As I rebuilding my portfolio, MRC is now comprised 9.80% of my portfolio as of today. My portfolio can be viewed here.
Why Investing MRC?
Fundamental views:
This ticker is on my radar since Mid-2016. MRC has the business interests in property development, mining exploration and renewable energy.
Property development, the Company has two land banks consisting of 160 hectares industrial estate in Naga City, Cebu known as the New Cebu Township One (NCTO) and 700 hectares of raw land in San Isidro Municipality, Leyte known as Amihan Woodlands Township (AWT). Both parcels of land are registered with the Philippine Economic Zone Authority (PEZA). Based on the latest appraisal, the properties have a fair market value of Php1.5 billion.
Mining exploration, the abundant mineral deposits and recent government pronouncements prompted MRC to pursue the opportunity for a shift in business strategy. Global trends in metal prices and the preference for gold as the stable reserve definitely add value to mining resources available worldwide. Key acquisitions by MRC over the last several years include mining assets in various areas of Tampakan, Surigao, Davao and Boston-Cateel Mines with an aggregate area of over 25,000 hectares.
Renewable energy, solar power projects of the Company will be pursued mainly through its subsidiary Menlo Renewable Energy Corporation (MREN) and other affiliates. These projects are: The 60 MW Naga Solar Project, solar power plant within its property in Naga City, Cebu that can either supply electricity to the Visayas grid and/or offer its production to large power consumers within and around Southern Cebu. The project is currently in its pre-development phase and the development thereof is estimated at PhP3 billion. The 100 MW Clark Solar Project, the Bases Conversion and Development Authority (BCDA), Sunray Power, Inc. (SPI) and Menlo Renewable Energy Corp. recently launched a partnership that will develop a 100MW solar power plant inside the Clark Green City in Tarlac. The large solar power project will generate power to be consumed by the locators of the Clark Green City and the development thereof will be worth at least Php11.75 billion. The 50 MW Palo Solar Project, MRC has acquired a 15 percent stake in the 50-megawatt Sulu Electric Power and Light Philippines Inc. (SEPALCO) Solar Project in Palo, Leyte for $5 Million or Php255 million.
My Technical Views:
Based on the charts above, today’s close price at 0.37 is below 23.6% of Fibonacci Retracement from the most current support at 0.28 on 7-Nov-2018 and resistance at 0.78 on 24-Sep-2018, though noticeable enough that RSI14 just a bit above an overbought territory.
My buy signal on 18-Dec-2018 re-affirmed on 26-Jun-2019 and the crossed of EMA21 and MA34, means for me that it will be safe to accumulate at this price range.
Conclusion: Despite accumulated losses and piled up deficit retained earnings since inclusion in the PSE roaster in 1994 until this present day, I believed that the intrinsic value is still intact. MRC’s renewable energy projects are where I’m interested the most as a long investor. The technological advancement gives an edge to renewable energy specifically solar power. If all MRC’s business ventures will materialize as plan, for sure your investment today will translate into a massive profit in the future. As an aggressive and a high-risk taker investor, I betted MRC purely as my high risk/reward long term speculative investment.
DISCLAIMER: I'm not a Certified Financial Planner. Published herein is my personal opinion and should not be construed as a recommendation, an offer, or solicitation for the subscription, purchase or sale of this security.
