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Consunji’s DMC and Aboitiz’s AP sit on opposing ends of the coal trade, may explain their respective buying and selling of their companies’ shares

Two notable publicly listed companies are at the forefront in the coal trade. But the two are sitting on the opposite end of the coal trade. Their respective positions in the coal trade may explain their owner’s action. Aboitiz Power (AP), controlled by the Aboitiz family, is one of the biggest if not the biggestContinue reading “Consunji’s DMC and Aboitiz’s AP sit on opposing ends of the coal trade, may explain their respective buying and selling of their companies’ shares”

Surging coal could hurt AP, ACEN

Coal prices continue to surge. The rising coal price raises the fuel cost of coal-fired power plants. Notable publicly listed companies operating base-load coal plants are Aboitiz Power Corporation (AP) and AC Energy Corporation (ACEN). Semirara Mining and Power Corporation (SCC) is predominantly a coal miner with coal-fired power plants. ACEN operates the base loadContinue reading “Surging coal could hurt AP, ACEN”

AEV learns from Transport/2GO experience, cashes out portion of Power while value is still high

In 2010 Aboitiz Equity Ventures (AEV) sold Aboitiz Transport System operating under the 2GO brand to Negros Navigation Co. (NENACO) for 3.5 Billion Pesos. AEV incurred a loss of 74.6 Million Pesos on the sale of 2GO. The loss may have been small, but AEV made an impairment charge before that of 2.1 Billion Pesos.Continue reading “AEV learns from Transport/2GO experience, cashes out portion of Power while value is still high”

AP should learn from GMA7 that the proof of the pudding is in the eating

AP should learn from GMA Network (GMA7) that the proof of the pudding is in the eating. GMA7 a traditional-free-to-air broadcasting company saw a significant rise in share price when it declared 1.35 cash dividend. At the time of the dividend declaration GMA7 was just trading at a day high of 7.49 a share. TheContinue reading “AP should learn from GMA7 that the proof of the pudding is in the eating”

Coal eroding further investors’ appetite for Aboitiz Power

Aboitiz Power (AP) controls a coal-fired generating capacity of around 2,745.27 MW. As previously reported by Bloomberg, coal prices have been surging lately because of pent-up demand globally. The increasing coal prices may increase the fuel cost of the huge coal-fired generating capacity of AP. Increased cost could-affect is bottom-line. The ability to pass-on theContinue reading “Coal eroding further investors’ appetite for Aboitiz Power”

FGEN just 8% below 52-week high but still priced below book value

FGEN and subsidiaries including geothermal operator Energy Development Corporation reported a 2020 financial result showing resiliency against the pandemic. The FGEN Group ended 2020 with a cash balance of US$ 772.2 Million, US$148.3 Million higher than at the end of the preceding year. Short-term and current debts total to just US$464.3 Million. Servicing its debtContinue reading “FGEN just 8% below 52-week high but still priced below book value”

The rise of ACEN to a 52-week high of 6.93 exhibits the power of retail traders

From a low of 1.39 on March 13, 2020 ACEN steadily climbed to a high of 6.93 on November 24, 2020.  Since then, ACEN has been trading at the 6+-peso level.  At that level ACEN is valued at 17.98 P/E higher than the P/E of any power generation company. FGEN has a P/E of 8.71Continue reading “The rise of ACEN to a 52-week high of 6.93 exhibits the power of retail traders”