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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”

KKR – FGEN vs. GIC – ACEN

FGEN and ACEN are two energy companies operating under clean energy banner, although, both still have significant fossil fuel investments. ACEN is generating significant power from coal while FGEN is on much cleaner natural gas. Both energy companies attracted well known global institutional investors. FGEN caught the attention of KKR, a pioneer in private equityContinue reading “KKR – FGEN vs. GIC – ACEN”

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”

Piki Lopez initiates Lopez Group reorganization to unlock value; long-term investors should lock-in to ABS, ROCK, and FGEN while they are still undervalued

Piki Lopez has commenced the reorganization of the Lopez group to unlock value. Piki Lopez is taking Lopez Holdings Corporation (LPZ) private through the acquisition via tender offer by First Philippine Holdings Corporation (FPH) of the 45.56% of LPZ which the Lopezes don’t own. The effect of the transaction would be eliminating one layer ofContinue reading “Piki Lopez initiates Lopez Group reorganization to unlock value; long-term investors should lock-in to ABS, ROCK, and FGEN while they are still undervalued”

In the coal plant ban rally market forgets to include ANS

The Department of Energy (DOE) announced yesterday that it has declared a moratorium on new coal power plant projects. The decision to halt the approval of applications for greenfield coal-fired power plants was to address the need of the country for a shift to a more flexible power supply mix as well as to accommodateContinue reading “In the coal plant ban rally market forgets to include ANS”

First Philippine Holdings (FPH) may increase cash dividend to spruce up value to fend off a potentially hostile SSS holding a 5.48% stake

First Philippine Holdings Corporation (FPH) is the holding company controlling First Gen Corporation  (FGEN).  FPH controls 67.74% of FGEN.  FGEN is one of the Philippines’ largest power generation companies.  It owns a portfolio of solar, wind, hydro, geothermal and natural gas power generation assets. Aside from its controlling stake in FGEN, FPH also controls RockwellContinue reading “First Philippine Holdings (FPH) may increase cash dividend to spruce up value to fend off a potentially hostile SSS holding a 5.48% stake”

Federico “Piki” Lopez takes control of the diminished Lopez Group, what now?

The resignation of Eugenio Lopez III (EL3) from the Lopez Holdings Corporation (LPZ), the Lopezes flagship company,  allowed the younger Lopezes to take the helm of the much diminished Lopez Group. The Lopezes were once a force to reckon with in Philippine business but a series of missteps have slowly shrank the group to irrelevance. Continue reading “Federico “Piki” Lopez takes control of the diminished Lopez Group, what now?”

Gabby Lopez resigns as wealth erosion puts control of the Lopez group at risk

ABS-CBN Corporation (ABS), Rockwell Land Corporation (ROCK), and First Gen Corporation (FGEN), are operating public companies that are thought to be owned by the Lopezes. But the Lopezes do not actually owns them. The Lopezes only control them. They wield control over these companies through layers of holding companies. At a market capitalization of aroundContinue reading “Gabby Lopez resigns as wealth erosion puts control of the Lopez group at risk”

FGEN’s San Gabriel 414MW Combined Cycle Power Plant unavailable for dispatch

First Gen Corporation (FGEN) is currently investigating the condition of the generator of its 414MW San Gabriel Combined Cycle Power Plant following a trip. The initial investigation, which is being carried out by specialists from Siemens Power Operations Inc., indicates that there is an electrical fault in the generator, and pending completion of the inspection,Continue reading “FGEN’s San Gabriel 414MW Combined Cycle Power Plant unavailable for dispatch”

FGEN undervalued

First Gen Corporation (FGEN) and subsidiaries earned $183 Million for the period 1H 2020. What is better is that it was able to translate such earnings into cash from operations of $302 Million. The cash generated from operations allow FGEN to bolster its liquidity. FGEN’s balance sheet has a cash of $748.7 Million as ofContinue reading “FGEN undervalued”