ISM Communications Corporation (ISM) sizzled in the Philippine Stock Exchange today as it dropped by 12.72 percent.
On October 1, 2018, ISM clarified the news from Manila Standard. The article stated that ISM plans to sell 32.50 percent of its stake in Acentic GmbH of Germany. It is while the company looks for new investment opportunities from its recent capital raising.
Some speculators are saying the Uy is planning to use ISM as its entry to the telecommunications industry.
ISM confirmed the above news, adding that it has always been open to selling its stake with Acentic at the right price. However, it stated that there are no definite plans or proposals yet.
Furthermore, the company clarified that it is not involved in the telecommunications business. It is not considering any plans to join this industry anytime soon.
ISM Communications’ Finances in Focus
On September 28, 2018, the company announced that its Board of Directors approved a change in its Articles of Incorporation. It includes a change in name to ISM Holdings, Inc.
This decision complies with the SEC’s directive, to change the company name to reflect the current primary purpose of the Company as that of a holding company.
On August 17, 2018, Dennis Uy acquired 45.13 percent of ISM Communications Corporation through his holding company Dennison Holdings Corporation. Uy bought PHP 1.28 billion worth of shares of the company.
Moreover, A total of 883.73 million unissued common shares were subscribed for a price of PHP 1.45 per share. An industry source also said that ISM may be used for a backdoor listing but not for a telco.
The company recorded net loss of PHP 19.69 million for the first six months of the year. This figure is 38.92 percent better than the recorded PHP 32.18 million loss in the same period in 2017.
Technical Analysis
The stock broke down below support today. The short and medium term moving averages are bearishly aligned. The 15 EMA and 20 SMA are acting as immediate resistance.
Furthermore, volume grows on a red candle. MACD is turning bearish. RSI is also bearish and is nearing oversold levels.
Nonetheless, estimated support is at 2.36. Expected resistance is at 2.57 followed by 2.78.
Volume
As of October 1, 2018, at 03:30 PM, the volume of ISM is 386.01% 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
ISM has a HIGH-RISK level due to its risk percentage of 75.34%.
Foreign Fund Flow
ISM registered a Net Foreign Selling worth P267,290.00 as of October 01, 2018. On a 30-day trading period, ISM is on a Net Foreign Selling worth PHP946,100.00.
Top 10 Players’ Sentiment
Trading participants of ISM with a 100% Buying and Selling Activity as of Oct-01-2018 at 03:30 PM:
28 out of 57 participants or 49.12% of all participants registered a 100% BUYING activity
3 out of 57 participants or 5.26% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 2.6071
Top 10 Players’ Selling Average: 2.6050
The psychological average price of the top 10 players as of Oct-01-2018 at 03:30 PM is from 2.6050 to 2.6071.
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