EDC Stock Price Plummet
January 31, 2012 3 Comments
EDC (Energy Development Corporation) is primarily engage in the business of exploring, developing and operating geothermal energy projects in the Philippines. As of December 31, 2010, EDC operates twelve geothermal steamfields in five geothermal service contract areas where it is principally involved in the production of geothermal steam for sale to the National Power Corporation (NPC) pursuant to steam sales agreements. (source : PSE)
After the news came out last Monday (30Jan2012) that EDC’s Bacman plant rehabilitation will be delayed until September 2012. The Philippine Stock Market react negatively on this kind of bad news. And in just 2 days after it’s announcement, EDC stock price were down by more than 10%.
Of course equity market normally react like this, “sell on bad news and buy on good news.”
For me, this kind of bad news is an opportunity to add more positions on this fundamentally good stocks. Although this stock were temporarily battered, I am very much optimistic about its potential growth.
There is always a bright prospects on the profitability of EDC once the much awaited Bacman plant gets ramped up to its full capacity. I guess it may not be a good bite for a short term investor but, I still believe that a good earnings for this company is within the horizon.
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About "The Overseas Pinoy Investor"
"The Overseas Pinoy Investor"
Now its your “my favorite EDC” hahahhahhahaha…
Agreed. EDC is a good buy. Despite the retreat the couple of days, I still see EDC having good fundamentals and will definitely sustain growth in the long term. Plus, I like the fact that we are harnessing energy from a non depletable source… STEAM.
I may be biased here but yes, the company will withstand the undercurrents. Hopefully by 3rd and 4th quarter when the plants are up and running already. Luck of the Irish, bring it on!