Friday, November 2, 2012

Stock Watch: PIP

Pepsi-cola Product Phils., Inc. (PIP)

According to the Consolidated - Non-Audited financial statement for the first quarter of 2012, total net operating revenues increased with 10.08%, from PHP 4,081,962 thousands to PHP 4,493,234 thousands. Operating result increased from PHP 150,243 thousands to PHP 315,975 thousands which means 110.31% change. The results of the period increased 97.17% reaching PHP 224,849 thousands at the end of the period against PHP 114,038 thousands last year. Return on equity (Net income/Total equity) went from 2.02% to 3.65%, the Return On Asset (Net income / Total Asset) went from 1.28% to 2.07% and the Net Profit Margin (Net Income/Net Sales) went from 2.79% to 5.00% when compared to the same period of last year. The Debt to Equity Ratio (Total Liabilities/Equity) was 75.79% compared to 57.95% of last year. Finally, the Current Ratio (Current Assets/Current Liabilities) went from 1.02 to 0.83 when compared to the previous year.

CP: 5.4
TP: 6.4
BBP: 5.6

Last trading day shows a doji pattern. DMI indicates an upward trend with the ADX at 69, +DI at 44, -DI at 2.25. Based on the 1 month pattern, PIP could currently be on its 5th elliot wave, so a correction is very possible in the next week.

Strategy: Wait for results of 1st trading half day. If stock begins to correct, buy on dips/below 5.4. If not, buy below 5.6.



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