BUSINESS PROFILE
Alliance Tuna International, Inc. (TUNA) was incorporated and registered with the Securities and Exchange Commission on September 1, 2003, and started commercial operations in 2004 to engage in tuna processing, canning, and export of canned tuna products in General Santos City in Mindanao. TUNA exports to Europe, North America, Asia, Africa and South America, and is a "private label manufacturer" of canned tuna and processes and tuna cans using its customers' brands.
The primary product of the company is canned tuna in the institutional and retail can sizes. To enhance margins, TUNA also processes the by-products and scraps from its tuna processing operations into fishmeal, which it sells to Philippine feed millers.
The company has a marketing representative office in Bangkok, Thailand to tap the network of buyers and brokers who use Thailand as a base to buy canned tuna. TUNA also has a 40% stake in FDCP, Inc., a can-making company, which ensures the availability of quality cans at competitive prices and sustainable supply.
In 2008, TUNA acquired the assets of Indonesian tuna cannery located in Bitung, in the island of North Sulawesi. A complete renovation of the factory and upgrade of capacity to 60 metric tons per day was undertaken. Improvements such as, a temperature controlled clean process room was built. This investment allows TUNA access to Indonesian marine resources and expands operating capacity to 200 metric tons per day.
Source: SEC Form 17-A (2008)
Reference: http://www.pse.com.ph/
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TUNA has closed below its Short time moving average.
Short time moving average is currently above mid-time, and above long time moving averages. The relationship between price and moving averages is: neutral in short-term, and bullish in mid-long term.
Upward trend strength of TUNA for the past two weeks is about 37.97 and its now on its consolidation stage. Average range of TUNA for the past 10 days is about 0.08 only.
TUNA has closed below upper band by 45.2%. Bollinger Bands are 111.4% wider than normal. The large width of the bands suggest high volatility as compared to TUNA's normal range. Therefore, the probability of volatility decreasing and prices entering (or remaining in) a trading range has increased for the near-term. The bands have been in this wide range for 17 days. The probability of prices consolidating into a less volatile trading range increases the longer the bands remain in this wide range.
TUNA has moved in the past 20 days for 0.64 points.
50 Day Historical Volatility (preferably greater than 40%): 44%
6/100 Historical Volatility (preferably less than 50%): 71%
Support/Resistance:
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TUNA's correction is currently at -28%. Its major Fibonacci support line is at 1.92 with its major resistance line is at 2.20.
S&R major support line is at 1.90. While its nearest resistance line is at 2.20 also.
Base from the weekly pivot point analysis of TUNA.
This are the primary support lines of TUNA this week: 1.99, 1.91, and 1.83
While its primary resistance lines for this week are: 2.15, 2.22, and 2.31
Based from these we can conclude that TUNA has a strong support line located in the range 1.90 to 1.92. It has also a very strong resistance that needs to be broken in order for TUNA to continue its upward trend at 2.20.
Buy/Sell:
TUNA's momentum for the past 12 days is somewhat bearish with a strength of -0.06 indicating that it is still on the consolidation stage.
RSI reading for the past 10 days is 56.30. The last signal was a sell 7 days ago. The price and RSI are not diverging.
Williams %R reading is -87.50 (10 days). It is now at the oversold area but it still needs to trigger the buy signal.
Currently the MACD is bearish since it is trading below its signal line.
The MACD crossed below its signal line 3 days ago.
Since the MACD crossed its moving average, TUNA's price has decreased -0.990%
and has ranged from a high of 2.100 to a low of 1.980. There have been no divergence signals within the last 5 days.
Recommendation: BUY
This is a buy since it is already near the end of its consolidation and is already at the oversold area. I'm still expecting TUNA to consolidate a few more days. If you can, try to grab some near the support line at around 1.90 to 1.92. But even so, look for some other signal's to enter this trade for there is also some slight possibility TUNA won't be able to reach that far because of some kind of a support line building up at 1.98.
Short Term Target Price: 2.13
Mid-Long Term Target Price: between 2.17 to 2.27
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