Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

FGEN (FGEN PM): New Contract with Meralco to Support Cash Flow

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Equity Bottom-Up

<ul><li>Low price-to-sales, relatively strong analyst recommendation, and strong stock price momentum relative to its sector</li><li>FGEN is the number-three supplier of electricity to the domestic grid in the Philippines. Growth should be supported by generation-capacity expansion plan, adding around 500MW or 24% capacity by year-end 2016</li><li>Nearly all of its supply contracts are long-term power-purchase agreements, which help to underpin and stabilize its profitability</li><li>Trades at an attractive 16CE* 1.2 PEG ratio, compared to the ASEAN Utilities sector at a PEG of 3.0</li><li>Risks: Facility breakdowns, delay in expansion, regulatory changes</li></ul><p><em>* Consensus Estimates</em></p>

Low price-to-sales, relatively strong analyst recommendation, and strong stock price momentum relative to its sectorFGEN is the number-three supplier of electricity to the domestic grid in the Philippines. Growth should be supported by generation-capacity expansion plan, adding around 500MW or 24% capacity by year-end 2016Nearly all of its supply contracts are long-term power-purchase agreements, which help to underpin and stabilize its profitabilityTrades at an attractive 16CE* 1.2 PEG ratio, compared to the ASEAN Utilities sector at a PEG of 3.0Risks: Facility breakdowns, delay in expansion, regulatory changes* Consensus Estimates

FGEN: Expanding Profitable Power in the Philippines

First Gen

FGEN: Expanding Profitable Power in the Philippines