IRC Properties, Inc. (IRC) has been the hot talk of the town for a few days. The stock has risen from 0.72 at the start of the year to roughly 2.32 today.
Makati Subway System Project
The stimulus for the recent run-up in the past few days is the announcement of the Makati Subway System. As announced by the City Mayor Abby Binay on August 23, 2018, the project is set to break ground in December 2018.
This intra-city subway project is seen to be the solution for Makati’s traffic problem. The project is expected to finish in 2025.
A private consortium led by IRC Properties, Inc. proposed the project to the LGU. The estimated total project cost is at USD 3.7 billion.
The local government will not spend on the project, but the consortium will fund it.
Furthermore, the project will span 10 kilometres, which can accommodate up to 700,000 passengers per day. It will pass through key areas such as the Makati City Hall, Ayala Avenue, University of Makati, Ospital ng Makati, and Poblacion Heritage Site.
The company was in the oil exploration business before it switched to the real estate industry. Majority of the companies attention is in its development of a 2,200-hectare property located in Binangonan Rizal.
It was funded through stock rights offering conducted in June 2010 that raised PHP 400 million. On August 5, 2010, the company entered into a joint venture with Dreamhauz Management and Development Corporation.
The project aimed to develop 150,000 square meters of the Binangonan property into a residential subdivision called Sunshine Fiesta Subdivision.
IRC Properties’ Subscription Agreement with ABG
IRC also entered into a subscription agreement with the Aggregate Business Group (ABG) on April 10, 2018. The latter subscribed to 172,800,000 common shares of IRC for a subscription price of PHP 1.40 per share or a total consideration of PHP 241,920,000.00.
This figure was taken from the unissued authorized capital stock of the company.
As of the first half of the year, the company generated revenues totalling PHP 119.71 million, higher by 24.44 percent versus the recorded PHP 96.19 million from the same period a year ago.
This was mainly due to the reversal of a PHP 50 million notes payable to PrimeEast which was recognized as income.
Net income was correspondingly higher at PHP 25.75 million, more than double of the recorded PHP 11.21 million in the same period a year ago.
Possible Reversal Candle?
The stock registered a possible doji today. This is a possible reversal candle that may cause the stock to go down the next day.
However, this is yet to be confirmed tomorrow. The 50 percent Fibonacci retracement line from the recent run-up acted as intra-day support.
The moving averages are bullishly aligned with the 15 EMA and 20 SMA as immediate support.
Moreover, the volume supports a bullish outlook. MACD is bullish. RSI is also bullish but is at overbought levels.
Estimated support is at 2.13 followed by 1.95. Expected resistance is at 2.34.
Volume
As of September 11, 2018, at 03:30 PM, the volume of IRC is 72.43% of the previous trading day. This stock’s latest volume is already above its 30-day volume average.
Remember the correlation between price and volume.
bullish price + volume above the 30-day volume average = bullish
bullish price + volume below the 30-day volume average = neutral
bearish price + volume above the 30-day volume average = bearish
bearish price + volume below the 30-day volume average = bearish
Risk Level
IRC has an EXTREMELY HIGH-RISK level due to its risk percentage of 114.34%.
Foreign Fund Flow
IRC registered a Net Foreign Buying worth P344,760.00 as of September 11, 2018. On a 30-day trading period, IRC is on a Net Foreign Buying worth PHP496.34.
Top 10 Players’ Sentiment
Trading participants of IRC with a 100% Buying and Selling Activity as of Sep-11-2018 at 03:30 PM:
9 out of 69 participants or 13.04% of all participants registered a 100% BUYING activity
9 out of 69 participants or 13.04% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 2.2892
Top 10 Players’ Selling Average: 2.2886
The psychological average price of the top 10 players as of Sep-11-2018 is from 2.2886 to 2.2892.
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