DFNN, Inc.(DFNN) is a listed company in the Philippine Stock Exchange primarily operating as an IT solutions provider and a systems integrator. These functions enable its clients to compete in a technologically dependent environment.
The company’s key competencies include software/middleware development, IT support services, turnkey implementations, and secure platform development. It also possesses licenses for Electronic Gaming Machines and sports betting with the Philippine Gaming Corporation (PAGCOR).
DFNN announced yesterday that it had signed a joint venture agreement with CYG Pte. Singapore-based Ltd. CYG Pte. Ltd. is a software and technology company with a Research and Development Center in Taiwan.
The agreement aims to optimize DFNN’s current technology offerings as well as merge its local efficiencies to benchmarks abroad. It will act as an accelerator between the two companies.
The contract would bring with ether experience in collaborating with and supporting clients with scalable and robust proprietary technology solutions which can be deployed both in the local and foreign markets.
Unified Gaming Lobby
Instawin, DFNN’s e-casino platform is currently providing the most extensive array of games with nearly 200 locations nationwide.
The platform consists of a Cashier Management System, which allows for easy member administration, member loyalties, cash management, and analytics. It also has a detailed transactional reporting with a Unified Gaming Lobby.
Moreover, it can accommodate all games on a single platform which allows members to try out new and exciting games. It also controls the intellectual property for its products; thus it can modify and cater its solutions to the changing needs of its customers.
The company also announced the declaration of a property dividend on September 18, 2018. It was about the disclosure of dividend on February 28, 2018.
The announcement consists of 8 million shares of its affiliate, Hatch Asia Inc. The entitlement ratio was modified on July 24, 2018, with the intention of the board to distribute the property shares to DFNN shareholders to the maximum extent possible.
The record date for this dividend is March 14, 2018, while the payment date is yet to be announced.
A total of one Hatch Asia Inc. share will be given for every 40.57775 DFNN shares held. Any fractional share will be rounded off.
Trading Inside a Range
For the first six months of the year, revenues were slightly higher by 11.67 percent at PHP 633.92 million. This figure is from only PHP 567.67 million in the same period in 2017.
However, the company’s net income was lower at PHP 77.98 million, a 21.62 percent drop, from the recorded PHP 99.49 million in 2017.
It was mainly brought about by higher expenses totalling PHP 543.11 million. This figure is higher by 16.27 percent versus only PHP 467.35 million in 2017.
DFNN is bullish since April 2018. The moving averages are bullishly aligned with the 15 EMA and 20 SMA as immediate support.
Volume is weak in support of a consolidation pattern. MACD is also moving sideways. RSI is treading at neutral levels.
Furthermore, the stock is trading inside a range with support at 8.26 while resistance is at 9.00. This occurrence gives a trader an upside potential for every swing of roughly 9 percent, which is relatively decent.
It had already bounced from support to the resistance three months for the past month. Should the stock break resistance, the initial target is around 9.54 while if it breaks support, next support line is at 8.05.
As of September 20, 2018, at 12:00 PM, the volume of DFNN is 161.19% of the previous trading day. This stock’s latest volume is still below its 30-day volume average.
Remember the correlation between price and volume.
bullish price + volume above the 30-day volume average = bullish
bullish price + volume below the 30-day volume average = neutral
bearish price + volume above the 30-day volume average = bearish
bearish price + volume below the 30-day volume average = bearish
DFNN has a MODERATE-RISK level due to its risk percentage of 44.40%.
Foreign Fund Flow
DFNN registered a Net Foreign Selling worth P458,752.00 as of September 20, 2018. On a 30-day trading period, DFNN is on a Net Foreign Buying worth PHP5,098,562.00.
Top 10 Players’ Sentiment
Trading participants of DFNN with a 100% Buying and Selling Activity as of Sep-20-2018 at 12:00 PM:
5 out of 11 participants or 45.45% of all participants registered a 100% BUYING activity
4 out of 11 participants or 36.36% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 8.8562
Top 10 Players’ Selling Average: 8.8479
The psychological average price of the top 10 players as of Sep-20-2018 at 12:00 PM is from 8.8479 to 8.8562.
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