NOW Corporation, formerly known as Capital Technology Ventures Inc., was incorporated in 1996 as MF Schroder & Co., Inc. Primarily, the company engaged in buying and selling of securities.
On August 26, 2013, the company changed its corporate name to the present one with the permission of the Securities and Exchange Commission.
Currently, the company is in the business of telecommunications, media, and technology.
Market Cap: PHP 12.75 billion
Sector: Services
Subsector: Information Technology
Earnings Highlights:
- The company saw a spike in revenues to PHP 148.97 million in 2017, higher by 42 percent versus 2016.
- The company booked a net income attributable to parent of PHP 6.97 million last 2017.
Revenues Register Double-Digit Growth
Earlier today, NOW released its financial statements for the first half and second quarter of the year.
Gross revenues for the first half of the year reached to PHP 87.38 million. This figure is higher by 29 percent versus the same period last year at PHP 68.10 million.
Increase in Service Revenue and Sales of both Software Licenses and Services, amounting to PHP 12.975 million and PHP 6.284 million, drove the double-digit growth.
The latter is the combined result of more IBM licenses sold as well as the recognition of revenues from services performed for the Supreme Court of the Philippines.
Net Income More Than Doubles
Furthermore, the company recorded a net income of PHP 5.82 million for the first half of the year. This amount is 158 percent higher than the recorded PHP 2.26 million in the same measurement period last year.
Profitability Ratios Remain Low
NOW’s Return on Equity, a measure of profitability towards common stockholders, stood at 0.43 percent. Actually, it is higher than the 0.17 percent recorded in 2017.
However, a 0.43 percent ROE is still pretty low and risky from a financial standpoint. Should the company undergo any untoward financial distress, it will not have enough buffer funds to cushion the crisis.
Fair Financial Position
At present, NOW’s assets is at PHP 1.766 billion, liabilities at only PHP 404.091 million, and equity at PHP 1.362 billion. As it stands, the level of debt in proportion to assets and capital is still quite minimal.
As such, the company is not facing any risk of insolvency and would probably be in an excellent position to assume more debt in the future for any expansion and investment endeavors.
Nonetheless, NOW Corporation is still struggling to establish an uptrend as it tests 3-month lows. Volume is still thin in support of a consolidation pattern.
On the other hand, the short-term and medium-term moving averages act as resistance for the stock. MACD moves sideways. RSI is bearish and is nearing oversold levels.
8.26 is the estimated support while 9.07 is the expected resistance.
Volume
As of August 14, 2018, at 03:30 PM, the volume of NOW is 142.13% 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
NOW has a LOW-RISK level due to its risk percentage of 37.95%.
Foreign Fund Flow
NOW registered a Net Foreign Selling worth P191,077.00 as of August 14, 2018.
On a 30-day trading period, NOW is on a Net Foreign Buying worth PHP6,581,407.00.
Top 10 Players’ Sentiment
Trading participants of NOW with a 100% Buying and Selling Activity as of Aug-14-2018 at 03:30 PM:
10 out of 44 participants or 22.73% of all participants registered a 100% BUYING activity
8 out of 44 participants or 18.18% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 8.5598
Top 10 Players’ Selling Average: 8.5849
The psychological average price of the top 10 players as of Aug-14-2018 is from 8.5598 to 8.5849.
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