IP Update

After the sale of his interest in the national electricity superhighway, tycoon Ricky Razon is now shopping around for a listed shell company for his ventures outside of international port operator ICTSI.

We're talking about Bloomsbury Investments, which is now building a $1.3-billion integrated casino and tourism facility at the Pagcor-initiated Entertainment City in partnership with the gigantic Las Vegas Sands group, which operates the famous Venetian casino complex.

According to the grapevine, Razon is in talks with publicly listed IPVG Corp. or some of its operating units for the backdoor-listing ticket. IPVG, after all, is undertaking a restructuring program to unlock values at the publicly listed shell company level while spinning off its technology-related businesses. This means that Razon can come in and infuse his gaming interests into IPVG.

-Doris Dumlao

Stock Tips 10/19

Dow is up by a little over 180 points as well as NASDAQ, S&P 500, and even gold. Is Dow's correction already done? It's hard to tell but we can expect PHISIX to start up strong today.

1.) Most people are stuck with stocks that went down yesterday and if these stocks will surge early, it is an opportunity to get out.

2.) Another reason why PHISIX will surge is the entry of traders. Because of Dow's +180.05, it will prompt buying. It may be short lived because such traders may exit on initial rallies.

3.) Another possibility is PHISIX surging until close. Ideal game plan for this one is to sell on rallies and buy back during the retracement. However, monitor if the market will indicate some strength near close (like IP yesterday).

A special case is IP and other stocks that surged. These stocks are candidates for gap ups. In IP's case, it may reach 3.87 during the initial surge. IP is a stock that is worth monitoring because if it breaches 3.87, it may surge ahead to 4 or even higher. CLOUD may follow IP but must be sold on initial high.

DFNN may follow IP and CLOUD after these two stocks lose their momentum.

Pick blue chips selectively. I think that we are already on a confirmed bull run. This may continue to do so until December.

Stock Analysis 10/18

Dow Jones is down by nearly 250 points. NASDAQ, S&P 500, and gold are down as well. Basically, almost everything is down. This could be the long awaited correction that we are looking at. Dow has surged significantly over the past few days.

Below is the chart of PHISIX.

PHISIX has just broken past its support which may indicate some bullishness. However, because PHISIX, just like Dow, has been surging for the past few weeks, it may correct along with Dow. Worst case scenario is PHISIX going back down to fill the gap at 3900 levels (encircled). Should we be worried? Personally, there is nothing to be worried about. The market has gained some strength to push it back up. What we may experience is just a mere correction. PHISIX's MACD and RSI are far from overbought and are indicating bullishness.

What should we do? If PHISIX will show some weakness, either we'll hold on to our shares or sell it and buy back lower.

My stock pick for today is MA. MA has exhibited some consistency.

The chart above shows that MA has been rising slowly but consistently. Good thing is that it has broken past its resistance at 0.06 and both MACD and RSI aren't indicating some bearishness. If we may recall, MA wen't up by 10% and its RSI still haven't reached 50 which indicates that there is still a very huge room to grow. What's with MA? There is really nothing so serious about MA right now aside from its chart pattern and price action. MA moves with LC and this is a good stock to pick until March when Goldfields makes its final payment on Lepanto. Why MA over LC? Because MA is way, way cheaper than LC. P2 can buy roughly just a share of LC or LCB but can buy more or less 33 shares of MA or MAB. That's some penny stock earning power there.

Other stocks to look at are PX, the hyped IP-CLOUD-LR-BEL-DFNN tandem, and the future wonder stock LIHC.

NI and ORE

The 2-day massive sell down has brought most stocks down. Corrections are healthy and are always a part of the market movement. The good thing, what goes down always comes back up.

Majority of the stocks are on their bargain prices and after days, and even weeks, of bullishness, most of these stocks have retraced and are soon bound to go back up.

ORE and NI have shown great potential to rise. On the first chart below, ORE is currently resting on its channel support at 5. How strong is the support? ORE's low for the day was 5 signifying that such support is strong.

Hyped to make it to 10, ORE is poised to give nearly 100% return. Fundamentally, the ASM is scheduled on September 15 and prices are expected to rise before the said date.

Below is the chart of NI. NI bounced at 50% Fibonacci at 3.67.

Fundamentally, NI is being prompted by the anticipation of a "big company" coming in. Because NI bought a part of ORE, both NI and ORE might go hand in hand together.

