In a disclosure dated August 15, 2018, ISM Communications Corporation (ISM) informed the exchange that the Executive Committee approved the subscription of Dennison Holdings Corporation.
Dennison is owned by Davao Businessman Dennis Uy. A total of 883,730,659 unissued common shares with a subscription price of PHP 1.45 per share or a total of PHP 1,281,409,455.55 was the total transaction.
Twenty-Five percent (25%) of the consideration is payable upon subscription while the balance should be paid before the year ends. This transaction will result to Dennison — controlling 45.13 percent of the total company.
ISM Communications: A Company Without Revenues
For the year 2017, ISM did not generate any revenues. The same situation happened in 2016.
However, the company is still incurring expenses resulting in losses.
The company booked a net loss of PHP 269.8 million in 2017. This figure is twenty folds higher than the PHP 13.3 million loss recorded in 2016.
Nonetheless, net income attributable to parent stood at PHP 43.77 million, which is slightly lower than the PHP 55.15 million recorded in 2016.
Same Old Story
For 2018, the company still does not have any revenues during the first half. The company recorded a net loss of PHP 19.79 million lower, compared to the loss of PHP 32.18 million in 2016.
The figure was mainly due to lower losses from other records — totaling to PHP 7.41 million. With the company’s state, this is better than the PHP 19.89 million net loss recorded in 2016.
The Strength of the Balance Sheet
If the income statement appears to be ugly, ISM still has a solid balance sheet. The company has total assets of PHP 1.86 billion, and of this number, PHP 1.17 billion is current.
Additionally, the company appears to have no liabilities. Thus, its equity is almost equal to its total assets.
From its equity, the company also has a strong retained earnings at PHP 816 million as of June 2018. The figure is enough buffer to absorb the company losses.
Shown below is the significant financial information of the company:
A Bullish Cup & Handle
The stock appears to form a Cup & Handle — a bullish formation. The neckline of this formation is either 3.32 or 3.49.
The stock found support at the 61.8 percent Fibonacci retracement ratio. This is seen as excellent support known as the golden ratio.
The moving averages are bullishly aligned with the 15 EMA and 20 SMA as immediate support.
Furthermore, volume spikes on green candles are suggesting that the bulls are in control. MACD, however, is below the zero line and is showing a bearish trend.
RSI also appears bearish and is currently forming a bearish divergence when compared to price action. It is neither overbought nor oversold. Support is estimated at 2.78 while resistance is expected at the neckline values of the formation.
As of August 17, 2018, at 03:30 PM, the volume of ISM is 45.54% of the previous trading day.
ISM has a HIGH-RISK level due to its risk percentage of 97.42%.
Foreign Fund Flow
ISM registered a Net Foreign Buying worth P38,320.00 as of August 17, 2018.
On a 30-day trading period, ISM is on a Net Foreign Buying worth PHP1,052,841.00.
Top 10 Players’ Sentiment – August 17, 2018
Trading participants of ISM with a 100% Buying and Selling Activity as of Aug-17-2018 at 03:30 PM:
17 out of 59 participants or 28.81% of all participants registered a 100% BUYING activity
9 out of 59 participants or 15.25% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 3.1834
Top 10 Players’ Selling Average: 3.2011
The psychological average price of the top 10 players as of Aug-17-2018 is from 3.1834 to 3.2011.
Trading participants of ISM with a 100% Buying and Selling Activity from Aug-13-2018 to Aug-17-2018 at 03:30 PM:
8 out of 87 participants or 9.20% of all participants registered a 100% BUYING activity
7 out of 87 participants or 8.05% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 3.0773
Top 10 Players’ Selling Average: 3.0831
The psychological average price of the top 10 players from Aug-13-2018 to Aug-17-2018 is from 3.0773 to 3.0831.
Top 10 Players’ Sentiment – August 1-17, 2018
Trading participants of ISM with a 100% Buying and Selling Activity from Aug-01-2018 to Aug-17-2018 at 03:30 PM:
4 out of 98 participants or 4.08% of all participants registered a 100% BUYING activity
4 out of 98 participants or 4.08% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 3.1869
Top 10 Players’ Selling Average: 3.1986
The psychological average price of the top 10 players from Aug-01-2018 to Aug-17-2018 is from 3.1869 to 3.1986.
I am Jaycee De Guzman, founder and Chief Executive Officer of Equilyst Analytics, Inc. My mission is to simplify stock trading and investing in the Philippine Stock Exchange using my proprietary evergreen strategy in stock trading and investing. My vision is to level up at least 1,000,000 Filipino stock traders and investors by 2030. I will make it happen.