South African stock alert

SAFR

CLOSING UPDATE: Rolfes Holdings drops gains by 3.3% on spectacular volume 21 September 2018 18:59 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).

Rolfes Holdings, South Africa's 4th largest chemicals company by market capitalisation, traded on heavy volume of 9.2 times average today while the price soared 35.0c (or 13.7%) to trade at ZAR2.90. Compared with the FTSE/JSE- Africa Top 40 Index which rose 590.0 points (or 1.2%) in the day, this represented a relative price increase of 12.6%.

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

Undervaluation:

+ Price/Earnings of 8.7 [13.9]

+ Price/Sales of 0.2 [0.7]

+ Price to Book of 1.4 [1.8]

+ Return on Equity 12.8% [10.7%]

+ Return on Assets 6.5% [5.8%]

+ Return on Capital Employed 16% [12.9%]

Bullish Signals:

+ Total Liabilities/EBITDA of 4.2 is less than the Joseph Piotroski benchmark of <5.

+ Tobin's Q Ratio is 0.3. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stock by value of Q Ratio.

+ As per the Du Pont analysis, Return on Equity of 12.8% is better than sector average of 10.7%.

Note

Rolfes Holdings today is at a discount of 21.4% to the 12-month high of ZAR3.69 on 06 Mar, 2018. It is at a premium of 34.9% to the 12-month low of ZAR2.15 on 07 Dec, 2017.

The stock has underperformed 61% of the South African market over the past 6 months.

Bearish Signals:

The negative 0.06 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

The price decreased 0.7% in the last month.

Net profit margin has averaged 3.9% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

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

Overvaluation:

Price/Earnings/Growth of 3.87 [1.3]

Dividend yield of 2.2% [3.4%]

TODAY'S ALERTS

Afternoon Alert: Rolfes Holdings soars 17.6% on spectacular volume

21 September 2018 12:51 SAST

Rolfes Holdings Ltd. (J:RLF) traded on heavy volume of 6.3 times average so far today while the price soared 45.0c (or 17.6%) to trade at ZAR3.0.

Morning Alert: Rolfes Holdings soars 13.7% on firm volume

21 September 2018 10:51 SAST

Rolfes Holdings Ltd. (J:RLF) traded on heavy volume of 1.1 times average so far today while the price soared 35.0c (or 13.7%) to trade at ZAR2.90.

RECENT ALERT

Afternoon Alert: Rolfes Holdings continues significant downtrend, drops 2.1%

17 September 2018 12:50 SAST

Rolfes Holdings Ltd. (J:RLF) continued its significant downtrend and dropped 5.0c (or 2.1%) to trade at ZAR2.30 today.

Rolfes Holdings Ltd. (J:RLF; JNB:RLF; SJ:RLF)

ISIN: ZAE000159836

PermID: 4295889054

Source: www.BuySellSignals.com