(This analysis is for October 26 - 30, 2009)
BUSINESS PROFILE
Pacific Online Systems Corporation (LOTO) was incorporated on November 11, 1993. LOTO is engaged in the development, design and management of online computer systems, terminals and software for the Philippine gaming industry. It brokers technology from global suppliers of integrated gaming systems and leases to PCSO the equipment needed for its online lottery operations in the VisMin regions. LOTO also provides PCSO the necessary technical support.
In addition to its core gaming operations, LOTO also has an investment in Innovative Solutions Consultancy Group (Synergy), a joint stock company incorporated to manage enterprises engaged in the gaming business. Synergy's subsidiary is Total Gaming Technologies, Inc., a domestic firm founded to develop new games for the Philippine gaming industry and to provide consultancy service and equipment to the local gaming operators.
On August 29, 2007, LOTO, through its subsidiary Loto Pacific Leisure Corporation, acquired Lucky Circle Corporation, a company engaging in retail sales for PCSO products, principally operating at SM malls nationwide.
As of December 31, 2008, LOTO had already deployed 1,600 on-line terminals around the VisMin territory. LOTO's total terminal deployment also covered 67 cities and 461 municipalities.
Source: SEC Form 17-A (2008)
Analysis:
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LOTO 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.
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.
LOTO has closed above bottom band by 23.5%.
Bollinger Bands are 10.5% narrower than normal.
The current width of the bands (alone) does not suggest anything conclusive about the future volatility or movement of prices.
Bollinger Bands are 10.5% narrower than normal.
The current width of the bands (alone) does not suggest anything conclusive about the future volatility or movement of prices.
LOTO is presently on a correction. Its trend strength is 39.50, and its average range for the past two weeks is 0.42.
50 Day Historical Volatility (preferably greater than 40%): 75%
50 Day Historical Volatility (preferably greater than 40%): 75%
6/100 Historical Volatility (preferably less than 50%): 42%
Support / Resistance:
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Current retracement is at -29%. Nearest fibonacci support line is at 15.663 and its nearest resistance is at 17.
For the S/R, nearest resistance is at 16.25.
Base from the weekly pivot point analysis of LOTO:
Main pivot point for the week is 16.58.
This are the primary support lines of LOTO this week: 16.17, 15.58, and 15.17
While its primary resistance lines for this week are: 17.17, 17.58, and 18.17
While its primary resistance lines for this week are: 17.17, 17.58, and 18.17
Buy / Sell:
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LOTO momentum is bearish (-0.06) for the past 12 days.
RSI reading for the past two weeks is 49.81.
Williams %R is at the oversold area already (-80).
MACD reading is still bullish at 0.21.
RSI reading for the past two weeks is 49.81.
Williams %R is at the oversold area already (-80).
MACD reading is still bullish at 0.21.
Recommendation: BUY on pullback.
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