San Miguel Food and Beverage Inc (FB) fell sharply today. Earlier in the day, the company declared a dividend of PHP 0.40 shareholders to common stockholders of the company.
The record date is October 22, 2018, and the payment date is October 31, 2018.
On October 5, 2018, FB disclosed that the Securities and Exchange Commission approved the registration of up to 1,020,050,000 shares with a par value of PHP 1.00. These shares will be used for the company’s planned follow-on offering.
The company already made the prospectus of their follow-on offering available on their website. The composition of the offer consists of 887,000,000 common shares with an over-allotment option of up to 133,050,000 common shares.
San Miguel Food and Beverage is yet to disclose the offer price but the estimated offer period to the public is between October 23 to 29, 2018.
Proceeds will go to the selling shareholder. FB will not receive any proceeds from this offer. The selling shareholders will use all of the proceeds for investments in the San Miguel Group.
The price dropped significantly today, possibly due existing stockholders’ fears of dilution. When the number of shares increase, and EPS may become lower which is not suitable for current investors.
As of June 30, 2018, the company generated a total of PHP 137.44 billion. This figure is higher by 15.37 percent than the recorded PHP 119.13 billion in the same period in 2017.
Moreover, the net income totaled PHP 15.37 billion, an increase of 20 percent versus the same period in 2017.
Technical Analysis
FB broke down immediate short-term support today. The price also fell below the 50 SMA, an expected resistance.
Furthermore, the 15 EMA and 20 SMA are poised for a bearish crossover with the 50 SMA. Volume on the red candles is enormous, confirming a bearish bias.
MACD is bearish. RSI is bearish. The stock also fell below the golden ratio Fibonacci retracement line (61.8 percent) at price 89.22.
Meanwhile, estimated support is at 83.17 while expected resistance is at 92.75.
Volume
As of October 9, 2018, at 03:30PM, the volume of FB is 424.47% 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
FB has a LOW-RISK level due to its risk percentage of 36.89%.
Foreign Fund Flow
FB registered a Net Foreign Selling worth P5,904,254.00 as of October 09, 2018. On a 30-day trading period, FB is on a Net Foreign Selling worth PHP251,196,159.00.
Top 10 Players’ Sentiment
Trading participants of FB with a 100% Buying and Selling Activity as of Oct-09-2018 at 03:30 PM:
26 out of 60 participants or 43.33% of all participants registered a 100% BUYING activity
9 out of 60 participants or 15.00% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 88.3821
Top 10 Players’ Selling Average: 88.6330
The psychological average price of the top 10 players as of Oct-09-2018 at 03:30 PM is from 88.3821 to 88.6330.
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