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In a press release to the Exchange, PPC disclosed the following:
Quarterly statements for PPC are yet to be available on Edge. We reviewed its last year’s financial performance to determine relative performance this year. Upon review, PPCs revenues last year was indeed P4.122 billion and net income of P453.17 million for the 9-month that ended September 30, 2015.
This translates to a decrease in revenues of 16% when compared to 2014. What’s remarkable is its net income increased by 125% after revenues dropped. This was due to significant reduction in the companies expenses.
Gross expense were down from P4.6 billion to P3.5 billion. This means that income growth in 2015 was attributable to cost reduction efforts. It’s notable that the management cited that the increased income this year 2016 was driven by higher sales volume which is more sustainable than reducing costs.
Comparing 2016 net income over the 3-year period translates to a significant compounded growth rate (CAGR) of 52%.
Another notable find also is the company’s retained earnings. On December 31, 2014, Retained Earnings posted a deficit of P770 million. As of September 30, 2015, the deficit has been reduced to P314 million.
As of first half of 2015, Retained Earnings is already positive at P169 million. By the end of the year, retained earnings might be in the range of P300-400 million.
PPC closed at 3.73 on October 26, 2016, up 56.72% year to date.
PPC made an attempt to break out above the resistance near 3.86 today. Today’s bullish attempt was supported with a relatively heavy volume.
Four days ago, PPC managed to break out above the midpoint resistance 3.60. I don’t consider that breakout as a confirmation for the short-term bullish trend of PPC. As you can see on my chart below, the 10SMA is still moving below the 20SMA. The confirmation of a short-term bullish trend is when the shorter-term SMA crosses above the longer-term SMA.
PPC remains above the 200-day SMA, however.
MACD is bullish as it moves above the signal line, but it is still moving below the zero line. The position of MACD supports my insight that PPC’s current position is not yet a confirmed bullish trend in a short-term period.
RSI remains on a neutral position.
The alignment of my SMAs, the position of the MACD, and the stance of RSI give PPC more rooms to showcase a bullish performance. However, that does not mean PPC will “surely” move up and pierce the resistance near 3.86.
If you’re bullish on my interpretation, test-buy. Don’t go all-in with your cash.
If you’re bearish or unsure, wait for a technical correction at the support near 3.60. If and when the price draws closer to the support level, don’t make an immediate decision to buy. Check the market sentiment first. If you see a high number of participants with a 100% selling activity on PPC, wait some more as it might breakdown below 3.60 and move near 3.26. If you’re one of our clients in the Stock Signals, you may request for the Top 10 Players chart (daily, weekly, or monthly) of PPC in our forum.
Foreign Fund Flow
On a 30-day trading period, PPC is on a Net Foreign Buying worth PHP1,787,170.00.
Top 10 Players’ Sentiment
Participants with a 100% Buying and Selling Activity from Oct-03-2016 to Oct-26-2016 at 03:30PM:
- 8 out of 50 participants or 16.00% of all participants registered a 100% BUYING activity
- 15 out of 50 participants or 30.00% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 3.6209
- Top 10 Players’ Selling Average: 3.6448
PPC is on a moderate risk level based on my proprietary indicator of stocks’ risk levels.
Today’s volume is the highest since August 25, 2016. Remember the relationship between price and volume. Use the search box on my website to search for my articles where I tackled price and volume distribution.
What Can You Say About This Report?
I do hope I was able to help you through my analysis and simplified interpretation of data. Always have a trailing stop-loss to preserve your capital and to protect your gains.
Please let me know your thoughts by commenting below.