Fundamental Analysis
A Brown Company, Inc. (BRN) belongs to the Property sector.
BRN’s PE (ttm) of 10.60, versus the industry’s 36.84, makes this stock an undervalued company.
Its Price-to-Sales (ttm) of 6.65, versus the sector’s 15.69, makes BRN an undervalued stock.
The company’s Price-to-Book of 0.81, versus the property sector’s 5.37, makes BRN an undervalued stock again.
I won’t just mention all of the valuation ratios but as far as BRN versus the property sector is concerned, BRN is an undervalued company.
Technical Analysis
There has been a breakout on the weekly volume of BRN for the past two weeks.
While BRN appears to be in a perfect bullish trajectory since the longer-term Simple Moving Averages (SMAs) are hovering the shorter-term SMAs, it is yet to enter the confirmed bullish state if you’re going to plot its Monthly and Daily charts.
The Relative Strength Index (RSI) and Stochastic seem to agree with my insight since none of which places BRN in an oversold stance.
Nonetheless, RSI Daily and Stochastic Daily are very close to the classical zone for the oversold territory.
Today’s closing price already broke out above the upper Bollinger band both on the daily and weekly charts.
BRN’s major support is at 0.93, while the major resistance is at 1.34.
Volume
As of April 30, 2018, at 03:30PM, the volume is 1,505.94% of the previous trading day.
Every time I post my volume chart, I want you to see if the volume bar is above the stock’s 30-day volume average.
If the closing price is bullish and the volume is above its 30-day volume average, the bullish price might continue.
If the closing price is bearish and the volume is below the 30-day volume average, the bearish price might continue.
Price-Volume Distribution
The favorite price points today were 1.20 and 1.24. These could act as the intraday support or resistance levels by the next trading day.
It’s been 6 months since BRN broke above the 1.18 resistance (which is now a support). Let’s see if it can maintain this ascent.
Foreign Fund Flow
On a 30-day trading period, BRN is on a Net Foreign Selling worth PHP2,317,260.00.
Apparently, foreign investors are not having it. They are not impressed by BRN’s bullish price today.
Nonetheless, it’s an insignificant amount of Net Foreign Selling despite this long red bar you see below.
A P1.7 million Net Foreign Selling is a nickel relative to the historical foreign investors’ transactions.
Top 10 Players’ Sentiment – 30 April 2018
Participants with a 100% Buying and Selling Activity as of Apr-30-2018 at 03:30PM:
- 6 out of 78 participants or 7.69% of all participants registered a 100% BUYING activity
- 31 out of 78 participants or 39.74% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 1.1868
- Top 10 Players’ Selling Average: 1.1859
The psychological average price of the top 10 players as of Apr-30-2018 is between 1.1868 and 1.1859.
Top 10 Players’ Sentiment – April 2-30, 2018
Participants with a 100% Buying and Selling Activity from Apr-02-2018 to Apr-30-2018 at 03:30PM:
- 5 out of 89 participants or 5.62% of all participants registered a 100% BUYING activity
- 19 out of 89 participants or 21.35% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 1.1054
- Top 10 Players’ Selling Average: 1.1125
The psychological average price of the top 10 players from Apr-02-2018 to Apr-30-2018 is between 1.1054 and 1.1125.
Risk Level
Yes, BRN has an undervalued valuation based on the snippet of my fundamental analysis.
Yes, BRN is bullish based on my technical analysis.
Despite all that, consider that BRN is already a high-risk stock based on my risk level indicator.
Start with low- to moderate-risk stocks if you’re a beginner. Leave the high- to extremely high-risk stocks with the experienced traders for now.
Why Did I Invent the Top 10 Players Chart and Sentiment Generator?
I needed to know the psychological average price of the top 10 brokers who have traded a specific stock within a specific time period.
I needed to know the buying average of the top 10 brokers who have traded a specific stock within a specific time period.
I needed to know the selling average of the top 10 brokers who have traded a specific stock within a specific time period.
I wanted to know how many brokers, out of all the brokers who have traded a specific stock within a specific time period, registered a 100% buying activity.
I wanted to know how many brokers, out of all the brokers who have traded a specific stock within a specific time period, registered a 100% selling activity.
I am a creator. I am not fond of being content with the tools that have been made available even before I was born. At least, if it’s my own invention, I know to the tee what it can and cannot do.
I’ve created the Top 10 Players chart and sentiment generator as I solution to all the things that I need to know, like what I’ve mentioned above.
Brokers have the data. But I need information (processed data). I can’t wait until a broker creates what I need. So I created what I needed.
Today, I’d like to share with you one of the many proprietary pieces of information that our clients at Equilyst Analytics find useful.
The buying and selling averages of the top 10 brokers are a sneak preview of the range of their collective average price.
If I know the psychological average price of the top 10 brokers who have traded a stock, I can calculate in my mind how much more could a trader, with an x percentage of risk tolerance, afford to hold should the stock’s price go south.
My Overall Sentiment
I’m bullish based on fundamental analysis.
I’m bullish based on technical analysis.
If you’re just about to enter a new position, calculate your reward-to-risk ratio first. I advise this because you’ll be compelled to consider your risk tolerance and consider the stock’s support and resistance when you calculate your reward-to-risk ratio.
If your smile is ear to ear because you are also using my 10SMA-MACD strategy, congratulations! Just make sure you are using a trailing stop-loss and not just the plain-cut stop-loss.
Check it out: How to Set Up a Trailing Stop-Loss and Why You Must
Did You Find My Free Report Helpful?
Let me know in the comments. I love to read comments, especially those expressions of appreciation.
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