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The president and owner of Evergotesco, the holding company that owns the chain of Ever Department Stores, is considering several short- and long-term alternatives for his stores in the face of significant changes in the economic environment of the Philippines. Ever stores are a major chain and are largely concentrated in lower income neighborhoods. Forecasts are that the Philippine economy is finally on a growth trajectory. Should the president upgrade his stores and expand geographically? Growth will reduce book profits to almost zero for 1995, and in late 1996, Evergotesco plans to go public. In addition, the foreign investment laws of the Philippines may change within the next few years to allow entry of foreign-owned retailers. Evergotesco has the financial resources to make these investments, but it has also invested in golf courses, marinas and resort properties, investments that have yielded higher short-term profits.