 Good day, fellow investors. The stock that I wanted to have a model on is Enel Generation Chile, a utility in Chile from my list of Chilean stocks that I discussed in the previous Chile video. So I will go through the stock. It is a relatively good investment. It gives a good yield. It gives growth. It gives stability. It gives a lot of things that a lot of people are looking for in their portfolio, especially for dividend investors. So if you are such an investor, you might be interested in something like that. It doesn't really fit my threshold, but my investment threshold risk reward is extremely high. So even good investments like this one don't hit that. Let's dig into the company and analyze, give an overview and see what's the risk reward, what's the potential long-term yield. So Enel, the stock really dropped significantly the last months, the last year. So I really want to see, okay, what's going on with the company? Why it dropped so much? Is there a potential investment? And this is what led me to analyzing the whole market in Chile. The market has been a little bit overvalued, but these two utilities in Chile might be undervalued. The generation ownership structure Enel, the Italian company owns the company in Chile, 60% of it. And then some of it are traded on the New York Stock Exchange, some on the Chilean Stock Exchange. What's very nice is that the company offers a mix, generation mix from Hydro, from Coil, from Oil, and a little bit, just a little bit, not even seeable here from Wind. But that allows them to give them stable production, which is very important for a utility energy producer, as they can then manage between if they have more water, what's cheaper, what's more expensive, etc., etc. Stability, very important. So that said, they have Hydro, they have Thermal, they have some Wind, but mostly Hydro, Coil, Coil, and Oil and Gas. Future sales are relatively fixed through tenders with the government agency that ensures stable margins and they have 150% of the available energy production in the last tender from the government, of course. That's good. They have a health debt maturity profile, long-term maturities. Total debt is 1.2 billion, which is not much when you compare it to what 300-400 billion in available cash flows that will come in the next few years per year. The cash flow operation is still just 212,000 has been, they pay a lot in dividends, so 360 paid in dividends, but that was also because of some sales of assets. So I expect the dividends to be around 200 million in the future. So don't look at that 10% yield and think it will be recurring. However, the company has invested a lot in growth. They have some new projects coming online. There is more demand for energy in Chile and they expect to increase the EBITDA and dividend policy payout ratio from 60-50% in 2016 as they invested a lot to 70% in 2020. So higher dividends are to be expected. The dividend growth player this is to be like Yoda. The target is to improve EBITDA by 26% up till 2019 as they will lower CAPEX, they will lower investments, they will just keep maintaining, which is much, much cheaper, which means there will be more cash flows for dividends. So with net income a bit higher, let's say they get to 500 billion pesos or 790 million in net income. This is a little bit stretched, perhaps we could get to 2.87 per share. That would be very, very positive. That would give a price earnings ratio of 7.14 in 2020, implying a 14% return. When 70% of that goes to dividends, that would be 2% for a 10% yield on current prices. However, there is often the Chilean tax that's often not mentioned of 35% withholding tax on dividends, but which would make it fall to 6.5, but on that 45% that's deducted you have to add back 50% of the taxes that has been paid to the net income. I didn't dig into the tax system, but that's something you should do before investing. So it might drop to 20%, which makes things a little bit better. However, the trailing earnings are 347 billion pesos, so it's more likely with a 26% increase that earnings will be around 400 billion pesos. This would equal to 640 million or 2.29 in earnings per share. That makes things much less attractive. The dividend would then be 1.6, which is then 7.8, with the taxes we are down to 6%, which is not an incredible yield. So I think that the company will lead to a 10% long-term return. We might see it go back from 2.30 from the current 20 as everything fits and everything cools down. The other company in Chile that also dropped a lot has assets in Argentina and Brazil, which is a different story. Those countries are not as stable in Chile. So this stock might be down because the peer from Chile, which is not actually from Chile, is already also down. So different sentiment, nothing changes in the numbers or perhaps I didn't see it, so correct me if you see that. So there is really potential for 20 to 30, there is potential for a dividend yield of 7, 8% in the long-term, perhaps growing slowly to 9, 10% over the long-term. So if you're looking for a good dividend player in a stable country like Chile, emerging country that might see more energy consumption, especially if copper explodes. So that's something, an interesting play to see how it fits your portfolio. For me, it might be interesting if it goes down to 15. You never know, 15 and below, then it might hit my risk-reward threshold, which is very stretched. So this finishes my preliminary research. I have it now in a small model, in my file. If it ever hits 15, 14, then I just, okay, I have the data quickly, should I buy, I research again, and then I see whether it's a buy or not. And that's what I do. I have a lot of stocks, more adding every week, something, something to watch to see. And then when I have a lot of stocks, 200, hopefully, then I can see, okay, I can immediately know what I cover, what I buy, and that's what I do as I am a full-time stock market researcher. Check the link below for my stock market research platform, if you are interested in that. Looking forward to your comments and I'll see you in the next video.