Xurpas, Inc. (X) saw a 360-degree turn about its financial performance for the first half of the year. The company suffered a loss of PHP 143.65 million for the first half of the year.
The figure is a full reversal or 193 percent lower versus last year’s performance when the company earned PHP 154.73 million in net income.
Noticeably, revenues for the first half of the year stood at PHP 609.5 million, only half of what it earned last year of PHP 1.21 billion.
Aside from the drop in revenues, the company also shared some of its associate companies’ net loss. It amounted to PHP 21.75 million.
Provisions for income tax increased to PHP 45.17 million. This is 212 percent higher than the tax benefit of PHP 40.24 million in 2017.
The Company’s Enterprise Services segment grew by 20 percent to PHP 379.42 million for the first half of the year versus PHP 316.30 million for the same period last year. This was mainly attributable to increased revenues from software development, software products, and recurring business from previous clients.
On the other hand, the Mobile Consumer Services revenues dropped significantly to PHP 187.31 million — lower by 78.20 percent versus the recorded PHP 858.69 million in 2017. This segment composes 31 percent of the company’s total revenues.
Other services, though, increased by 27 percent. Storm Technologies, X’s subsidiary, posted its highest first half revenues of PHP 42.74 million.
The gain was mainly due to sustained business with large corporate clients and a broader employee base at 94,000 as of the second quarter of the year, compared to 66,000 in the fourth quarter of 2017.
There’s Still Hope
Earlier, the company announced a significant breakthrough relating to ODX Pte. Ltd, its wholly owned subsidiary.
ODX recently consummated a partnership with YouDeal, the largest peer-to-peer service marketplace in the world. Currently, YouDeal has 50 million users and seven million sellers from over 300 industries on its platform.
The company has USD 60 billion in trading volume. With ODX’s free internet strategy, YouDeal plans to tap into the rest of Southeast Asia.
Furthermore, X announced its plan to launch several blockchain projects. This is seen to boost and complement existing mobile consumer and mobile enterprise businesses.
Xurpas also has an ongoing token sale for ODX. The proceeds from the deal are yet to be included in the figures for the first half of 2018.
ODX stands for Open Data Exchange. It is a global marketplace which enables publishers and internet service providers (ISPs) to deliver free internet access to consumers in emerging markets.
Poised to Enter Unchartered Territories
At present, the stock is hovering at its all time lows. If you are using moving averages as a strategy in entering a position, you would totally avoid this stock as all its moving averages are pointing downwards.
They’re even bearishly aligned. The stock would have multiple layers of resistance as each moving averages would be an opportunity for a sell off.
MACD is also below the signal line and is below the zero line. This is shouting BEAR at all angles.
Volume on the red candles is visibly higher than that of green candles. This shows that indeed, a sell off is happening every time the stock starts moving south. This is another bearish signal.
Meanwhile, RSI is negatively sloped. It is currently moving at oversold levels. One may be tempted to start buying.
One must know though that a stock may continue being oversold for extended (and even long )periods of time. It would be better to wait for the actual reversal and recovery of the RSI.
Based on the four points given above, the stock is a full-on downtrend and merits a sell based on technical analysis alone. (Chart as of 3:20 PM)
As of August 16, 2018, at 03:30 PM, the volume of X is 28.35% of the previous trading day.
Remember the correlation between price and volume.
- 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)
X has a LOW-RISK level due to its risk percentage of 29.60%.
Foreign Fund Flow
X registered a Net Foreign Selling worth P355,720.00 as of August 16, 2018.
On a 30-day trading period, X is on a Net Foreign Selling worth PHP6,496,540.00.
Top 10 Player’s Sentiment
Trading participants of X with a 100% Buying and Selling Activity as of Aug-16-2018 at 03:30 PM:
13 out of 29 participants or 44.83% of all participants registered a 100% BUYING activity
9 out of 29 participants or 31.03% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 2.9146
Top 10 Players’ Selling Average: 2.9388
The psychological average price of the top 10 players as of Aug-16-2018 is from 2.9146 to 2.9388.
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