Both NI and ORE are poised to make it to 10 but the question is who makes it first. As far as the channel and Fibonacci are concerned, ORE is a sell at the 7 or even 8 levels while NI may breach 4 once again in a very short period of time.

EDC: Soon to Rise Again?

EDC's chart suggest that it may once again regain some bullish momentum. In the first chart (below), EDC's price is currently resting at 23.6% Fibonacci in more than a 2 year span. Though 23.6% Fib isn't considered as a major support compared to 38.2%, 50%, and 61.8%, in some cases, price action bounce at 23.6% Fib. Should this support hold, EDC may head back to its previous high at a little over than P7.

The second chart below shows that EDC's 2-year 23.6% Fib is currently at its 1-year 50% Fib which is considered as a major support (encircled in yellow). With two Fibonacci ratios hitting the same price, this further solidifies EDC's chances of resuming an uptrend.

But some caution should be exercised. EDC's RSI and MACD suggests that it is a little far from being bullish. EDC's RSI is oversold which could mean two different things: [1] Traders/investors have lost interest/confidence in this stock thus selling and getting rid of it (probably for the mean time), or, in the positive note, [2] Should EDC gain momentum, there is a very high upside because of the availability of shares.

Fundamentally, EDC incurred losses amounting to P1.3B upon shutting down its Northern Negros Geothermal Power (NNGP) but made it up by bagging tax breaks from two geothermal power projects worth P3.91B.

Indicators suggest that EDC is bearish as of the moment but it may rebound quickly and be bullish in an instant. Confirmation in the price action is needed to minimize the risk. Brokers currently having heavy loads of EDC from August 17 to August 22 are BDO Securities, Macquarie Securities, Abacus Securities, and Angping and Associates (to name a few).

Megaworld: Mega-rise bound?

Megaworld (MEG) has been a megastock midyear 2010 after it's meteoric rise from less than P1.2 to over P2.8 in just 6 months, talking about some 133% gain in just half a year span. Apparently, MEG has somewhat lost some steam in 2011, range trading between the P2-P2.4 levels before finally breaching P2 and head down to as low as P1.8.

Though MEG has exhibited some bearish characteristics, significant moohlah can still be earned from this stock and in fact, it may once again gain it's bullishness that it once had.

The chart below shows MEG's trading channel for the past 4 months.

What's significant about MEG's chart is its support. It's price bounced thrice (as of the moment) upon hitting its support indicating that support is strong and reliable enough. Should MEG exclusively follow such trend, an entry price of less than P1.8 is ideal, preferably 1.75 or lower. MEG's MACD indicator is also indicating some bullishness. MACD is a trend indicator signifying how strong (either bullish or bearish) a trend is.

Fundamentally, MEG has reported 70% increase in earnings to P15.75B in the first half of 2011 in comparison to the same period last year and it's net income increased by 131% to P5.16B including a P2B non-recurring gain from sale of AGI shares of stock. MEG's strong performance was backed by strong sales of residence projects such as Newport City, McKinley West, and McKinley Hill, as well as strong leasing income from it's BPO and retail portfolio.

With an entry price of P1.75 soon (hopefully) to be hit by September, MEG can rise to as high as 2.15 as far as the channel is concerned. We are looking at a conservative near 25% gain. Not really bad to swing trade.

Nihao Mineral Resources International (NI): Time To Shine Once Again?

Nihao Mineral Resources International (NI) is one of the most loved and hated stocks last year. After hitting more than P8 late in 2009, NI has gone downhill leaving many traders trapped and forced many others to cut their losses.

However, NI is showing some signs of life and opportunities to win some love back. The chart below is NI's 6-year uptrend support wherein it suggests that its price is currently hovering above such support. There is also a potential inverted head and shoulder formation coming and should such pattern come into a reality, NI is bound for some significant rebound. A target price of P4 is ideal for the inverted head and shoulder.

This second chart shows NI's price action for the past 3 months. NI has found a resistance at P2.50 and is out to challenge it once again.

This last chart shows that NI has been gaining momentum as it has risen for the past 3 days and its RSI (encircled in green) is showing that there is some buying pressure on NI.

NI's momentum is not yet significant but is worth looking at. Personally, I think that it is a good buying opportunity for NI.

Personal Disclosure: Bought some NI @ P2.27