South African stock alert

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).

Metair Investments, South Africa's 3rd largest auto parts company by market capitalisation, extended its gains on Wednesday, rising an additional 70.0c (or 3.7%) to trade at ZAR19.70. Trading volume was 3.3 times average at the end of the day. The shares have risen ZAR1.14 (or 6.1%) over the past two trading days vs. the FTSE/JSE- Africa Top 40 Index which has risen 1.1% in the same period.

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

Undervaluation:

+ Price/Earnings of 8.8 [9.9]

+ Price/Sales of 0.4 [0.6]

+ Price to Book of 1.3 [2.2]

Bullish Signals:

+ Total Liabilities/EBITDA of 4.8 is less than the Joseph Piotroski benchmark of <5.

+ Tobin's Q Ratio is 0.5. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 6.9% in the last 3 years. This is better than the sector average of 5.9% and suggests a high margin of safety.

Note

Metair Investments today is at a discount of 24.2% to the 12-month high of ZAR26.0 on 28 Mar, 2017. It is at a premium of 13.8% to the 12-month low of ZAR17.31 on 26 Jun, 2017.

The stock has underperformed 60% of the South African market over the past 6 months.

Bearish Signals:

The negative 0.12 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

In the last three months the stock has hit a new 52-week low twice.

As per the Du Pont analysis, Return on Equity of 12.0% is lower than sector average of 13.6%.

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

Overvaluation:

Return on Equity 12.0% [13.6%]

Return on Assets 5.8% [6.8%]

Return on Capital Employed 13.7% [16.5%]

TODAY'S ALERT

Morning Alert: Metair Investments up 5.5% in 2 days

26 July 2017 10:50 SAST

Metair Investments Limited (J:MTA) extended its gains on Wednesday, rising an additional 58.0c (or 3.1%) to trade at ZAR19.58. Trading volume was 4.2 times average so far today. The shares have risen ZAR1.02 (or 5.5%) over the past two trading days vs. the FTSE/JSE- Africa Top 40 Index which has risen 0.6% in the same period.

Metair Investments Limited (J:MTA; JNB:MTA; SJ:MTA)

ISIN: ZAE000090692

PermID: 4295889207

Source: www.BuySellSignals.com