REQUIZA, Trisha Kyla A.

BSA 2-1

Assignment: (Lecture 5)

Considering the inevitable economic recession threatening our economy, if you

were to be given a chance to invest in a BLUE CHIP company where would you
invest and why?

Since there will be a lot of factors that will affect most of the company, I believe it’s
better to invest to a company that is necessary to one’s life and also to other company
which is electricity. Due to the continuous demand and growth for the power, there will
be reduction to the volatility that can make the company achieve more. With this, I
would probably invest to Aboitiz Power Corporation due to the outstanding credit risk
that they have which means that the company is able to produce strong cash flow
levels.

Power sector is one of the main factors that help Philippine economy grow. With
Aboitiz Power Corporation being part of it, this already ensures that they will never run
out of customers even when they have another big company as their competitor.
Looking at the current situation, there will surely be a lot of changes that might happen,
and one of it would be people will seldom be out of their place to be safe from things
that can harm them. This may result to make people consume more electricity which
could ensure the company to gain more profit and sustain the interest of the people
within the organization.

The Aboitiz Power Corporation gives stable dividend yield which really make a good
opportunity to those who would like to invest. They handle the risk management well
which can secure everyone that the corporation is doing their best for the interest of
everyone and that they’re not rash to their decisions. Investing in Aboitiz Power
Corporation may not be good for those who would want to earn a lot in an instant but for
those who want to ensure that they will really earn, they should not think twice anymore.