South African stock alert


Afternoon Alert: Alviva Holdings accelerates rise, now up 3.7% in 2 days 20 September 2018 12:51 SAST


Alviva Holdings Limited (J:AVV) is up 67.0c (or 3.7%) over the past two trading days. After rising 1.6% on Wednesday, the stock rose 2% on Thursday to trade at ZAR18.97 vs. the FTSE/JSE- Africa Top 40 Index that is up 0.2% in the same period.

Current indications of bullish signals that support the trend in the unusual trading:

+ The positive 0.06 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The price increased 1.4% in the last week and 2.0% in the last month.

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


+ Return on Capital Employed 29.7% [5.5%]

+ Return on Assets 9.3% [3.7%]

+ Return on Equity 24.2% [10.1%]

Other Bullish Signals include:

+ Total Liabilities/EBITDA of 3.3 is comfortably below the Joseph Piotroski benchmark of <5.

+ Tobin's Q Ratio is 0.6. Compared with the rest of the market the stock is undervalued.


Alviva Holdings today is at a discount of 13.5% to the 12-month high of ZAR21.94 on 09 Apr, 2018. It is at a premium of 18.6% to the 12-month low of ZAR16.0 on 17 Jan, 2018.

The stock has underperformed 53% of the South African market over the past 6 months.

Bearish Signals:

Net profit margin has averaged 3.5% 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:


Price/Earnings/Growth of 0.6 [0.1]

Price/Earnings of 7.8 [6.7]

Alviva Holdings Limited (J:AVV; JNB:AVV; SJ:AVV)

ISIN: ZAE000227484

PermID: 4295888978