BUSINESS PROFILE
Megaworld Corporation was founded by Andrew Tan and incorporated under Philippine law on August 24, 1989 under the name of Megaworld Properties & Holdings, Inc. The company was primarily organized to engage in real estate development, leasing and marketing. In 1994, it spun off Empire East Land Holdings, Inc. which focused on the middle income market. On August 19, 1999, the company changed its name to Megaworld Corporation to coincide with its conversion from a purely real estate company into a holding company, although MEG continues to focus on its core competence in real estate development.
The company is primarily engaged in the development in Metro Manila of large-scale mixed-use planned communities, or community townships, that integrate residential, commercial, educational, leisure and entertainment components. In addition, MEG engages in other property-related activities such as project design, construction oversight and property management. MEG's real estate portfolio includes residential condominium units, subdivision lots and townhouses, as well as office projects and retail space. The company's property development projects include Eastwood City, Forbes Town Center, McKinley Hill, Newport City, Manhattan Garden City, and Cityplace.
MEG's subsidiaries include Megaworld Land, Inc., Richmonde Hotel Group International Limited, Prestige Hotels and Resorts, Inc., Eastwood Cyber One Corporation and Forbes Town Properties and Holdings, Inc., among others.
Source: SEC Form 17-A (2008)
Reference: http://www.pse.com.ph/
Analysis:
MEG has closed below its Short time moving average and is still currently trending downward with a strength of about 36.32. Short time moving average is currently above mid-time (50 MA), and above long time moving averages (200 MA). The relationship between price and moving averages is: neutral in short-term, and bullish in mid to long term.
MEG historical volatility for the past 2 weeks is approximately about 56.43%.
Bollinger Bands are 2.1% wider than normal.
MEG has closed above bottom band by 9.0%.
The current width of the bands (alone) does not suggest anything conclusive about the future volatility or movement of prices.
(Note: double click image to enlarge)Base from the weekly pivot point analysis of MEG.
This are the primary support lines of MEG this week: 1.32, 1.26, and 1.22
While its primary resistance lines for this week are: 1.42, 1.46, and 1.52
MEGs momentum for the past 10 days is somewhat bearish with a strength of -0.07.
The RSI reading is 44.57. It is not currently in a topping (above 70) or bottoming (below 30) range. The last signal was a sell 7 days ago.The RSI and price are not diverging. Base from our RSI reading we can confirm that MEG is currently below and near a major resistance line (1.26 Resistance Line).
Williams %R reading is now -90. It already indicates an oversold condition for MEG.
Currently the MACD is bearish since it is trading below its signal line.
The MACD crossed below its signal line about 3 days ago.
Since the MACD crossed its moving average, MEG's price has decreased -3.125%
And has ranged from a high of 1.360 to a low of 1.220.
Base on our MACD there have been no divergence signals within the last 5 days.
Suggestion: BUY
This is a buy because:
1. Its near our projected support lines,
2. Its starting to gain momentum. If not for the red DOW influence MEG could have breakout already.
3. Leading indicator (Williams %R) already indicates a BUY signal.
Even thou MACD is still indicates a SELL signal. It is a lagging indicator and I usually use it as a confirmation signal to buy.
Target Price for August 24, 2009 is 1.36. That's about twice the daily average range for MEG the past 10 days. But i still expect MEG to reach about 1.42 before entering the oversold state.
When buying MEG i suggest to buy it, if you can, near or between our support lines: 1.22 and 1.26.
Probability of Finishing Above Upper Target : 15.87 %
Probability of Finishing Below Upper Target : 84.13 %
good!
ReplyDeleteNice technical graphs you have here though I'm not a technical trader. I recently profited from MEG. I bought some shares before at 1.30 and 1.32 and sold them all at 1.42. Aside from it, the cash dividend is also good. I am looking forward to buy MEG shares again if the stock value fell below 1.20.
ReplyDeleteI'm glad i can be of help to you. I doubt if MEG can retrace back to 1.20 immediately. It still has momentum and strong upward trend. I'm expecting MEG to consolidate soon. Especially that it already hit the 1.42 and is already overbought. Watch and see muna ako for MEG and wait for the next possible good entry for another tsupita. By the way, I can see an inverted head & shoulder formation on MEG with a possible target price of around 2.0. With this we can expect MEG to reach atleast 2.0 very soon.
ReplyDelete