2016 Gaming Sector Recovery
Analysts are seeing a strong recovery in the gaming sector for this year 2016. The three of the country's biggest integrated resort operators BLOOM, RWM, and MCP reported a combined net income of Php1.48-B in 2Q16, following a poor 1Q16 performance, and reversing the combined net loss of Php2.02-B in 2Q15. Thanks to the VIP segment, the gaming giants total revenues grew by +22.1% in the first half. The tables below show the total gross gaming revenues per company and per segment with VPI leading the way. BLOOM, MCP, and RWM are believed to reach the full-year income estimates for this year.
For 2Q16 ended June 30, BLOOM total revenues increased to Php8.38-B vs. Php5.73-B in 1Q16. Net and operating incomes also increased to Php1.34-B and Php2.48-B, reversing the losses of Php1.15-B and Php828-M in the previous quarter. Revenues reflect Gaming increase of 13%, Hotel, food and beverage increase of 23%, Retail and others increase of 88%. (Data are based on research and may be different from other analysts' estimates. For information purposes only. Use at your own risk.)
Strong uptrend year-to-date
BLOOM continues its healthy uptrend since January this year with a 27.75% YTD (year-to-date) increase, reversing from a year-long downtrend last 2015 (-17.38% 1Y return as of today).
$BLOOM ended the week as a highest gainer in the PSE index increasing 0.40 points or +7.41% following the two-day selloff and previous day's indecision (doji). The stock is showing a potential bullish reversal, but still down by -9.9% on a weekly basis.
RSI, MACD, and Stochastic are also showing signs of reversal. Consolidation might continue on the medium term. We recommend swing trading between 5.25 and 6.63. Major support and resistance levels are 4.84 and 6.83. Breaching either of these prices may trigger a start of a new trend.
BLOOM Quant Approach
$BLOOM closed strong last week above the price trigger @ 5.78 after bouncing from the primary support @ 5.40. The price should hold above the trigger to confirm its initial entry in the bulls-controlled area. Major trend reversal price is @ 5.91, while uptrend support is @ 5.93. We can expect a stronger upward momentum if the price holds above 6.11.
When the price moves against our favor, pyramid buying strategy or accumulation is advisable for risk-averse traders if and only if the price holds @ 5.75. While for risk lovers, 5.40 level is still tolerable. A breakdown below this price will indicate a cut-loss or sell signal.
A mere 'low risk buy' recommendation with only 46% confidence level is given for BLOOM suggesting a weak buy reco. We suggest to watch the prices closely as the stock may move on upward or downward direction.
About Bloomberry Resorts Corporation
Bloomberry Resorts Corporation is a Philippines-based holding Company. The Company is a developer and operator of hotels, casinos and integrated tourism resorts in the Philippines through its Sureste Properties, Inc. (Sureste), Bloomberry Resorts and Hotels Inc. (BRHI), Solaire Korea Co., Ltd. (Solaire Korea) and Golden & Luxury Co., Ltd. (G&L) subsidiaries. Its Sureste and BRHI subsidiaries develop and operate tourist facilities, including hotel-casino entertainment complexes with hotel, retail, amusement areas and themed development components. Its Solaire is a luxury hotel and gaming resort. Its Sureste and BRHI subsidiaries are engaged in the commercial operations, including gaming area and initial non-gaming amenities, such as Solaire's hotel, food and beverage outlets. Its Sky Tower features over two restaurants, the Waterside Restobar and Oasis Garden Cafe. Its G&L operates a hotel and casino property in Jeju, Korea under the T.H.E Hotel and LVegas Casino brand names. - www.investing.com