South African stock alert

SAFR

CLOSING UPDATE: Vodacom Group decreases further 1.7%, led Telecommunication sector lower 15 June 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).

Vodacom Group, South Africa's largest telecommunication company by market capitalisation, has dropped 2.9% to trade at ZAR134.55 vs. the Telecommunication sector which weakened 904.4 points (or 2.1%) to 42,829.2. Representing a weighting of about 48.2% of the sector, the stock accounted for 66.4% of today's loss. The shares have underperformed 94% of the market in the past week. Compared with the FTSE/JSE- Africa Top 40 Index which fell 212.8 points (or 0.4%) in the day, this represented a relative price change of -2.4%.

Technical indicators complementing today's significant downtrend:

+ The negative 5.85 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ In the South African market, the stock's relative price strength percentile is falling at 44 for 6 months, 17 for 3 months and 12 for 1 month.

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

+ The price tumbled 6.9% in the last week and plummeted 11.9% in the last month.

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

Overvaluation:

+ Price/Sales of 2.9 [1.6]

+ Price to Book of 15.6 [5.0]

Other Bearish Signals include:

+ Tobin's Q Ratio is 2.9. Compared with the rest of the market the stock is overvalued and ranks in the bottom 5% of stocks by value of Q Ratio.

Note

Bullish Signals:

Interest cover is less leveraged at 7.8 times.

Total Liabilities/EBITDA of 4.5 is less than the Joseph Piotroski benchmark of <5.

Net profit margin has averaged 16.4% in the last 3 years. This is considered superior and suggests a high margin of safety.

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

Undervaluation:

Price/Earnings of 15.2 [21.6]

Return on Assets 16.2% [5.8%]

Return on Capital Employed 40.5% [14.0%]

TODAY'S ALERT

Afternoon Alert: Vodacom Group decreases 1.1%, leads Telecommunication sector lower

15 June 2018 12:50 SAST

Vodacom Group Ltd. (J:VOD) has decreased 1.1% to trade at ZAR136.92 vs. the Telecommunication sector which weakened 318.8 points (or 0.7%) to 43,414.7. Representing a weighting of about 48.4% of the sector, the stock accounted for 75.6% of today's loss. The shares have underperformed 92% of the market in the past week.

RECENT ALERTS

CLOSING UPDATE: Vodacom Group increases 0.7%, led Telecommunication sector higher

14 June 2018 18:59 SAST

Vodacom Group, South Africa's largest telecommunication company by market capitalisation, has increased 0.7% to trade at ZAR138.50 vs. the Telecommunication sector which strengthened 230.1 points (or 0.5%) to 43,733.5. Representing a weighting of about 48.6% of the sector, the stock accounted for 66.7% of today's gain. Trading volume was 47% of average at the end of the day. Compared with the FTSE/JSE- Africa Top 40 Index which fell 21.8 points (or 0.04%) in the day, this represented a relative price increase of 0.8%.

Morning Alert: Vodacom Group increases 1.0%

14 June 2018 10:50 SAST

Vodacom Group Ltd. (J:VOD) traded on volume of 1.0 times average so far today while the price increased ZAR1.39 (or 1.0%) to trade at ZAR138.89.

Vodacom Group Ltd. (J:VOD; JNB:VOD; SJ:VOD)

ISIN: ZAE000132577

PermID: 4296325663

Source: www.BuySellSignals.com