[17W50] BRN Fundamental & Technical Overview

Technical Overview:   EMA crossed MA and RSI is in uptrend territory. This is supported by parabolic stop and reverse (SAR) at 0.97 in an uptrend position as well, while buying signal shown in green arrow is an indication that 0.92 is the new support level and a retest from its previous resistance level of 1.42 will be highly expected soon. In short, price range from 0.92 to 1.42 is a potential buy for a long-term strategist.   

In my published [17W50] PHP Investment Portfolio, you will noticed I added 850M BRN shares on December 14, 2017. Why back to back purchased of BRN? It’s obvious that I’m bullish as I have outlined my reasons in my post entitled [BRN] A Brown Co. Inc. – Fundamental & Technical Analysis.    

In that post I mentioned the potential of BRN to boost their intrinsic value, long-term return of investment (ROI) growth due to the following catalyst in the year ahead:

Nuclear Power Technology: BRN forged an agreement with Russia's Rusatom International Network to promote the use of nuclear power technology in the Philippines.  The memorandum of understanding was signed by A Brown president Roel Castro and Rusatom International president Alexander Merten during one of the world's largest nuclear expositions in the Russian capital.   

Renewable Energy:  The hydropower projects will be undertaken by A Brown with partner Rebisco Group, but the project company is in the works. PCPC, a joint venture between Palm Thermal Consolidated Holdings Corp. (PTCHC) and Jin Navitas Resource Inc. (JNRI), is the project company for the 2x135-MW coal-fired power plant project in Concepcion, Iloilo and it has put up a 135-MW coal plant which started commercial operations on August 16, 2016.   

Rusatom Healthcare:  BRN and partner Rusatom Healthcare, a division of Russian State Atomic Energy Corp. Rosatom, will build a network of agro irradiation centers in the Philippines starting 2018 to improve the country’s agribusiness sector. 

Bunker-Fired Power Peaking Capacity: Peakpower Energy Inc. (PEI) is a subsidiary of BRN plans to add another 70 megawatts (MW) of peaking capacity across the country after focusing its developments in Mindanao. Peaking plants are power facilities that run during peak hours to meet the sudden surge in power requirements in a grid. For this year, PEI will complete the expansion of its existing peaking plants in Mindanao.   

East West Railway Project: Blaze Capital Limited – 100% owned by BRN, Blaze Capital Limited is a British Virgin Islands company, incorporated and registered on August 8, 2011. It was acquired by BRN on May 22, 2017. Blaze Capital Limited has a 33.33% ownership in East West Rail Transit Corporation (EWRTC) which is part of a consortium for the East-West Railway Project.   

WARNING: Even though I see the potential in power generation specifically nuclear power technology and renewable energy, most of these projects are in initial development stages. BRN’s real properties are the only segment that earned money and I’m bearish in this sector.  Water services are losing money and palm plantation heavily opposed by the natives in the area.  As I always reiterated, invest at your own risk.   

DISCLAIMER: I am not a Financial Advisor. Expressed in this blog is my personal opinion only and should not be construed as a recommendation, an offer, or solicitation for the subscription, purchase, or sale of this security. 

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