SPC Power Corporation (SPC) was incorporated on March 11, 1994, as Salcon Power Corporation.
The company ventured with the National Power Corporation (NPC). It was engaged in the rehabilitation, operation, maintenance, and management (ROMM) of a power plant complex in Cebu.
On January 4, 2017, it changed its primary purpose into the business of selling, marketing, and brokering or aggregating of electricity to end users.
Market Cap: PHP 7.93 billion
Sector: Industrial
Subsector: Electricity, Energy, Power & Water
Earnings Highlights:
- Revenues declined by 19.52 percent to PHP 2.35 billion in 2017 versus 2016
- The company earned a net income attributable to parent of PHP 1.64 billion last 2017
Subsidiaries:
- SPC Island Power Corporation
- Cebu Naga Power Corporation
- SPC Malaya Power Corporation
- Bohol Light Company, Inc.
- SPC Light Company, Inc.
- SPC Electric Company, Inc.
The Company’s associates are Mactan Electric Company, Inc. and KEPCO SPC Power Corporation.
SPC replied to the inquiry regarding the decision of the Supreme Court in the case of Osmena vs. PSALM et al. The ruling declared the Asset Purchase Agreement and Land Lease Agreement covering the Naga Power Plant Complex null and void.
Apparently, the agreement was entered into by SPC and PSALM on July 13, 2018, of which a Joint Turnover Certificate was executed. SPC turned over the Naga Power Plant to PSALM. In return, PSALM handed over the bid of SPC.
Consequently, the exchange wanted to know how this decision will affect the business, operations, and financial conditions of SPC.
SPC reiterated that before the turnover, only the Cebu Diesel Power Plant with a total capacity of 33 Megawatts was operational. The effect of the turnover will be revenue losses.
However, the company is confident that it will recover once the rehabilitation of Power Barge 104 (PB 104) is completed. It is tapped to be fully operational during the second half of the year.
PB 104 was acquired by the company from PSALM in 2016. It has a total dependable capacity of 26 Megawatts. PB 104 has been declared commercially operational on July 18, 2018.
The company is now keen on seeking other power project opportunities. Moreover, new hydropower plant projects are being considered in Luzon and Visayas.
For the first quarter of 2018, SPC saw a 7.3 percent decline in total comprehensive income at PHP 495.10 million. This is in comparison with the recorded PHP 534 million in the same period in 2017.
The decline was attributed mainly to the following:
- Major maintenance of a 100 MW power plant of the company
- Lower margins in the electricity business, which was due to the combined effect of lower market price, temporary under-recovery of pass-through costs of fuel, and purchased power due to the timing difference
- Operating costs pending application for recovery under true-up mechanisms implemented by the Energy Regulatory Commission (ERC)
- Expiration of the February 20, 2017 income tax holiday previously granted to a major associate.
SPC has recovered its previous trading range after falling below it last June. The short-term, medium-term, and long-term moving averages are intertwined.
The sideways movement suggests consolidation. Volume is weak, also in support of the consolidation. MACD turned bullish but is currently at neutral levels.
RSI is also moving sideways. Support of the range is at 5.20 followed by 4.77. Resistance is expected at 5.48.
Volume
As of July 19, 2018, at 03:30 PM, the volume of SPC is 100.90% 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
SPC has a LOW-RISK level due to its risk percentage of 23.07%.
Foreign Fund Flow
SPC registered a Net Foreign Buying worth P37,100.00 as of July 19, 2018.
On a 30-day trading period, SPC is on a Net Foreign Buying worth PHP814,243.00.
Top 10 Players’ Sentiment
Trading participants of SPC with a 100% Buying and Selling Activity as of Jul-19-2018 at 03:30 PM:
2 out of 5 participants or 40.00% of all participants registered a 100% BUYING activity
1 out of 5 participants or 20.00% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 5.3147
Top 10 Players’ Selling Average: 5.3313
The psychological average price of the top 10 players as of Jul-19-2018 is from 5.3147 to 5.3313.
What Is the Importance of Knowing the Top 10 Players’ Sentiment?
You need to know the psychological average price of the top 10 brokers who have traded a specific stock within a specific time period.
You need to know the buying average of the top 10 brokers who have traded a specific stock within a specific time period.
You need to know the selling average of the top 10 brokers who have traded a specific stock within a specific time period.
You need to know how many brokers, out of all the brokers who have traded a specific stock within a specific time period, registered a 100% buying activity.
You need to know how many brokers, out of all the brokers who have traded a specific stock within a specific time period, registered a 100% selling activity.
The buying and selling averages of the top 10 brokers are a sneak preview of the range of their collective average price.
If you know the psychological average price of the top 10 brokers who have traded a stock, you can calculate in your mind how much more can they probably afford to hold, relative to their collective risk tolerance, should the stock’s price go south.
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Read this article if you want to become a better investor, too.
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