South African stock alert

SAFR

CLOSING UPDATE: Tiger Brands decreases further 1.1%, led Food processors sector lower 17 August 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).

Tiger Brands, South Africa's 2nd largest food processor company by market capitalisation, has tumbled 7.8% to trade at ZAR275.0 vs. the Food processors sector which weakened 2,173.5 points (or 2.4%) to 87,167.0. Representing a weighting of about 23.0% of the sector, the stock accounted for 74.0% of today's loss. The shares have underperformed 99% of the market in the past week. Trading volume was 2.0 times average at the end of the day. Compared with the FTSE/JSE- Africa Top 40 Index which rose 95.5 points (or 0.2%) in the day, this represented a relative price change of -8.3%.

Technical indicators complementing today's significant downtrend:

+ The negative 6.54 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ In the last one month the stock has hit a new 52-week low twice and in the last three months twelve times, pointing to a significant downtrend.

+ The price plummeted 19.9% in the last week.

+ The present value of ZAR1,000 invested one year ago is ZAR697 [vs ZAR1,031 for the FTSE/JSE- Africa Top 40 Index].

Other Bearish Signals include:

+ As per the Du Pont analysis, Return on Equity of 17.9% is lower than sector average of 19.8%.

Note

Bullish Signals:

Total Liabilities/EBITDA of 1.6 is comfortably below the Joseph Piotroski benchmark of <5.

Tobin's Q Ratio is 0.2. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stock by value of Q Ratio.

Net profit margin has averaged 10.4% in the last 3 years. This is better than the sector average of 8.8% and suggests a high margin of safety.

Oversold/Bullish:

The 1.2% premium to 12-month low of ZAR271.69 against the 42.5% discount to high of ZAR478.06 suggests the decline might be bottoming.

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

Undervaluation:

Price/Sales of 0.2 [0.4]

Price to Book of 0.4 [1.1]

Dividend yield of 3.1% [2.3%]

TODAY'S ALERTS

Afternoon Alert: Tiger Brands tumbles 6.8%, leads Food processors sector lower

17 August 2018 12:51 SAST

Tiger Brands Limited (J:TBS) has tumbled 6.8% to trade at ZAR278.07 vs. the Food processors sector which weakened 1,941.5 points (or 2.2%) to 87,399.0. Representing a weighting of about 23.2% of the sector, the stock accounted for 72.6% of today's loss. The shares have underperformed 98% of the market in the past week. Trading volume was 1.5 times average so far today.

Morning Alert: Tiger Brands tumbles 6.5%, leads Food processors sector lower

17 August 2018 10:51 SAST

Tiger Brands Limited (J:TBS) has tumbled 6.5% to trade at ZAR278.99 vs. the Food processors sector which weakened 1,710.5 points (or 1.9%) to 87,630.0. Representing a weighting of about 23.2% of the sector, the stock accounted for 78.7% of today's loss. The shares have underperformed 99% of the market in the past week. Trading volume was 2.1 times average so far today.

RECENT ALERTS

CLOSING UPDATE: Tiger Brands tumbles 8.9%, led Food processors sector lower

16 August 2018 19:02 SAST

Tiger Brands, South Africa's 2nd largest food processor company by market capitalisation, has tumbled 8.9% to trade at ZAR298.33 vs. the Food processors sector which weakened 2,022.4 points (or 2.2%) to 89,340.5. Representing a weighting of about 24.3% of the sector, the stock accounted for 98.4% of today's loss. The shares have underperformed 96% of the market in the past week. Trading volume was 3.7 times average at the end of the day. Compared with the FTSE/JSE- Africa Top 40 Index which rose 891.3 points (or 1.8%) in the day, this represented a relative price change of -9.9%.

Afternoon Alert: Tiger Brands hits 52-week low fifth time in two months

16 August 2018 12:51 SAST

Tiger Brands Limited (J:TBS) hit a 52-week low of ZAR295.55 earlier today for the fifth time in the past two months, but later rebounded higher to ZAR309.24. Trading volume was 3.1 times average so far today.

Tiger Brands Limited (J:TBS; JNB:TBS; SJ:TBS)

ISIN: ZAE000071080

PermID: 4295888525

Source: www.BuySellSignals.com