Free Stock Analysis - Stock Signals Philippines

Now Corporation (PSE:NOW) suffered a negative net income of P20.20 million for 9M2016, which is 30 percent higher compared to the same period last year. Its 3Q2016 negative net income of P11 million is nearly 69 percent higher compared to the same quarter last year. This didn’t sit well with the investors.

On the technical side, while it looks like NOW has established a short-term support near 2.19, know that the 38.2 percent Fibonacci retracement is near 2-apiece. NOW investors aren’t having it as shown by the anemic volume that was registered for the past two trading days.

MACD is in a bearish convergence with the signal line. RSI is too close on the confirmed oversold state of NOW.

NOW already broke below the long-term trend, which is the 200-day SMA, last November 9, 2016.

Resistance is near 2.72, which is also one of the intersection points of my 10-, 20-, and 200-day SMAs.

NOW - Now Corporation - Chart - November 21, 2016

Top 10 Players’ Sentiment

Participants with a 100% Buying and Selling Activity from Nov-02-2016 to Nov-21-2016 at 03:30PM:

  • 25 out of 73 participants or 34.25% of all participants registered a 100% BUYING activity
  • 2 out of 73 participants or 2.74% of all participants registered a 100% SELLING activity
  • Top 10 Players’ Buying Average: 2.4539
  • Top 10 Players’ Selling Average: 2.4694

NOW - Now Corporation - Top 10 Players - November 21, 2016

Online Foreign Brokers’ Transactions

From November 2, 2016 to November 21, 2016, 3 out of 11 active online foreign brokers traded NOW.

  • Online foreign brokers’ Buy Average: PHP2.38
  • Online foreign brokers’ Sell Average: PHP2.27
  • Number of net buyers among the participating online foreign brokers: 3 out of 3
  • ATR bought the biggest number of shares among online foreign brokers amounting to PHP1,809,620.00.
  • HDI sold the biggest number of shares among online foreign brokers amounting to PHP1,506,600.00.

NOW - Now Corporation - Foreign Brokers - November 21, 2016

Foreign Fund Flow

On a 30-day trading period, NOW is on a Net Foreign Buying worth PHP5,010,860.00.

NOW - Now Corporation - Foreign Fund Flow - November 21, 2016

Risk Level

NOW has a moderate risk level based on my proprietary risk level indicator.

NOW - Now Corporation - Volatility - November 21, 2016

Volume

Volume is low for the past two trading days.

NOW - Now Corporation - Volume - November 21, 2016

Conclusion

If you are a position trader and you believe that the short-term support at 2.19 is the bottom already, you have the option to test-buy within the 2.20-2.30 range. I say “you have the option to” and not “I recommend” because I cannot recommend something to a person whom I have no idea about his or her financial goal, investment horizon, risk tolerance, and more. It’s an option you need to ponder about.

Did you see the buy and sell averages of the top 10 players from November 2 to 21 on my post above? Within that period, many entered a new position at 2.45. Even if nearly 35 percent of brokers who traded NOW within the aforementioned period registered a 100 percent buying activity, base your decision on your personal risk appetite no matter what. I’ve presented the positive and the negative facts in this report so you can have a 360-degree view of what’s  happening in the stock so I can help you make a “customized decision” for yourself.

If you are bearish on NOW, you have the option to wait at the support near 2.00. Whatever your decision is, establish your trailing stop-loss and not just a full stop-loss. Aside from clicking that link to my article where I discussed more about a trailing stop-loss, you may also watch this video below.

If you’re a long-term investor and you’d like to consider NOW, I strongly advise that you consider NOW’s fundamental criteria. Please review its income statement. I have mentioned a brief information about its year-on-year and quarterly earnings report on my introduction. When you stretch its earnings report for the past 5 years, do you see a trend of a negative or a positive net income? Before you review NOW’s 5-year financial statement, ask this to yourself, “Am I going to invest long-term in a stock that is not generating a positive net income? If my answer is a yes, what are the logical reasons what would make me do that?”

Feel free to comment below if you have questions.

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