Global Value Investing

[throwerw]

EDC Energy Development Corporation

This one looks expensive at 30 times earnings, but there may be something hidden here.

In AP's most recent presentation on page 27, there is an item under "Privatization," "IPPA Contracts - Unified Leyte Geothermal Plants(EDC) 550MW" Unified Leyte currently belongs to EDC.

http://www.aboitizpower.com/investorrelations/uploads/file/AP%20FY2010%20Financial%20&%20Operating%20Performance.pdf

Geothermal makes up a big part of AP's power generation, and the economics look great.

EDC is focused exclusively on geothermal

http://www.energy.com.ph/our-expertise/exploration/

http://www.energy.com.ph/wp-content/uploads/2011/03/EDC-Investors-and-Analyst-Briefing-FY-2010-Financial-and-Operating-Highlights-Final.pdf

"In Chile, EDC applied for 13 sites via direct applications (September 2010) and participated in the tender process for another 5 geothermal concession areas (November 2010)"

"In Indonesia, EDC is assessing 16 priority sites in Sumatra, Java and North Sulawes"

http://en.wikipedia.org/wiki/Geothermal_power_in_the_Philippines

The Philippines is second in the world only to the United States in geothermal power generation. EDC is leveraging their experience to develop geothermal projects in other developing countries like Chile, which have little to no experience with geothermal. Seems like a good position to be in.