Alliance Select Foods International, Inc. (FOOD) just released its financial performance for the first half of the year.
Net sales totaled to USD 47.50 million, which is higher by 37 percent versus the same period last year. Management attributes the growth to its implementation of several sourcing strategies.
The improved relationship with stakeholders helped in the company’s sales growth as it allowed to offer more value to its customers at sustained prices.
Furthermore, revenues from its tuna and salmon segments, which grew by 58 percent, contributed to generating the higher incomes.
Net Income Soars
FOOD recorded a net income of USD 2.32 million. This figure is higher by 625 percent versus the marked USD 320,000 in the same period last year.
Moreover, the current net income encompasses the reported net income for the whole of 2017 at USD 1.44 million — higher by 61.11 percent.
Better revenues generated by the company also contributed to the soaring net income.
Profitability Ratios Are Noteworthy
FOOD’s Return on Equity (ROE) stood at 5.50 percent. This figure is actually higher than the 0.00 percent recorded in 2017.
From a financial standpoint, however, a 5.5 percent ROE is low and considered below the inflation rate. Preferably, ROEs should hit double-digit figures.
The good news is that the net profit margin continues to improve from 0.80 percent to 4.60 percent. Revenue growth is also stellar at 36.80 percent versus 10.20 percent. It suggests that the company is growing faster this year.
Fair Financial Position
The company shows a current improving ratio as it rises from 0.92 to 0.99. This figure means that the company has a one-to-one ratio between current assets and liabilities.
To simplify, the company can service and pay its short-term maturing obligations. Debt to equity ratio, however, is more than 1.00 suggesting that the company has more debt than equity.
Technical Analysis
The stock closed higher versus the opening price for today but is still lower than the closing price yesterday.
We have a very long wick today — suggesting that a lot of people got stuck inside the price range of PHP 1.00 to PHP 1.17. Volume was also colossal, which closed to more than twice the amount yesterday.
From this, the stock could have a tough time trying to retest resistance at 1.17. It will be every man for himself to exit fast when it reaches that level.
The good thing is that the 15 EMA and 20 SMA are still acting as support. In fact, the moving averages are bullishly aligned.
Do note, however, that these are lagging indicators. They are slower than the actual price. MACD is still bullish. RSI is correcting after hitting overbought levels.
The stock is finding support at the 50 percent Fibonacci retracement level. Meanwhile, resistance can be seen at the 38.2 percent Fibonacci retracement level. Support is estimated at 0.81 while resistance is expected at 1.05.
Volume
As of August 15, 2018, at 03:30 PM, the volume of FOOD is 275.69% 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
FOOD has an EXTREMELY HIGH-RISK level due to its risk percentage of 154.33%.
Foreign Fund Flow
FOOD registered a Net Foreign Selling worth P785,780.00 as of August 15, 2018.
On a 30-day trading period, FOOD is on a Net Foreign Selling worth PHP3,049,770.00.
Top 10 Players’ Sentiment
Trading participants of FOOD with a 100% Buying and Selling Activity as of Aug-15-2018 at 03:30 PM:
7 out of 67 participants or 10.45% of all participants registered a 100% BUYING activity
7 out of 67 participants or 10.45% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 1.0677
Top 10 Players’ Selling Average: 1.0545
The psychological average price of the top 10 players as of Aug-15-2018 is from 1.0545 to 1.0545.
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