Roxas and Company, Inc. (RCI) retraced and tested support today after breaking above resistance. On September 10, 2018, RCI made some announcements.
First, it amended its Articles of Incorporation to increase its authorized capital stock from 3.375 billion shares to 4.375 billion shares. It is to create preferred shares amounting to PHP 1 billion with a par value of PHP 1.00.
Second, the preferred shares will have the following characteristics:
- non-voting
- non-convertible
- redeemable with preference over dividend payments
- re-issuable when fully redeemed
The third is the conversion of a short-term loan with China bank to a seven-year term loan and to act as co-maker/co-obligor of Roxaco Land Corporation for a seven-year loan.
Lastly, the company announced the issuance of a corporate guarantee for the PHP 250 million loans. This is to pledge its treasury shares as security for the credit under such terms and conditions that may be beneficial to the corporation.
Roxas and Company Revenues and Expenses
Consolidated revenues for the first half of the year totalled to PHP 277.40 million. This amount is 18 percent greater than the recorded PHP 234.90 million.
The increase was mainly due to additional revenues from GoHotels, Anya Hotel, and export revenues from the recently commissioned RSAI coconut processing plant.
Moreover, operating expenses were also higher, reaching PHP 267.80 million. This amount is 51 percent higher than last year’s PHP 177.20 million.
The expenses were due to new businesses for sales and marketing. Utilities, salaries, depreciation, and provisions for inventory write-down amounted to PHP 41.20 million.
The company suffered a consolidated net loss of PHP 203.50 million for the first six months of the first six months of the year. This figure is almost four-folds the recorded net loss in the first half of 2017, totalling to PHP 50.1 million.
As of June 30, 2018, consolidated total assets totalled PHP 12.30 billion. This amount is higher than the PHP 12.27 billion on December 31, 2017.
It was mainly due to higher inventories from RSAI’s start-up operations as well as higher receivables from realty sales and hotel revenues. The current ratio is slightly lower at 47 percent versus the 49 percent recorded on December 31, 2017.
Furthermore, book value per share stood at PHP 3.61. Current price is at PHP 2.68, which means that the stock is actually trading below book value. This amount gives investors some safety net.
RCI also has a dividend payout ratio of 1.43 percent and a dividend yield of 0.77 percent.
Technical Analysis
RCI corrected sharply today after having broken resistance yesterday. However, the moving averages aligned bullishly.
The 15 EMA acted as support today. Volume profile still supports a bullish outlook. MACD is already bullishly aligned.
Currently, RSI is at neutral levels. Estimated support is at 2.56 while expected resistance is at 2.79.
Volume
As of September 28, 2018, at 03:30 PM, the volume of RCI is 64.36% of the previous trading day. This stock’s latest volume is already above 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
RCI has a MODERATE-RISK level due to its risk percentage of 64.17%.
Foreign Fund Flow
RCI registered a Net Foreign Buying worth P106,800.00 as of September 28, 2018. On a 30-day trading period, RCI is on a Net Foreign Buying worth PHP72,819.00.
Top 10 Players’ Sentiment – September 28, 2018
Trading participants of RCI with a 100% Buying and Selling Activity as of Sep-28-2018 at 03:30 PM:
4 out of 21 participants or 19.05% of all participants registered a 100% BUYING activity
3 out of 21 participants or 14.29% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 2.7331
Top 10 Players’ Selling Average: 2.7478
The psychological average price of the top 10 players as of Sep-28-2018 at 03:30 PM is from 2.7331 to 2.7478.
Top 10 Players’ Sentiment – September 24-28, 2018
Trading participants of RCI with a 100% Buying and Selling Activity from Sep-24-2018 to Sep-28-2018 at 03:30 PM:
3 out of 30 participants or 10.00% of all participants registered a 100% BUYING activity
7 out of 30 participants or 23.33% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 2.8086
Top 10 Players’ Selling Average: 2.7889
The psychological average price of the top 10 players from Sep-24-2018 to Sep-28-2018 is from 2.7889 to 2.8086.
Top 10 Players’ Sentiment – September 3-28, 2018
Trading participants of RCI with a 100% Buying and Selling Activity from Sep-03-2018 to Sep-28-2018 at 03:30 PM:
3 out of 38 participants or 7.89% of all participants registered a 100% BUYING activity
10 out of 38 participants or 26.32% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 2.7691
Top 10 Players’ Selling Average: 2.7288
The psychological average price of the top 10 players from Sep-03-2018 to Sep-28-2018 is from 2.7288 to 2.7691.
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