PHI Group Inc (OTCMKTS:PHIL) Is Today's Stock Focus

The stock price of PHI Group Inc (OTCMKTS:PHIL), the investment company, jumped sharply this month. More than 3 million shares changed hands in a few days, and the share price went from less than $0.01 to $.02 a share. Several news items were put out some days ago that caused the share price increase. They include the acquisition of shares by the CEO and the investment of $15 million in Constructii SA; a Romanian company engaged in construction and manufacturing since 1950. We will provide all the details in this piece, but first have a look at the most recent share price action:

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Business

Let's recap the business objective of PHI Group. It focuses "on mergers and acquisitions and investments in natural resources, energy, agriculture and special situations that may substantially enhance long-term shareholder value." The group was founded in 1982.The company has been quite active putting out news recently. On June 14, 2017, it was put out that Yen Bai People’s Provincial Committee had approved the policy to permit a Joint Venture ("JV") between PHI Group and Hung Vuong Export Import and Construction JSC; a Vietnamese company. The JV is planning to establish a 100-MW renewable energy power plant on a 100-hectare land area in Yen Binh District, Yen Bai Province, Northern Vietnam. $297 million were said to be the amount of money that the JV will invest. The following information about the returns and the future plans of PHI Group were given:

"At current electricity price levels, which are expected to rise over time, projected average annual revenues and EBITDA during the first 9 years of operation are $101 million and $79.4 million, respectively. The Company plans to use an innovative kinetic power system developed in Germany as the preferred technology and has also considered other alternative renewable energy technologies if needed." Source

Henry Fahman, Chairman and CEO of PHI Group, explained:

“We greatly appreciate the prompt decision and earnest support of Yen Bai People’s Provincial Committee and will continue to work diligently with Hung Vuong as well as our technical and financial partners to carry out this plan as soon as possible.” Source

In our opinion, the most significant news was released some weeks before. On May 31, 2017, a definitive agreement to acquire 51% of Maxagro SRL, a Romanian farming company in Timis County, Romania, was put out. The price has not yet been disclosed, but the company said that it would be paid in cash or stock. Additionally, it said that Maxagro desires to close the transaction "on August 08, 2017, unless extended by mutual consent of both parties". Henry Fahman, CEO of PHI Group, Inc., said:

“We are delighted to work with Maxagro’s management by combining our strengths and expertise to meet the growing demand for healthy organic agricultural products in Europe.” Source

In our opinion, the closing of the merger will make the share price move quite a bit, so we encourage readers to be alert as we expect news regarding this transaction very soon.Another interesting transaction was put out on June 29, 2017 about entering into a “Contract for Transfer of Shares” to purchase 51% of equity ownership in Constructii SA, (“CSA”); a Romanian company engaged in construction and manufacturing. The closing is expected to occur "within a maximum of sixty days from the date of signing of the Contract." This closing may be another catalyst for the stock, so we will need to be alert on it too.The CEO is buyingWe had access to this information, which was released a few days ago:1.Title of Security(Instr. 3)2. Trans. Date2A. Deemed Execution Date, if any3. Trans. Code(Instr. 8)4. Securities Acquired (A) or Disposed of (D)(Instr. 3, 4 and 5)5. Amount of Securities Beneficially Owned Following Reported Transaction(s)(Instr. 3 and 4)6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)7. Nature of Indirect Beneficial Ownership (Instr. 4)CodeVAmount(A) or (D)PriceCommon Stock 7/25/2017 P 20000000 A$0.015 25728347 D SourceThe CEO acquired 20 million shares. This is a great news. It does not only mean that he trusts the future of the company, but the fact that he is buying right now could mean that good news is about to hit the market.ConclusionPHI Group released some very good news recently and announced several catalysts that have made the share price jump. First of all, the JV agreement is expected to deliver big returns. Additionally, the decision of Yen Bai People’s Provincial Committee was a great step. Furthermore, the transactions announced were not only interesting announcements, but the most relevant is that the closing date was given. The closing announcements are expected to hit the market soon, so we will need to be alert on them. To sum up, this is a name to follow closely.We will be updating our subscribers as soon as we know more. For the latest updates on PHIL, sign up below!Image courtesy of Steve Sorensen Networth via FlickrDisclosure: We have no position in PHIL and have not been compensated for this article.