South African stock alert

SAFR

CLOSING UPDATE: EOH Holdings tumbles 7.3%, led Computer services sector lower 18 January 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).

EOH Holdings, South Africa's largest computer services company by market capitalisation, has tumbled 7.3% to trade at ZAR60.02 vs. the Computer services sector which weakened 6,154.6 points (or 2.9%) to 203,275.7. Representing a weighting of about 43.3% of the sector, the stock accounted for the loss. The shares have underperformed 98% of the market in the past week. Trading volume was 81% of average at the end of the day. Compared with the FTSE/JSE- Africa Top 40 Index which fell 58.4 points (or 0.1%) in the day, this represented a relative price change of -7.2%.

Technical indicators complementing today's significant downtrend:

+ The negative 2.34 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ In the last three months the stock has hit a new 52-week low ten times, pointing to a significant downtrend.

+ The price plummeted 14.7% in the last week and 12.3% in the last month.

+ The present value of ZAR1,000 invested one year ago is ZAR396 [vs ZAR1,171 for the FTSE/JSE- Africa Top 40 Index].

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

Overvaluation:

+ Price/Sales of 0.7 [0.6]

+ Price to Book of 6.4 [3.6]

Note

EOH Holdings today is at a discount of 61.8% to the 12-month high of ZAR157.25 on 25 Jan, 2017. It is at a premium of 126.1% to the 12-month low of ZAR26.55 on 08 Dec, 2017.

Bullish Signals:

Interest cover is less leveraged at 7.2 times.

Tobin's Q Ratio is 0.7. Compared with the rest of the market the stock is undervalued.

Net profit margin has averaged 7.1% in the last 3 years. This is better than the sector average of 2.7% and suggests a high margin of safety.

As per the Du Pont analysis, Return on Equity of 14.2% is better than sector average of 9.4%.

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

Undervaluation:

Price/Earnings of 9.0 [17.3]

Return on Equity 14.2% [9.4%]

Return on Assets 7.1% [4.4%]

Return on Capital Employed 16.4% [14.8%]

TODAY'S ALERTS

Afternoon Alert: EOH Holdings sinks 5.7% - underperforming 99% of stocks

18 January 2018 12:50 SAST

EOH Holdings Limited (J:EOH) has sunk ZAR3.69 (or 5.7%) today to trade at ZAR61.06 and has underperformed 99% of the market in the past week.

Morning Alert: EOH Holdings sinks 5.0% on high volume

18 January 2018 10:51 SAST

EOH Holdings Limited (J:EOH) traded on heavy volume of 1.9 times average so far today while the price sank ZAR3.27 (or 5.0%) to trade at ZAR61.48.

RECENT ALERTS

CLOSING UPDATE: EOH Holdings decreases gains by 0.01%, led Computer services sector higher

17 January 2018 18:59 SAST

EOH Holdings, South Africa's largest computer services company by market capitalisation, has lifted 2.2% to trade at ZAR64.75 vs. the Computer services sector which strengthened 3,675.2 points (or 1.8%) to 209,430.3. Representing a weighting of about 45.3% of the sector, the stock accounted for 55.1% of today's gain. Trading volume was 63% of average at the end of the day. Compared with the FTSE/JSE- Africa Top 40 Index which rose 291.2 points (or 0.5%) in the day, this represented a relative price increase of 1.6%.

Afternoon Alert: EOH Holdings lifts 2.2%, leads Computer services sector higher

17 January 2018 12:53 SAST

EOH Holdings Limited (J:EOH) has lifted 2.2% to trade at ZAR64.75 vs. the Computer services sector which strengthened 2,573.5 points (or 1.2%) to 208,328.6. Representing a weighting of about 45.5% of the sector, the stock accounted for 79.5% of today's gain. Trading volume was 1.5 times average so far today.

EOH Holdings Limited (J:EOH; JNB:EOH; SJ:EOH)

ISIN: ZAE000071072

PermID: 4295888857

Source: www.BuySellSignals.com