Nickel Asia Corporation (NIKL) made multiple announcements today through the material information and transactions report.
First, it declared a cash dividend of thirty centavos (PHP 0.30) per common stock, with a record date of September 11, 2018. The payment date is on September 27, 2018.
Second, NIKL declared 80 percent stock dividends, with a record date of October 23, 2018. These will be from NIKL’s unissued capital stock and are subject to stockholder’s approval.
Another announcement is that the board has already approved adjustments to grants under its 2014 Stock Option Plan and its 2018 Stock Option Plan.
This decision is to factor in the stock dividend declaration. It is also subject to stockholder’s approval.
Furthermore, the board approved the amendments on its Corporation’s By-Laws which include the addition to its officers and modifications on the functions of corporate officers.
Lastly, the company announced the special stockholder’s meeting to discuss the 2nd, 3rd, and 4th items above. It will be held on October 9, 2018, at 2 PM. The venue will be announced on a later date.
Nickel Asia Corporation Shipment Trouble?
NIKL earned PHP 7.38 billion for the first half of 2018, a 6 percent decline compared to the recorded PHP 7.82 billion in 2017.
The value of the company’s shipment was relatively low, mainly because of lower ore export prices. The continuous increase in supply from Indonesia causes the decline.
Moreover, NIKL sold an aggregate 8.89 million wet metric tons (WMT) of nickel ore sourced from four of its operating mines. This figure is slightly lower than the 8.92 WMT in 2017.
Net income totaled to PHP 2.09 billion for the first half of 2018, 5.17 percent lower than the PHP 2.20 billion recorded in 2017.
Technical Analysis
NIKL spiked up today as investors tried to suggest the multiple announcements made by the company. The 15 EMA, 20 SMA, and 50 SMA are acting as support.
The 200 SMA is acting as immediate resistance. Volume was quite heavy today and is in support of the bulls. MACD is bullish as well.
Nonetheless, RSI is also bullish but has hit overbought levels. Support is estimated at 5.30 while resistance is expected at 5.86.
Volume
As of August 29, 2018, at 03:30 PM, the volume of NIKL is 112.51% of the previous trading day.
Remember the correlation between price and volume.
- bullish price + high volume = high sustainability (price)
- bullish price + low volume = low sustainability (price)
- bearish price + high volume = high sustainability (price)
- bearish price + low volume = low sustainability (price)
Risk Level
NIKL has a MODERATE-RISK level due to its risk percentage of 58.23%.
Foreign Fund Flow
NIKL registered a Net Foreign Buying worth P11,384,337.00 as of August 29, 2018.
On a 30-day trading period, NIKL is on a Net Foreign Buying worth PHP44,385,707.00.
Top 10 Players’ Sentiment – August 29, 2018
Trading participants of NIKL with a 100% Buying and Selling Activity as of Aug-29-2018 at 03:30 PM:
17 out of 71 participants or 23.94% of all participants registered a 100% BUYING activity
16 out of 71 participants or 22.54% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 5.5849
Top 10 Players’ Selling Average: 5.5777
The psychological average price of the top 10 players as of Aug-29-2018 is from 5.5777 to 5.5777.
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