STI Education Systems Holdings, Inc. (STI): Buying Into the Start of a Bull Run?

STI Education Systems Holdings, Inc. (STI) announced on August 16, 2018, that it already reached PHP 15.90 billion worth of assets as of the first half of 2018. This figure is PHP 1.50 billion higher than its asset balance in the first quarter of the year.

The growth was mainly due to an increase in accounts receivables for tuition and other school fees. The increase in capital expansion for construction projects, now in full swing, is also a factor.

Some of its new sites include areas such as Lipa, Batangas, Pasay-EDSA, San Jose Delmonte Bulacan, and Sta. Mesa Manila. Its subsidiary, iACADEMY also opened iACADEMY Nexus in Yakal Makati in February.

Currently, the group has a total portfolio of 75 schools — 38 of which are company-owned while 37 are franchised schools. Out of the total, 65 are colleges while 10 are education centers.

As of the first half of the year, it has a total of 84,229 students enrolled. The Commission on Higher Education enrolled 41,619 of them. The remaining 49,891 are under the Department of Education.

For the quarter ended June 30, 2018, STI generated revenues of PHP 460.30 million. This figure is a six percent decline versus last year’s 488.10 million.

Nonetheless, STI Education Systems suffered a net loss of PHP 80.10 million for the quarter. This amount is slightly lower from PHP 216.90 million versus the same period last year. It was because of the company’s share in net loss from an associate.

Technical Analysis

STI spiked up today and broke two resistance points which are support levels. It also pushed above the 15 EMA and 20 SMA, which is a bullish signal.

Meanwhile, the 15 EMA and 20 SMA are reversing towards a bullish bias. Volume also supported the rally. MACD made a bullish crossover.

Additionally, RSI is also bullish but is not yet at overbought levels. Estimated support is at 0.84 followed by 0.76. Expected resistance is at 0.92 and 1.00.

Volume

As of September 24, 2018, at 12:00 PM, the volume of STI is 566.40% 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

STI has an EXTREMELY HIGH-RISK level due to its risk percentage of 140.54%.

Foreign Fund Flow

STI registered a Net Foreign Buying worth P9,015,670.00 as of September 24, 2018. On a 30-day trading period, STI is on a Net Foreign Selling worth PHP3,413,579.00.

Top 10 Players’ Sentiment

Trading participants of STI with a 100% Buying and Selling Activity as of Sep-24-2018 at 12:00 PM:

9 out of 56 participants or 16.07% of all participants registered a 100% BUYING activity
17 out of 56 participants or 30.36% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 0.8049
Top 10 Players’ Selling Average: 0.8210

The psychological average price of the top 10 players as of Sep-24-2018 at 12:00 PM is from 0.8049 to 0.8210.

Author
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Jaycee De Guzman

Founder and CEO at Equilyst Analytics

Experience the expertise of Jaycee De Guzman, the brain of Equilyst Analytics, renowned for his unique data analysis. He is a computer scientist and a self-taught digital marketing strategist and agriculturist. Since Equilyst Analytics’ founding in 2012, over 10,000 local and foreign clients have consulted with Jaycee de Guzman on crypto and stock investments.

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