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: Expanding Profitable Power in the Philippines

Interesting Stocks to Consider in ASEAN, Vol. 2

Interesting Stocks to Consider in Asia, Vol. 2

Interesting Stocks to Consider in Thailand, Vol. 2

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Equity Bottom-Up

<ul>
<li>Low correlation to the Thai market, low correlation with Western stock markets, and cheap on a PE basis relative to its sector</li>
<li>Stable cash flow from new contract for FGEN’s San Gabriel plant to sell its entire capacity of 414 MW to Meralco <a href="https://www.smartkarma.com/entities/3527" target="_blank" data-smartkarma-citation="entities:3527:1">Manila Electric Company (MER PM)</a>  until 2024</li>
<li>Geothermal-energy producer EDC has been delisted through a share buyback tender offer, FGEN to benefit from higher equity stake (47% vs 42%) and more control over the firm to implement longer-term strategies</li>
<li>Trades at discount to ASEAN Utilities at 19CE* 6.5x PE and offers much better EPS growth</li>
<li>Risks: Facility breakdowns, uncertainty regarding plans for LNG facility</li>
</ul><p><em>* Consensus Estimates</em></p>


Low correlation to the Thai market, low correlation with Western stock markets, and cheap on a PE basis relative to its sector
Stable cash flow from new contract for FGEN’s San Gabriel plant to sell its entire capacity of 414 MW to Meralco Manila Electric Company (MER PM)  until 2024
Geothermal-energy producer EDC has been delisted through a share buyback tender offer, FGEN to benefit from higher equity stake (47% vs 42%) and more control over the firm to implement longer-term strategies
Trades at discount to ASEAN Utilities at 19CE* 6.5x PE and offers much better EPS growth
Risks: Facility breakdowns, uncertainty regarding plans for LNG facility
* Consensus Estimates

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

First Gen

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