For the first quarter of 2017, the company already has a net income of P27 million. If we are to assume that it will incur its revenues and expenses evenly throughout the year, the company would have a net income of P108 million in 2017. This is actually a drop in income versus 2016. For valuation purposes, let’s use both P108 million and P132 million as forward and trailing earnings.
It appears that CLC is trading at extremely expensive valuation using P/E ratio at 152x to 178x. Even if we assume that after IPO, CLC doubles its net income from P132 million to P264 million, EPS will be at 0.15 and P/E will still be at 71.2x using a stock price of 10.68.
However, when using book values, the stock is only trading at a P/BV of 1.28x, meaning, the stock is expensive by 28 percent versus its book value.
As to comparables, the stock would probably be comparable to 2GO and TUGS. However, due to a restatement of financial statements in 2GO, we cannot use it to compare with CLC. As it stands, TUGS is trading at 14.28x P/E based on 2016 earnings and at 1.0x P/BV. Comparing CLC to TUGS, CLC appears overvalued using the two parameters.
CLC intraday started out strong but it was downhill after the first 30 minutes. The 15 EMA and 20 SMA in the 5-minute chart are both pointing downwards. Noticeable volume spikes on red candles have been spotted as well. MACD is bearish while RSI is also bearish and nearing oversold levels. We cannot properly mark support since today is just the first day of the stock but as to resistance, it would probably be at 10.62 first followed by 10.68 (the IPO price).
Top 10 Players’ Sentiment – August 8, 2017
Participants with a 100% Buying and Selling Activity as of Aug-08-2017 at S:
7 out of 122 participants or 5.74% of all participants registered a 100% BUYING activity
14 out of 122 participants or 11.48% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 10.9606
Top 10 Players’ Selling Average: 10.9463
Price Volume Distribution – August 8, 2017
The majority of the trades happened at price 11.04 followed by 11.18. This means that there were a lot of buyers, and potentially retail investors who are stuck at those levels. We expect heavy resistance on those levels once the stock moves higher. At market close, there was also significant volume at the closing price of 10.56 suggesting that there was a last minute panic today. Overall, the majority of the volume happened at the higher prices. You could analyze it in two ways. It’s either: 1. The institutional buyers are still holding at higher levels or 2. The retail investors are stuck at those levels.
Our Overall Sentiment: FOR FURTHER REVIEW
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