Globe Telecom Inc. (GLO) recorded consolidated revenues of PHP 68.30 billion for the first six months of the year, an 8.58 percent growth versus the recorded PHP 62.9 billion from the same comparable period a year ago.
This was mainly due to substantial increase across all segments as consumers utilize higher data usage.
Globe Telecom Revenues Up Close
Mobile service revenues cornered bulk or 77 percent of total consolidated revenues at PHP 57.3 billion, a 9 percent increase versus the recorded PHP 52.6 billion a year ago.
Most of its revenues came from mobile data which grew by 26 percent but was partly offset by a 4 percent decline in the traditional voice and SMS services.
Home broadband and fixed-line business also drew significant revenues at 15.70 billion, a 7 percent increase versus the recorded PHP 14.6 billion in the same comparable period a year ago. This also accounts for 23 percent of total consolidated revenues. The growth in this segment was boosted by higher sales from both home broadband segments as well as corporate data segments.
Mobile and non-service revenues rose by 47 percent and 61 percent respectively year on year. Fixed-line and broadband services booked revenues of PHP 96 million, a 4 percent decline versus the recorded PHP 93 million in the same period last year. Mobile nonservice revenues also declined by 5 percent.
Net income of the company totaled PHP 10.133 billion for the first six months of the year. This is a huge jump (25 percent growth) from the recorded PHP 8.09 billion a year ago. This was mainly driven by an increase in revenues as mentioned above.
The stock is currently trading at a Price to Earnings Ratio (P/E) of 16.91x. This is lower than the industry average of 21.4x but is a little bit higher than the PSE Index which is trading at around 15.0x.
Price to Book value is at 5.18x, also below the industry average of 10.16x making the stock undervalued in both metrics.
Red Candles Aglow
GLO dropped further today after it broke its initial trend. The price initially went below the 15 EMA and 20 SMA.
Today, the stock broke the 50 SMA with a strong bearish candle. All three moving averages are now expected resistance. It also broke another support line at around 2027.
Volume on the red candles is also picking up confirming the bearish theme. MACD is bearish as well as RSI which is approaching oversold levels.
Price has also broken the 38.2 percent Fibonacci retracement line and is approaching the 50 percent line.
Support is estimated at 1878.64 followed by 1769.88 while resistance is expected at 2151 followed by 2233.
Volume
As of October 15, 2018, at 03:30 PM, the volume of GLO is 66.88% 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
GLO has a MODERATE RISK level due to its risk percentage of 50.75%.
Foreign Fund Flow
GLO registered a Net Foreign Selling worth P73,123,160.00 as of October 15, 2018. On a 30-day trading period, GLO is on a Net Foreign Buying worth PHP1,954,717,420.00.
Top 10 Players’ Sentiment
Trading participants of GLO with a 100% Buying and Selling Activity as of Oct-15-2018 at 03:30 PM:
16 out of 40 participants or 40.00% of all participants registered a 100% BUYING activity
4 out of 40 participants or 10.00% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 2020.0316
Top 10 Players’ Selling Average: 2020.2082
The psychological average price of the top 10 players as of Oct-15-2018 at 03:30 PM is from 2020.0316 to 2020.2082.
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