Nickel Asia Corporation (NIKL) made multiple announcements on August 29, 2018, through the material information and transactions report.
First, the company declared a cash dividend of Thirty Centavos (PHP 0.30) per common stock, with a record date of September 11, 2018, and payment date of September 27, 2018.
Second, it announced an 80 percent stock dividends, with a record date of October 23, 2018. These cuts will be dispensed from NIKL’s unissued capital stock and are still subject to stockholder’s approval.
Third, the board approved of the adjustments to grants under its 2014 Stock Option Plan and its 2018 Stock Option Plan. The goal is to factor in the stock dividend declaration.
The adjustment is also subject to stockholder’s approval.
Fourth, the board also approved the amendments made on the Corporation’s By-Laws. They include additional officers as well as modifications on the functions of corporate officers.
The last was the announcement of a special stockholder’s meeting to discuss the 2nd, 3rd, and 4th items above. It will be held on October 9, 2018, at 2 PM. The venue will be announced on a later date.
Nickel Asia Corporation’s 2018 Record
NIKL earned PHP 7.38 billion for the first half of 2018, a 6 percent decline from the recorded PHP 7.82 billion for the same period in 2017.
The value of the company’s shipment was weaker mainly due to low ore export prices as supply from Indonesia continued to increase.
NIKL sold an aggregate 8.89 million wet metric tons (WMT) of nickel ore sourced from four of its operating mines. This figure is slightly lower than the 8.92 WMT in 2017.
Net income totalled PHP 2.09 billion for the first half of 2018, a 5.17 percent drop from the PHP 2.20 billion recorded in the same period in 2017.
For a year, the stock appears to be correcting since June. The spot price is hovering around the USD 5,500 level.
However, in a 5-year period, it is clear that the trend broke over the short term 1-year period.
Meanwhile, on a medium-term period, the trend is still intact over a span of two years. The critical support line is somewhere around USD 5,000 per pound.
Technical Analysis
NIKL appears to have made a technical bounce. It is trading above the 61.8 percent Fibonacci retracement line spanning from the start of August 2018 to the peak at the end of the month.
Furthermore, the price is above the 50 SMA, which is now expected support. The 15 EMA and 20 SMA though may act as resistance.
Nonetheless, volume profile supports a bullish outlook. MACD is bearish but appears to be reversing.
On the other hand, RSI is reversing and is at neutral levels after hitting oversold levels. Estimated support is at 4.40 while expected resistance is at 4.95, which is also the 50 percent Fibonacci retracement line.
Volume
As of September 13, 2018, at 03:30 PM, the volume of NIKL is 59.80% 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
NIKL has a HIGH-RISK level due to its risk percentage of 84.21%.
Foreign Fund Flow
NIKL registered a Net Foreign Buying worth P454,700.00 as of September 13, 2018. On a 30-day trading period, NIKL is on a Net Foreign Buying worth PHP900.00.
Top 10 Players’ Sentiment
Trading participants of NIKL with a 100% Buying and Selling Activity as of Sep-13-2018 at 03:30 PM:
7 out of 30 participants or 23.33% of all participants registered a 100% BUYING activity
16 out of 30 participants or 53.33% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 4.6817
Top 10 Players’ Selling Average: 4.6465
The psychological average price of the top 10 players as of Sep-13-2018 is from 4.6465 to 4.6817.
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