STI Back To School

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It’s the usual rant, according to some pundits it’s a bear market, well then Divisoria is always a bear market, agree?Does it make sense when you buy at a higher price and sell at a lower price? Why don’t we make some sense?

STI, being a holding company, derives its revenues from dividends declared by its subsidiaries. The Company also derives income from business advisory services it provides to the subsidiaries. STI ESG has a total of 78 schools nationwide and is comprised of 66 STI-branded colleges and 12 STI-branded education centers. Of these, STI ESG owns 32 college campuses and four education centers, while franchisees operate 34 college campuses and four education centers. STI ESG also operates two schools that are not branded as STI schools: iACADEMY, which specializes in course offerings in animation and multimedia and digital arts; and De Los Santos STI College, a health science and nursing school.

Fundamentally, STI seems to be doing good, but no it’s not, just showing you the obligatory rundown of meaningless data as far as speculative trading is concerned.

Annual

For the fiscal year ended : Mar 31, 2015
Currency(and units, if applicable) : PhilippinePeso

Balance Sheet
Item Current Year Previous Year
Current Assets 1,222,730,834 1,025,488,146
Total Assets 10,036,047,989 8,299,103,287
Current Liabilities 1,028,053,286 912,194,435
Total Liabilities 2,380,341,996 1,170,933,292
Retained Earnings/(Deficit) 3,233,915,182 2,690,263,952
Stockholders’ Equity 7,655,705,993 7,128,169,995
Stockholders’ Equity – Parent 7,572,725,418 7,038,978,960
Book Value 0.77 0.72
Income Statement
Item Current Year Previous Year
Gross Revenue 2,543,312,541 2,207,355,900
Gross Expense 1,743,759,054 1,498,799,150
Net Income/(Loss) Before Tax 799,553,487 708,556,750
Net Income/(Loss) After Tax 731,409,449 655,197,867
Net Income/(Loss) Attributable to Parent 731,701,208 681,123,230
Earnings/(Loss) Per Share (Basic) 0.07 0.07
Earnings/(Loss) Per Share (Diluted) 0.07 0.07

Quarterly

For the period ended : Sep 30, 2015
Currency(and units, if applicable) : Philippine Peso

Balance Sheet
Item Period Ended Fiscal Year Ended(Audited)
Current Assets 1,446,504,751 1,222,730,834
Total Assets 9,731,801,469 10,036,047,989
Current Liabilities 1,323,047,745 1,028,053,286
Total Liabilities 2,598,544,500 2,380,341,996
Retained Earnings/(Deficit) 3,114,470,177 3,233,915,182
Stockholders’ Equity 7,133,256,969 7,655,705,993
Stockholders’ Equity – Parent 7,058,835,917 7,572,725,418
Book Value 0.72 0.77
Income Statement
Item Current Year (3 Months) Previous Year (3 Months) Current Year-To-Date Previous Year-To-Date
Gross Revenue 715,554,718 607,642,955 1,140,876,087 991,090,229
Gross Expense 666,826,610 451,297,039 1,050,485,633 787,994,898
Net Income/(Loss) Before Tax 48,728,108 156,345,916 90,390,454 203,095,331
Net Income/(Loss) After Tax 33,293,794 142,878,187 68,743,595 182,444,438
Net Income/(Loss) Attributable to Parent 30,470,522 140,153,471 68,604,975 185,692,907
Earnings/(Loss) Per Share (Basic) 0.00 0.01 0.00 0.02
Earnings/(Loss) Per Share (Diluted) 0.00 0.01 0.00 0.02

Let’s check how the stock has done in the market from the previous trade.

Status Open Market Capitalization 3,813,350,665.74
Issue Type Common Outstanding Shares 9,904,806,924
ISIN PHY8171Y1048 Listed Shares 9,904,806,924
Listing Date Oct 12, 1976 Issued Shares 9,904,806,924
Board Lot 10,000 Free Float Level(%) 36.67%
Par Value 0.5 Foreign Ownership Limit(%) 100%
Last Traded Price 0.385 Open 0.380 Previous Close and Date 0.385 (Jan 21, 2016)
Change(% Change) up  0.0000 (0.00%) High 0.400 P/E Ratio
Value 54,895,050.00 Low 0.360 Sector P/E Ratio
Volume 152,340,000 Average Price 0.360 Book Value
52-Week High 0.74 52-Week Low 0.380 P/BV Ratio

If possible, 0.360 or lower is an ideal entry for the next market opening. A staggering 152,340,000 shares out of 3,632,161,776 has changed hands from the last trading day, looks like some serious chaps are in the know and the technical indicators are  somehow starting to show some sign that things are about to change such as the trend direction. Currently the SMA(20) is over EMA(13) which sets the stage for the SWAG golden cross, normally a signal for technical buy, Parabolic SAR is still bearish and MFI going further less than 20% oversold, which is a good opportunity to enter.

STI-01252016

 

Recommendation: BUY/ACCUMULATE

Holding Period: 90 trading days, apply your cut loss strategy if plan don’t work out.

As mandated by law, being a Certified Securities Representative, I CAN NOT guarantee AGAINST LOSS

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