Philippine H2O Ventures Corporation (H2O) made some clarifications today to the exchange after manilastandard.net’s news article came out. The news stated in its headlines that Dennis Uy is set to raise PHP 1.48 billion from a share sale to fund casinos.
In the said article, it stated that H2O would soon be known as PH Resorts Group Holdings Inc. From there, the new company will sell up to 2.054 billion of common shares with a price of PHP 9 per share.
Of the total shares for sale, 1.78 billion is for the primary offering. The company will also have an over-allotment of 267.94 million shares.
The PHP 9 offer price is still higher by 39.50 percent from today’s closing price of PHP 6.45 a piece. The underwriter for the follow-on offering is China Banking Corp. and CLSA Ltd.
After the sale share, it would allow H2O to meet the required 10 percent public float to remain listed in the exchange.
Casino in Mactan
Davao Tycoon Dennis Uy cooks up a casino project in Lapu-Lapu Leisure Mactan worth USD 300 million. His company is also finalizing plans to build a casino in Clark Global City to cover an area of 177 hectares.
In response to the news, H2O pointed to a previous disclosure stating that the company indeed plans to inject assets in the casino project. The asset injection, however, is not complete and is not yet owned by H2O.
Updates on the Follow-on Offering (FOO)
Though the company has already filed it, SEC is yet to approve the follow-on. Should the offering push through, the company estimates around PHP 18.48 billion in capital.
The company also considers abandoning or pursuing other methods of capital raising should the request be against their favor.
For the first half of the year, H2O did not register any revenues as what also happened in the first half of 2017.
Nonetheless, the company generated PHP 23 million for the first half. This figure is better by around 500 percent versus the registered net loss of PHP 1.32 million in 2017.
One-Time Gain Improved Bottom Figure
Despite having no revenues, the company generated positive net income. It came from a one-time gain from the sale of its subsidiary, Tubig Pilipinas Corp (formerly known as Tabuk Water Corp). This incline netted a profit of PHP 16.30 million.
So far, the company kept its retained earnings positive at PHP 214.79 million as of June 30, 2018. Stockholder’s equity is also positive at PHP 516.11 million.
Technical Analysis
H2O spiked up today and made a proper close. The stock did not only breach the 50 SMA but made it its day-support.
The 15 EMA and 20 SMA are poised for a bullish crossover with the 50 SMA. Volume supported the rally.
Actually, the volume profile is bullish. MACD is bullish. RSI is also bullish but has hit overbought levels.
Estimated support is at 6.32 followed by 5.80. Expected resistance is at 6.82.
Volume
As of September 3, 2018, at 03:30 PM, the volume of H2O is 7,910.03% 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
H2O has a HIGH-RISK level due to its risk percentage of 98.23%.
Foreign Fund Flow
H2O registered a Net Foreign Buying worth P361,502.00 as of September 03, 2018.
On a 30-day trading period, H2O is on a Net Foreign Buying worth PHP478,277.00.
Top 10 Players’ Sentiment
Trading participants of H2O with a 100% Buying and Selling Activity as of Sep-03-2018 at 03:30 PM:
5 out of 60 participants or 8.33% of all participants registered a 100% BUYING activity
14 out of 60 participants or 23.33% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 6.1918
Top 10 Players’ Selling Average: 6.1760
The psychological average price of the top 10 players as of Sep-03-2018 is from 6.1760 to 6.1760.
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