Starmalls, Inc. (STR) shot up big time today after news came out that the Villar–owned Streamtech announced its interest in becoming the third telco.

On October 18, President Duterte signed a law granting a 25-year congressional franchise to Streamtech to construct and operate telecommunication systems for the entire country.

Furthermore, the grant includes mobile and cellular data services, wireless telecommunications, national and international distribution systems, and multi-channel point distribution systems.

The next step for the company is to secure a certificate of Public Convenience from the National Telecommunications Commission (NTC). The commission must then allow Streamtech to use frequency in the radio spectrum.

Backdoor Listing?

Now, why did STR spike up today? Speculators say that Streamtech will use STR for the backdoor listing. The Villar Group also holds and controls the Starmalls, Inc.

Starmalls’ Financial Performance

For the first six months of the year, the company’s rental revenues reached PHP 2.81 billion. This figure is an 11 percent increase versus the recorded PHP 2.53 billion in the same period in 2017.

The rise was mainly due to an increase in occupancy and rental rates of the company’s existing malls. Additional gross floor area on new commercial assets also contributed to the totals.

Furthermore, other operating income of the company totaled PHP 228 million. It increased by 21 percent from the recorded PHP 189 million in the past year.

Net income of the company totaled PHP 1.18 billion. This figure is a 19 percent jump from the PHP 966 million in the same comparable period. It was mainly due to, of course, the rise in revenues.

Technical Analysis

STR rallied strong today. Subsequently, it gapped up but was unable to sustain the strong rally.

Moreover, it closed lower than its opening price. Price breached the 15 EMA, 20 SMA, and 50 SMA which are now expected support.

The candle recorded is weak. The volume supported the rally. MACD turned bullish, and so did the RSI, which reached overbought levels.

Meanwhile, estimated support is at 7.85 followed by 7.05 while expected resistance is at 8.96.

Top 10 Players’ Sentiment

Trading participants of STR with a 100% Buying and Selling Activity as of Oct-24-2018 at 03:30 PM:

17 out of 74 participants or 22.97% of all participants registered a 100% BUYING activity
7 out of 74 participants or 9.46% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 7.9222
Top 10 Players’ Selling Average: 7.9864

The psychological average price of the top 10 players as of Oct-24-2018 at 03:30 PM is from 7.9222 to 7.9864.

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