Leisure & Resorts World (LR): Sell at 8.28 or Catch It at 5.55?

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Leisure & Resorts World Corporation (LR) registered a new 52-week high on 19 March 2018 as it closed at 7.06, 12.06 percent up today. LR’s 1-year change is at 77.39 percent.

Are foreign investors heavily invested in LR? Are the top 10 players of LR bullish or bearish? Is this stock recommended for new traders? What could be this stock’s intraday support tomorrow? I’ll answer all these questions.

Fundamental analysis is reserved for my clients at Equilyst Analytics, Inc. (brand owner of Stock Signals Philippines), but I will give you an overview of my fundamental analysis of LR in comparison to its sector’s financial ratios.

Fundamental Analysis

LR is overvalued based on its Price-to-Earnings ratio of 20.20 compared its sector’s 13.85. On the other hand, it is undervalued based on its Price-to-Sales ratio of 0.74 versus its sector’s 1.90. LR is fairly valued based on its Price-to-Book value of 1.50 versus its industry’s 1.67.

I would recommend our Stock Market Tutorials if you want to learn the significance of these financial ratios.

Technical Analysis

On my weekly chart, it shows that LR already broke out of the bearish channel when it pierced the resistance near 5.55 on the second week of March 2018. LR broke another resistance at 6.52. Now it’s poised to break the resistance near 8.28.

I would say that the support remains near 5.55. LR is overbought both on the RSI and Stochastic Daily and Weekly.

So be cautious with your decision now especially if you are on the brink of chasing the stock all the way to the top. Match the risk level of the stock with your risk tolerance.

I’ll show you later my Risk Level chart for LR.

Leisure and Resorts World Corporation (LR) - Weekly Chart - 19 March 2018

Price-Volume Distribution

Look at my Price-Volume Distribution chart for LR. Which price-point got the most volume? Watch out for 7.00 tomorrow. It may act as the support tomorrow. If you are one of my clients, I STRONGLY SUGGEST that you request for your stock’s Price-Volume Distribution chart in our Private Clients Forum before you do any action. Besides, I can give you more information if you have access to our Private Clients Forum.

It’s easier to see the support and resistance levels of the stock with my PVD chart over an intraday chart.

Leisure and Resorts World Corporation (LR) - Price-Volume Distribution - 19 March 2018

The bullishness of LR for the past few weeks is supported by volume. Memorize these questions below.

  • 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)

Leisure and Resorts World Corporation (LR) - Volume - 19 March 2018

Does LR have a strong support from foreign investors?

Foreign investors are present in LR but they are not truly, madly, deeply attracted to this casino stock.

On a 30-day trading period, LR is on a Net Foreign Buying worth PHP14,850,197.00.

Leisure and Resorts World Corporation (LR) - Foreign Fund Flow - 19 March 2018

Are the top 10 players of LR bullish or bearish?

Generally speaking, the top 10 players of LR are bullish but my dataset shows that they’re not overly bullish. Compare the size of the green portion of the bar to the blue portion. This shows that while these brokers remain to be net buyers, their selling transactions are about to overtake their buying transactions.

Participants with a 100% Buying and Selling Activity from Mar-01-2018 to Mar-19-2018 at 03:30PM:

  • 5 out of 104 participants or 4.81% of all participants registered a 100% BUYING activity
  • 18 out of 104 participants or 17.31% of all participants registered a 100% SELLING activity
  • Top 10 Players’ Buying Average: 6.1515
  • Top 10 Players’ Selling Average: 6.1293

Leisure and Resorts World Corporation (LR) - Top 10 Players - 1-19 March 2018

Participants with a 100% Buying and Selling Activity as of Mar-19-2018 at 03:30PM:

  • 9 out of 81 participants or 11.11% of all participants registered a 100% BUYING activity
  • 19 out of 81 participants or 23.46% of all participants registered a 100% SELLING activity
  • Top 10 Players’ Buying Average: 6.9561
  • Top 10 Players’ Selling Average: 6.9486

Leisure and Resorts World Corporation (LR) - Top 10 Players - 19 March 2018

Is LR advisable for newbie traders?

I do not recommend LR for new investors. LR has a high-risk level according to my risk calculator.

Leisure and Resorts World Corporation (LR) - Risk Level - 19 March 2018

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Jaycee De Guzman

Jaycee De Guzman

I have helped thousands of Filipinos trade independently and invest profitably through the Equilyst Analytics, Inc. I have also helped hundreds of SMEs and Fortune 500 companies build and boost their online presence through iPresence Digital Marketing, Inc. Read my About Me page.
Jaycee De Guzman

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