One of the most loved stocks in the PSE does it again and continues its path to expand its footprint outside the Philippines. For those who are new to the market and don’t know Smashburger JFC bought 40% of the US based burger joint for 100 Million US Dollars last 2015. They pushed the envelope again this year by paving the way to buy more shares in the next few years.
Catch me in my live training events! (quick plug)
The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world!
Stock Smarts Manila — March 25 – April 1, 2017
Stock Smarts Japan — March 18 – March 20, 2017
Stock Smarts Davao — April 29 – April 30, 2017
Stock Smarts Singapore — May 20 – May 21, 2017
#ICON2017 — May 27, 2017
Stock Smarts Australia — June 17 – June 18, 2017
Stock Smarts Iloilo — July 29 – July 30, 2017
As JFC currently owns 40% of Smashburger it could own the entire company by 2021. This gives JFC a larger exposure to foreign markets as it tries to hit its ambitious goal to receive 50% of its income from foreign markets by 2020. Either way this is such an amazing story of a local company trying to make strides globally.
On a fundamental aspect, the stock still is poised to grow and expand its earnings for years to come. The company currently has an ROE of 17.03, a growing EPS that has been quite steady through the years. To balance everything out the stock still remains relatively expensive at almost 40x P/E. For investors in spite of the good news it might be more prudent to come in once the stock becomes a bit more cheaper.
To those who are not yet invested in the stock market, instead of just spending your cash in Jollibee, why not be a shareholder of the company? Learn the ropes first by buying companies with a solid track record and have an amazing brand (like Jollibee) that can stand the test of time. I really dream of a day that we will have 10 Million Filipinos investing in the stock market.