is not a US-dollar based asset, holders of PHI benefit when the US dollar is weak.

Fundamentally, the economic concerns of the US are of minimal impact on PHI. A massive global recession could likely hurt multiples in Asia, but the Philippines is clearly one of the more stable countries in that region and I would argue that PHI is one of the most stable investments in that country.

The $64 level has been a good buying level in the recent past and I am stepping in again. Given my opinion that we are now in a bear market, I am likely to trim this position when the stock recovers to the mid-$70s. And don't forget the 5% dividend while I wait...

Total return expected is at least 20%.

Disclosure: I own shares of PHI.

Comments

[whidbey:]

This is interesting, the telcom land lines in the PI are terrible so the mobiles and cells are hot candidates. The problem is the extreme corruption of goverment and business. The visibility of business exists (to some degree) at registration, but then is undermined steadly until the business topples. I say be careful they have not been serious in the past.

2008 Mar 30 10:12 PM