Cirtek shares nearing oversold position

Cirtek Holdings Philippines Corp. is one of the few listed technology companies listed at the Philippine Stock Exchange. PHOTO FROM CIRTEK WEBSITE

FULLY-INTEGRATED technology company Cirtek Holdings Philippines Corp. (TECH) saw its shares slightly slipping on March 10, 2022 by 1.41 percent week-on-week, or from P2.84 to P2.80 due to ongoing supply chain disruptions.

Over a period of 12 months, Cirtek’s highest closing price was P6.62 on June 28, 2021 and its lowest was P2.77 on May 16, 2022. Its net income over the past three years were as follows: $8.42 million in 2019, $6.60 million in 2020 and $8.14 million in 2021. Cirtek Holdings was registered with the Securities and Exchange Commission on Feb. 10, 2011 and was listed at the Philippine Stock Exchange on Nov. 18, 2011.

“Financial-wise, in the first quarter of 2022, the company posted a decline in both revenue generation and cost efficiency, which eventually led to a 50.9-percent drop in its net income. Chart-wise, the share is showing bearishness as it is having a hard time getting past its 10-day and 20-day exponential moving averages,” Philstocks Financial Inc. senior research analyst Japhet Tantiangco said in his analysis.

Hence, Cirtek may not be a good stock to invest in for now due to global concerns.

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“Prospect-wise, the ongoing supply chain disruptions and possible slowdown in the global economy amid lingering headwinds could weigh on TECH and on the manufacturing sector in general,” Tatiangco added.

As to whether Cirtek’s stock is oversold or overbought, Tatiangco explained that based on the stock’s 14-day Relative Strength Index, it is neither overbought nor oversold. It is, however, biased to the latter.