Notwithstanding the increase in 2008 1Q profits of MER, their price dipped from the Php80 level to Php69 in a couple of days.
Meralco is under attack by the GSIS. The folks over at the Government Security Insurance System say Meralco has been charging customers to compensate for their own inefficiency. It appears that they think they can undue what has been done or prevent any further similar action by legal process.
Not good for the stock price. This is true specially since Meralco has been under pressure from the administration to lower their rates.
However, if the GSIS can really do all that is another matter. I place my bet on MER and find this to be an opportune time to buy into this company at a bargain.
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