Alliance Global Group, Inc. (AGI) made a press release today stating its allocation of up to PHP 240 billion as capital expenditure (CAPEX) until 2020.
This CAPEX will help launch more development projects that aim to increase its leasing capacity in its lifestyle malls and office buildings investments. It will also be used to expand the company’s land bank as well as hotel and integrated resorts operations.
The company also aims to increase the number of McDonald’s stores nationwide.
For the past ten years, the company has already spent around PHP 470 billion in CAPEX of which 80 percent was spent in the past five years.
Over the same period, Megaworld Corp (MEG), the company’s property arm, launched around PHP 200 billion worth of residential projects. These plans added up to 800,000 square meters in gross leasable area.
Alliance Global Acquisitions
AGI also acquired Scotland-based Whyte and Mackay (2014), Bodegas Fundador of Spain (2016), and the Pedro Domecq brands of Mexico (2017) through its subsidiary Emperador Inc.
Meanwhile, Golden Acres Development Corporation opened 200 McDonald stores in the past five years.
Its hotel and resorts arm, Travellers International Hotel Group Inc., launched the RWM Phase 2 and opened the Mariott Hotel West Wing and the Mariott Grand Ballroom.
AGI also pursues Phase 3 that will have foreign brands such as Hilton, Sheraton, and Okura, as well as the Grand Wing casino.
World-Class Public Transport System in the Works
Additionally, Alliance Global has opened up a new subsidiary, the Infracorp Development Inc. It will mainly operate rail infrastructure projects that will provide the government with a world-class public transport system.
The project aims to make travelling around Metro Manila become efficient. The company is set to start the construction of the 2-kilometre Sky Train monorail system connecting Taguig and Metro Manila.
AGI is also busy buying back its own shares in a bid to improve shareholder value. The company appropriated a total of PHP 5 billion for its buy-back program.
Out of the total budget, the company already spent PHP 2.91 billion on the buyback or 208,019,000 shares.
Alliance Global had total revenues of PHP 70.07 billion for the first half of the year. This figure is 7.70 percent higher than the recorded PHP 65 billion in the same period in 2017.
Net income attributable to parent totalled to PHP 7.86 billion, a 16.92 percent increase. In the same period in 2017, AGI recorded PHP 6.72 billion.
Ceased to Fall
The stock appears to have stopped its downtrend after dropping for almost two weeks. The 15 EMA and 20 SMA are expected to act as resistance while the 50 SMA served as support.
Volume profile though has not confirmed the downtrend; thus, this may be a chance to scale into the stock. MACD is still bearish. RSI is at neutral levels.
Estimated support is at 12.45 followed by 12.17 while expected resistance is at 12.86.
Volume
As of September 18, 2018, at 03:30 PM, the volume of AGI is 69.54% 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
AGI has a LOW-RISK level due to its risk percentage of 40.00%.
Foreign Fund Flow
AGI registered a Net Foreign Buying worth P817,728.00 as of September 18, 2018. On a 30-day trading period, AGI is on a Net Foreign Selling worth PHP304,669,752.00.
Top 10 Players’ Sentiment
Trading participants of AGI with a 100% Buying and Selling Activity as of Sep-18-2018 at 03:30 PM:
9 out of 32 participants or 28.13% of all participants registered a 100% BUYING activity
9 out of 32 participants or 28.13% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 12.4648
Top 10 Players’ Selling Average: 12.4670
The psychological average price of the top 10 players as of Sep-18-2018 is from 12.4648 to 12.4670.
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