Italpinas Development Corporation (IDC) made a disclosure yesterday, September 6, 2018. It stated that it amended its Articles of Incorporation (AOI), relative to its Preferred Shares, with emphasis on its convertibility feature.
The company has an authorized capital stock of PHP 377,933,600, comprised of 655,987,200 common shares with a par value of fifty centavos. Another 100 million preferred shares with a par value of fifty centavos are part of the capital stock.
The original version of the AoI had the preferred shares as non-voting, cumulative, non –convertible, participating, and redeemable. The second version removed the non-convertibility feature of the stock.
In the first version, it said that it was non-voting. Non-voting means that the shares do not have voting rights like to elect corporate officials and to vote for company changes that may require stockholder’s approval.
It stated that it is Cumulative. It means that should the company fail to pay the required dividends for a particular year, the dividend in arrears will still be payable in the future before any profit can be declared to common stockholders.
Meanwhile, non-convertible means that the Preferred Shares will stay preferred and will not have any chance to convert to Common Shares. Non-Participating means that the Preferred Stockholders do not share from Common Stockholders if ever there are excess earnings after paying the regular dividends for Preferred Shares.
Lastly, Redeemable means that the company reserves the right to redeem the preferred shares from the stockholders. It implies that IDC can get back its issued preferred shares by forcing preferred shareholders to sell back their shares at an agreed price.
ItalPinas Development Cancels Non-Convertible Feature
With the new revision, it appears that IDC decided to cancel the Non-convertible feature. It implies that the company might be open to offering convertible shares in the future.
IDC booked revenues of PHP 165.81 million for the first half of the year. This figure is almost double than what the company earned in the same period in 2017 at PHP 84.4 million.
Net income totaled to PHP 23.66 million, higher by 21.66 percent versus the recorded PHP 19.45 million in the same period in 2017.
Nonetheless, IDC made a 6-month high. The short and medium-term moving averages are bullishly aligned. The 15 EMA and 20 SMA poised for a bullish crossover with the 200 SMA. Price is also above the 200 SMA suggesting that it may act as support.
Furthermore, the volume profile already supports a bullish outlook. MACD is bullish.
RSI is also bullish but is at overbought levels. Estimated support is at 6.61 while expected resistance is at 7.40.
Volume
As of September 6, 2018, at 03:30 PM, the volume of IDC is 32.78% of the previous trading day.
Risk Level
IDC has a HIGH-RISK level due to its risk percentage of 79.13%.
Foreign Fund Flow
IDC registered a Net Foreign Selling worth P930,670.00 as of September 06, 2018.
On a 30-day trading period, IDC is on a Net Foreign Selling worth PHP32,773,173.00.
Top 10 Players’ Sentiment
Trading participants of IDC with a 100% Buying and Selling Activity as of Sep-06-2018 at 03:30 PM:
9 out of 46 participants or 19.57% of all participants registered a 100% BUYING activity
13 out of 46 participants or 28.26% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 6.6056
Top 10 Players’ Selling Average: 6.6296
The psychological average price of the top 10 players as of Sep-06-2018 is from 6.6056 to 6.6296.
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