STOCK Last Trade52-wk rangePE(TTM)STOCK VS.IND PEMarket-to-Book Support ResistanceTechncialOutlook
2.22 – 3.5022.9x0.710.662.5003.000
1.16 – 3.271.3x0.050.861.2001.750
1.92 – 6..60309.6x11.422.412.3003.150
SPLASH CORPORATION [pse: SPH]
Disc. No. 2010-8307 2010 REVENUE & NET INCOME GUIDANCEThe Company expressed confidence it will meet its 450% targeted increase in its net income for 2010 on the back of enhanced efficiency in asset utilization, cost and expense control and new products introduced to the market. Adding to thisoptimism is the strong performances of its domestic, international and direct selling segments. SPH see a 15% increase inrevenue translating to php3.116 billion (vs. last year's php2.71 billion.) Efficient use of assets and cost controls are seen toexpand margins to 4% from less than 1% in 09. Theguidance reveals a net income of php130.5 million for 2010translating to an EPS of php0.199 placing the forward PE at 13.9x versus the current annualized 22x. This shouldresult to a fair market valuation of php4.18 per share.
SPH price charts support the optimistic outlook. Although it kept a negative bias soon after it broke a three-monthdowntrend, it has stayed above such line, eventually settlingat a low of php2.22 in mid-December. Since then it has picked up significantly, with all underlying daily, weekly and monthly indicators positing a positive bias. At last week'sclose, price had closed above its 10pdEMa, which in turn was poised to run over the 50pdEMA at php2.51. MACD indicatesa cross over the signal line, moving into positive territory asSTO emerges from oversold territory, likewise crossing over the trigger line. While the rise in the AccDist Line is rather slow, it is positively biased. Today's trades (December 28) strengthens our BUY position.
SOUTH CHINA RESOURCES, INC. [pse: SOC]
Disc. No. 2010-8308 ADDITIONAL INFORMATION ONACQUISITIONSOC's investment in AGP International (AGP), which holds40% of the outstanding capital stock of AGP PhilippinesHoldings I, Inc. (AGP Phil), was effected through thesusbcription to US$6 million worth of Series A Preferredshares of the former. (26,086,957 shares @ US$0.23 each)This represents 6.5217% of AGP's authorized securities(preferred). AGP's capital is composed of 1.4B no par sharesdivided into 1.0B common and 0.4B Series A preferredshares. AGP Phil acquired ALL the shares of DMCI Holdings,Inc. in Atlantic Gulf & Pacific Company of Manila, composedof 973,089,025 direct and 17 indirect shares representing98.19% of AG&P's outstanding stock. AGP Phil is into steelfabrication and modular construction, with expertise in structural mechanical/ piping, electrical, instrumentation and relatedworks.
We had earlier tagged the counter as a trading buy, riding on it if and when volume flow picks up. Price has hugged the10pdEMA, biased north and is poised to break through the 150pdEMA at php1.70. Both medium term (50pdEMA) and long termlines are almost flat between php1.70 and php1.82, marking such as the near-term target range. All underlying technical indicators draw positive signals, supporting the gradual price pick up off its php1.22 low in the week-ending November 19
. We find no justification to revise the tag.
DISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADEAVAILABLE TO OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THEINFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR COMPLETE AND IT SHOULD NOT BE RELIED UPONAS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OFTHE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS ORINVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED.
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