Latest posts by Jaycee De Guzman (see all)
- BDO – BDO Unibank Analysis – 7.28.2017 - July 28, 2017
- DMC – DMCI Holdings Analysis – 7.28.2017 - July 28, 2017
- BLOOM – Bloomberry Resorts Corporation Analysis – 7.28.2017 - July 28, 2017
In a disclosure to the Exchange dated October 21, DoubleDragon(DD), through its subsidiary Hotel of Asia Inc., doubles its 2020 goal of 1,000 Jinjiang Inn Hotel rooms to 2,000 in different parts of the country.
The accelerated expansion is in line with the expected surge in Chinese business activities and tourists in the Philippines. Total estimated investment value is P6.6 billion.
Hotel of Asia Inc.’s subsidiary is the exclusive master franchisee of Jin Jiang in the Philippines. Jinjiang Inn is one of the largest hotel chains in China.
DoubleDragon owns majority of Hotel Asia after acquiring 70% of the company. The acquisition cost was set at P832.17 million that was paid in DoubleDragon common shares. It was paid at 5% above the 30-day weighted average of the closing of DD common shares preceding the closing date of the transaction that was P61.34 per share.
Hotel of Asia, which owns Hotel 101, serves as DoubleDragon’s hospitality arm. Hotel of Asia operates 866 hotel rooms from two Jinjiang Inns in Ortigas Makati, Hotel 101 in Manila Bay area, and Injap Tower Hotel in Iloilo, City. Injap Tower Hotel in Iloilo is located in a prime area directly in front of SM City Iloilo, and Ayala Atria, and beside the complex being constructed by METRO RETAIL STORES GROUP, INC (MRSGI). It is currently the highest tower in the city.
I use Fibonacci in my technical analysis. It works for me. If you’re a fan of Fibonacci, you must have read that the trend usually reverses when it hits the 50% Fibonacci retracement. Note that I used the adverb “usually” and not “always”. True enough, DD reversed its direction when it touches the 50% Fibonacci retracement near 51.50 last October 14, 2016.
Based on my experience, when the price does not reverse near the 50% Fibonacci retracement, it sometimes reverses near 61.80%.
On a long-term perspective, I’d say DD is still playing inside the bullish territory since it stays above the 200-day SMA (purple line). On the other hand, DD must breach the resistance near 60.20 for it to re-enter the bullish territory on a short-term perspective.
DD’s MACD is a bullish divergence with the signal line. You have the option to wait for MACD to cross above the signal line, with volume, before you enter a new position. RSI is in a neutral state.
DD must breach the resistance near 60 as a pre-cursor to the next resistance near 70.
Top 10 Players’ Sentiment
Participants with a 100% Buying and Selling Activity from Oct-03-2016 to Oct-21-2016 at 03:30PM:
- 19 out of 101 participants or 18.81% of all participants registered a 100% BUYING activity
- 9 out of 101 participants or 8.91% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 54.3365
- Top 10 Players’ Selling Average: 54.0087
Online Foreign Brokers’ Transactions
Note: Below are FOREIGN BROKERS’ numbers only. There’s a separate chart where you’ll find FOREIGN INVESTORS’ Net Foreign Buying or Selling.
- From October 3, 2016 to October 21, 2016, 6 out of 11 active online foreign brokers traded DD.
- Online foreign brokers’ Buy Average: PHP55.18
- Online foreign brokers’ Sell Average: PHP55.76
- Number of net buyers among the participating online foreign brokers: 4 out of 6
- CLSA bought the biggest number of shares among online foreign brokers amounting to PHP29,882,566.00.
- CREDIT sold the biggest number of shares among online foreign brokers amounting to PHP13,153,298.00.
Foreign Fund Flow
On a 30-day trading period, DD is on a Net Foreign Buying worth PHP70,552,419.00.
DD must continue to tread water above its 30-day volume average for its price’s ascent to become sustainable.
DD has a moderate risk level based on my proprietary indicator of a stock’s risk level by using historical or statistical volatility.
So, can DoubleDragon breach its all-time high of 80-apiece and double its current market price before the end of 2016?
I know it’s normal for a newbie investor to ask for certainty. As you grow in experience, you’ll understand that investing in the stock market is 100% probabilities and 0% certainties. Knowing what might happen is not as important as knowing what you should do if and when something happens.
Buildings have a fire exit plan. Does the management know if and when there’ll be fire in the building? No. So why did they bother printing a fire exit plan? That is for them to know what to do and where to go if and when the unprecedented happens. It’s the same logic you should apply when investing.
Do you like this update?
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.