H2O was incorporated initially as Calapan Equity Ventures Inc, an investment holding company. In 2009, the SEC approved the amendment to its Articles of Incorporation to change its name and change its primary purpose to a trading business.
The company currently conducts water business activities through its subsidiaries.
Market Cap.: P1.59B
Subsidiaries:
- Calapan Waterworks Corporation
- Metro Agoo Waterworks Inc.
- Nation Water Corporation (39.87 percent share)
Sector: Industrial
Subsector: Electricity, Energy, Power, and Water
Earnings Highlights:
- Revenues grew by 5.46 percent in the year 2017 versus 2016 at PHP 235 million.
- Net Income for the year ended December 2017 reached PHP 37.49 million.
H2O had a net income of PHP 37.49 million for the year ended December 31, 2017. This is a 4.87 percent growth versus the recorded PHP 35.75 million in the same period last year.
EPS continues to remain flat at 0.15 per share. Net profit margin is at 15.94 percent. The company has a dividend yield of 1.5 percent and a return on equity of 22.81 percent.
For the first quarter of the year, the company already earned PHP 9.32 million, a 22.80 percent growth versus the PHP 7.59 billion recorded in the same period in 2017. Net profit margin stood at 15.12 percent.
Its Price-to-Earnings ratio of 42.24, versus the Industrial sector’s 10.55, makes it overvalued. Its Price-to-Sales ratio of 7.11, versus the Industrial sector’s 3.33, makes it overvalued as well.
The Price-to-Book value of 3.30, versus the Industrial industry’s 1.47, confirms the overvaluation.
On June 28, 2018, H2O filed its comprehensive corporate disclosure on a backdoor listing. It informed the exchange that its stockholders and Board of Directors approved the increase in authorized capital stock from Php 500,000,000.00 (consisting of 500,000,000 common shares with a par value of Php1.00 each) to Php8,000,000,000 (composed of 8,000,000,000 common shares with a par value of Php1.00.)
Moreover, H2O and Udenna Corporation executed a deed of assignment, to which the latter agreed to transfer all of its shares in PH Travel and Leisure Corp (PH Travel). This in exchange for 4,143,648,309 shares in H2O and additional cash for the total acquisition price of PHP 4.55 billion.
The exchange suspended H2O shares on June 26, 2018. The suspension was lifted three days ago.
When H2O resumed trading, the stock gapped up but was unable to sustain the rally. It even closed below its opening price at the end of trading.
The price has been dropping for the past four days as well. The price, however, is still above all moving averages.
The 200 SMA may still provide support for the stock. Volume on the red candles is not that huge as well. MACD is still bullish but appears to start reversing.
RSI is bearish but at neutral levels. Support is estimated at 6.22 followed by 5.78 while resistance is expected at 6.81 followed by 7.47.
Volume
As of July 6, 2018, at 03:30PM, the volume of H2O is 84.37% 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
H2O has a HIGH RISK level due to its risk percentage of 89.10%.
Foreign Fund Flow
H2O registered a Net Foreign Buying worth P64,100.00 as of July 06, 2018. On a 30-day trading period, H2O is on a Net Foreign Buying worth PHP2,621,871.00.
Top 10 Players’ Sentiment
Trading participants of H2O with a 100% Buying and Selling Activity from Jun-01-2018 to Jul-06-2018 at 03:30PM:
- 6 out of 81 participants or 7.41% of all participants registered a 100% BUYING activity
- 10 out of 81 participants or 12.35% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 7.0785
- Top 10 Players’ Selling Average: 7.1306
The psychological average price of the top 10 players from Jun-01-2018 to Jul-06-2018 is from 7.0785 to 7.1306.
What Is the Importance of Knowing the Top 10 Players’ Sentiment?
You need to know the psychological average price of the top 10 brokers who have traded a specific stock within a specific time period.
You need to know the buying average of the top 10 brokers who have traded a specific stock within a specific time period.
You need to know the selling average of the top 10 brokers who have traded a specific stock within a specific time period.
You need 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.
You need 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.
The buying and selling averages of the top 10 brokers are a sneak preview of the range of their collective average price.
If you know the psychological average price of the top 10 brokers who have traded a stock, you can calculate in your mind how much more can they probably afford to hold, relative to their collective risk tolerance, should the stock’s price go south.
This is how we mentor our clients who subscribe to our Top Stock Picks.
Not only do we tell them which stocks to buy and when to sell, but we also update them every day about what happened to each stock that we recommend.
We save our customers a lot of time and heartache.
We show them our data-driven basis so they know what we know.
Our customers are not blind-followers but well-informed investors.
Our customers are better investors than most.
When you ask our customers why they buy the stocks that we recommend, you better get your pen and paper handy.
They will not answer, “Because I was told to buy it.”
They will narrate our data-driven basis like how we narrated the summary of our analysis in this article.
At Equilyst Analytics, our customers learn and earn.
Read this article if you want to become a better investor, too.
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