Treat Everything as Case Study, Stock Thoughts: ROX

Treat Everything as Case Study

This blog is not a place where you can find advisories. Never will you read me saying “BUY” or “SELL” a certain stock. Treat the posts here as case studies. Understand the reason why I buy or sell a stock and try it out on a different stock or on a company that you are interested in. Please do not hesitate to share your own ideas. I and the rest of the readers here would be glad to read about it.

This blog is for YOU reader. It is for YOU to learn. It is for YOU to EMPOWER yourself and take control of your investments.

ROX

An interesting stock that is trading at below book and at a PE ratio below 6x. The market gave ROX such valuation due to the obvious reason that ROX is in the sugar industry. However, the market failed to see the entry of ROX and VMC to the energy industry through their cogeneration plants that can take advantage of feed-in tariff rate of 6.63/kWh. Worth noting is that ROX and VMC’s entry to the energy industry will not require huge capital expenditures and years to construct. ROX and VMC’s cogen plants might be able to go online within this year. Also, ROX’s new management seems to be overlooked by the market.

More info here:

https://fundamentalenthusiast.wordpress.com/2013/02/03/roxas-holdings-inc-pse-rox/

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