First Gen Corp. (FGEN) is seeking a 40% partner for its USD1 bn Liquefied Natural Gas (LNG) Terminal in Batangas City. This will support the LNG needs of FGEN’s existing and upcoming power plants. This is part of FGEN’s overall plan and was detailed some two years back already. Given the huge capex, FGEN will definitely need a partner while it devotes more of its capex for its upcomg power plants. The huge capex requirements minimize FGEN’s fair value. Without going into projections and valuations, the current share price of FGEN is already near heavily discounted asset valuations. The current market downturn also increases FGEN’s bargain level. With bright prospects, a good master-plan and attractive price, FGEN is a good stock to position in.
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