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.

Interesting Stocks to Consider in Asia, Vol. 2

Interesting Stocks to Consider in ASEAN, Vol. 2

MER (MER PM): No. 1 in Philippine Power to Enter Africa

Interesting Stocks to Consider in Thailand, Vol. 2

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Equity Bottom-Up

Manila Electric Company / Equity Bottom-Up

<ul>
<li>Low correlation with Western stock markets, low correlation to the Philippines market, and more attractive to analysts relative to its sector</li>
<li>New coal-fired power plant, San Buenaventura, to add 455MW capacity upon its completion, which is expected in 3Q19</li>
<li>Planned overseas project to provide diversification and expansion, currently waiting on the government of Ghana to provide formal contract to operate the Electricity Company of Ghana</li>
<li>Trades above ASEAN Utilities at 19CE* 5.6x PB but offers much better ROE and a net-cash balance sheet</li>
<li>Risks: Change in government regulation to lower distribution rates, fail to get approval for domestic projects, delay or failure to win bid in Ghana</li>
</ul><p><em>* Consensus Estimates</em></p>


Low correlation with Western stock markets, low correlation to the Philippines market, and more attractive to analysts relative to its sector
New coal-fired power plant, San Buenaventura, to add 455MW capacity upon its completion, which is expected in 3Q19
Planned overseas project to provide diversification and expansion, currently waiting on the government of Ghana to provide formal contract to operate the Electricity Company of Ghana
Trades above ASEAN Utilities at 19CE* 5.6x PB but offers much better ROE and a net-cash balance sheet
Risks: Change in government regulation to lower distribution rates, fail to get approval for domestic projects, delay or failure to win bid in Ghana
* Consensus Estimates

MER (MER PM): Solid Fundamentals at No. 1 Philippine Power Producer