MRC, MAC, SM – Free Analysis – October 03, 2017

MacroAsia Corporation (MAC) booked a net income of P672 million in the first half of 2017. This translates to a net profit margin of 14.92 percent and an EPS of 0.52. This also further leads to an estimated P/E of 10.77x, undervalued versus the index. The stock is also trading at 2.96x P/BV, overvalued versus the normal value of 1.00.

For the first half of 2017, MAC had total revenues of P1.43 billion which was mainly driven by in flight and other catering services totaling P801 million and ground handling and aviation P460 million. Income grew by around 400 percent to P672 million.  Net income growth was mainly driven by a 186 percent growth in the income of Lufthansa Technik Philippines, Inc for maintenance, repairs, and overhaul (MRO) services at the NAIA, DMIA, MCIA, and Davao International Airport. This is a joint venture between Macroasia Corporation (49%) and Lufthansa Technik AG of Germany (51%).

MAC is still consolidating inside a range. Moving averages are still bullishly aligned. The 15 EMA appears to be acting as support. Volume is still relatively thin. MACD is still bullish. RSI, however, is bearish but is near overbought levels. Support is estimated at 14.09 while resistance is expected at P15.84.

MAC - Daily Chart - October 2, 2017Price-Volume Distribution

Majority of the volume was recorded at15.2 intraday. Majority of the trades were recorded at the same level. Current price is at 15.28.  This means that 15.20 is a significant level and may act as support intraday.

MAC - Price Volume Distribution - Intraday - October 2, 2017

MRC Allied Inc (MRC) booked losses of P12.09 million for the first half of 2017. This translates to a loss per share; thus, P/E cannot be computed. The stock is also trading at 3.6x P/BV making it overvalued as well.

Last September 21, MRC disclosed the creation of preferred shares which is in line with their gearing to become a renewable energy company. The preferred shares would help raise capital for the company to engage in their RE related projects.

MRC continues its uptrend as a possible higher low is in place. Moving averages are bullishly aligned. The 15 EMA and 20 SMA are currently acting as support. Volume though has been thin so far. MACD is moving sideways. RSI is bullish but is at neutral levels. Support is estimated at 0.32 while resistance is expected at P0.375.

MRC - Daily Chart - Intraday - October 3, 2017 v2Price-Volume Distribution

Majority of the volume was recorded at 0.36 intraday. Majority of the trades were recorded at the same level. Current price is at 0.36.  This means that this is a significant level and may act as support intraday.

MRC - Price Volume Distribution - Intraday - October 2, 2017 v2

SM Investments Corporation (SM) has a net income of P26.12 billion and net profit margin of 14.32 percent for the first half of 2017. Actual EPS is at 13.77 which will lead to an estimated full-year EPS to 27.54. This brings the stock’s P/E to 32.90x, significantly overvalued versus the index. The stock is also trading at an expensive 2.501 Price to Book value.

Last August 29, 2017. SM confirmed that it was having preliminary talks with for a possible investment, joint venture or another cooperative arrangement with Goldilocks Bakeshop. The deal, however, would still be subject to the scrutiny and approval of the Philippine Competition Commission.

SM still appears to be bullishly strong and is poised to challenge its all-time high. The moving averages are still bullishly aligned. Volume profile still supports a bullish perspective. MACD is bullish while RSI is bullish and is at overbought levels. Support is estimated at 879 while resistance is expected at 917.

SM - Daily Chart - Intraday - October 3, 2017Price-Volume Distribution

Majority of the volume was recorded at 904 intraday. Majority of the trades were recorded at the same level. Current price is at 906.  This means that 904 is a significant level and may act as support intraday.

SM - Price Volume Distribution - Intraday - October 2, 2017

This intraday analysis is the free version of our premium Daily Stock Analysis service.  Our premium analysis has these components:

  1. Technical Analysis
  2. Fundamental Analysis
  3. Volume Analysis
  4. Foreign Fund Flow Analysis
  5. Online Foreign Brokers Transaction Analysis
  6. Top 10 Players Analysis
  7. Price-Volume Distribution Analysis
  8. Risk Level Analysis
  9. Analyst’s Overall Sentiment

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About the Author
The Stock Signals Philippines is the online news media arm of Equilyst Analytics. Inc., an SEC-registered stock market consultancy firm in the Philippines that guides Filipinos on long-term investing and short-term trading and offers mentoring services.

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