Bloomberry Resorts Corporation (BLOOM) is one of the notable gainers and a part of the top 10 most actively traded stocks today.
On September 13, 2018, BLOOM announced that the Board of Directors of Bloomberry Resorts & Hotels, Inc. (BRHI) would purchase up to one million five hundred thousand shares (1,500,000) through the stock market at the current price.
In turn, the shares would be given to the loyal patrons of Solaire as rewards.
Bloomberry Resorts to Buy Back Shares for SIP
The company is also busy buying back shares from the open market. The purpose of the buyback program is to accumulate enough shares for the company’s Stock Incentive Plan (SIP) for employees and officers that will invest in the future.
Moreover, the maximum number of shares appropriated for the buyback is at 51.50 million. The total cumulative number of shares purchased to date is already at 37,635,892.
Current outstanding shares of the company totalled 11 billion common shares.
What are buybacks? It is an activity of the company to either:
- Attempt to halt the decline of its stock by being the buyer for the sellers. It may signal the bears that the management is already seeing value in its own company, thus making them think twice about selling; or
- Increase shareholder value by decreasing the size of the entire pie.
Let’s discuss the second definition. The increase in shareholder value is achieved by improving EPS. How? EPS is computed as Net Income/Number of Outstanding Shares.
For instance, If there is a net income of PHP 1,000,000 and there are 100 shares, it will show as PHP 1M/100 or 10,000 per share.
However, if the company starts buying back and it was able to buy back even just 20 shares, EPS will show as PHP 1M/(100-20) or 12,500.
As an investor, what would you prefer to receive? PHP 10,000 or PHP 12,500? Of course, you would prefer the higher amount.
Additionally, the fact holds true for dividends. The lesser people splitting the pie, the bigger the share of each will be. That is how shareholder value is improved.
Revenues at a Glance
For the six months ended June 30, 2018, the company generated revenues of PHP 22.13 billion. It is 19.90 percent higher than the recorded PHP 18.46 billion in the same period last year.
Net income stood at PHP 5.30 billion, a 29 percent improvement from the PHP 4.11 billion from the same period a year ago. Remember that years ago, BLOOM was losing money and its return to profitability only started a few years back.
Moreover, EPS was better at 0.484, up 29.70 percent from the 0.373 in 2017.
Technical Analysis
BLOOM spiked up today and climbed above the 15 EMA. However, the 20 SMA put a halt in the climb. The moving averages are bearishly aligned.
Furthermore, MACD is poised for a bullish crossover. RSI turned bullish and is currently at neutral levels. Estimated support is at 8.33 followed by 8.02. Expected resistance is at 9.03 followed by 9.54.
Volume
As of September 25, 2018, at 12:00 PM, the volume of BLOOM is 69.18% of the previous trading day. This stock’s latest volume is still below 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
BLOOM has a MODERATE-RISK level due to its risk percentage of 51.03%.
Foreign Fund Flow
BLOOM registered a Net Foreign Buying worth P5,522,328.00 as of September 25, 2018. On a 30-day trading period, BLOOM is on a Net Foreign Selling worth PHP771,899,927.00.
Top 10 Players’ Sentiment
Trading participants of BLOOM with a 100% Buying and Selling Activity as of Sep-25-2018 at 12:00 PM:
9 out of 70 participants or 12.86% of all participants registered a 100% BUYING activity
38 out of 70 participants or 54.29% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 8.6674
Top 10 Players’ Selling Average: 8.7258
The psychological average price of the top 10 players as of Sep-25-2018 at 12:00 PM is from 8.6674 to 8.7258.
- Key Prices for PH Bluechip Stocks 30% Above 52-Week Low - June 4, 2024
- May 2024 Market Sentiment Rating of 30 PH Bluechip Stocks - June 3, 2024
- EquiTalks: ICT, BPI, AEV Updates – 5.29.2024 - May 29, 2024
