South African stock alert

SAFR

CLOSING UPDATE: Naspers down 2.8% in 2 days 15 June 2018 19:03 SAST

NEWS BITES - AFRICA

This is an end of day Alert, produced after today's South African market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Naspers, South Africa's largest media company by market capitalisation, extended its slide on Friday, shedding an additional ZAR35.88 (or 1.1%) to trade at ZAR3,299.12. Trading volume was 1.4 times average at the end of the day. The shares have fallen ZAR93.88 (or 2.8%) over the past two trading days vs. the FTSE/JSE- Africa Top 40 Index which has fallen 1.7% in the same period.

Technical indicators complementing today's significant downtrend:

+ The price decreased 1.2% in the last week.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Dividend yield of 0.1% [0.2%]

Other Bearish Signals include:

+ Tobin's Q Ratio is 5. Compared with the rest of the market the stock is overvalued and ranks in the bottom 3% of stocks by value of Q Ratio.

+ As per the Du Pont analysis, Return on Equity of 18.0% is lower than sector average of 19.2%.

Note

Naspers today is at a discount of 20.4% to the 12-month high of ZAR4,142.99 on 21 Nov, 2017. It is at a premium of 33.8% to the 12-month low of ZAR2,465.0 on 07 Jul, 2017.

The stock has outperformed 52% of the South African market over the past 6 months.

Bullish Signals:

The positive 71.29 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

Interest cover is less leveraged at 12 times.

Total Liabilities/EBITDA of 2 is comfortably below the Joseph Piotroski benchmark of <5.

Net profit margin has averaged 27.4% in the last 3 years. This is considered superior and suggests a high margin of safety.

TODAY'S ALERT

Morning Alert: Naspers increases 0.9% on robust volume

15 June 2018 10:50 SAST

Naspers Limited (J:NPN) traded on heavy volume of 1.7 times average so far today while the price increased ZAR29.76 (or 0.9%) to trade at ZAR3,364.76.

RECENT ALERTS

CLOSING UPDATE: Naspers decreases further 0.1%, led market lower

14 June 2018 18:59 SAST

Naspers, South Africa's largest media company by market capitalisation, has decreased 1.7% to trade at ZAR3,335.0 vs. the FTSE/JSE- Africa Top 40 Index which weakened 21.8 points (or 0.04%) to 52,178.2. Representing a weighting of about 18.0% of the index, the stock accounted for the loss. Trading volume was 66% of average at the end of the day. Compared with the FTSE/JSE- Africa Top 40 Index which fell 21.8 points (or 0.04%) in the day, this represented a relative price change of -1.7%.

Afternoon Alert: Naspers decreases 1.6%, leads market lower

14 June 2018 12:51 SAST

Naspers Limited (J:NPN) has decreased 1.6% to trade at ZAR3,337.52 vs. the FTSE/JSE- Africa Top 40 Index which weakened 300.1 points (or 0.6%) to 51,899.9. Representing a weighting of about 18.1% of the index, the stock accounted for 51.9% of today's loss. Trading volume was 1.3 times average so far today.

Naspers Limited (J:NPN; JNB:NPN; SJ:NPN)

ISIN: ZAE000015889

PermID: 4295888592

Source: www.BuySellSignals.com