South African stock alert

SAFR

CLOSING UPDATE: MTN Group keeps rising: up 3.4% in 3 days 21 July 2017 18:57 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).

MTN Group, South Africa's 2nd largest telecommunication company by market capitalisation, extended its gains on Friday, rising an additional ZAR1.72 (or 1.4%) to trade at ZAR125.18. Trading volume was 75% of average at the end of the day. The shares have risen ZAR4.08 (or 3.4%) over the past three trading days vs. the FTSE/JSE- Africa Top 40 Index which has risen 1.9% in the same period.

Technical indicators complementing today's significant uptrend:

+ The positive 2.11 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the South African market, the stock's relative price strength percentile is improving at 62 for 6 months, 66 for 3 months and 88 for 1 month.

+ The price lifted 3.3% in the last week and soared 11.0% in the last month.

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

Undervaluation:

+ Price/Sales of 1.6 [2.0]

+ Price to Book of 4 [5.6]

Other Bullish Signals include:

+ The company is cash rich with Cash to Market Capitalisation at 11.6%.

+ Total Liabilities/EBITDA of 4 is less than the Joseph Piotroski benchmark of <5.

+ Tobin's Q Ratio is 0.9. Compared with the rest of the market the stock is undervalued.

+ The Brand Value represents an impressive 23.0% of the estimated Enterprise Value of ZAR294.9 billion (US$22.5 billion).

Note

MTN Group today is at a discount of 17.4% to the 12-month high of ZAR151.50 on 26 Jul, 2016. It is at a premium of 19.5% to the 12-month low of ZAR104.76 on 21 Oct, 2016.

Bearish Signals:

Net profit margin has averaged 11.5% in the last 3 years. This is lower than the sector average of 14.2% and suggests a low margin of safety.

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

Overvaluation:

Return on Capital Employed 2.7% [10.8%]

TODAY'S ALERT

Morning Alert: MTN Group in 3rd consecutive rise, nears four-month high

21 July 2017 10:50 SAST

MTN Group Limited (J:MTN) extended its gains Friday, rising an additional ZAR2.59 (or 2.1%) to trade at ZAR126.05. The stock increased 0.59% on Wednesday and 1.35% on Thursday bringing its 3-day rise to 4.1%. It is now approaching its 78-day high of ZAR126.09.

RECENT ALERTS

CLOSING UPDATE: MTN Group increased 0.6%

19 July 2017 18:57 SAST

MTN Group, South Africa's 2nd largest telecommunication company by market capitalisation, traded on volume of 0.5 times average today while the price increased 71.21c (or 0.6%) to trade at ZAR121.81. Compared with the FTSE/JSE- Africa Top 40 Index which rose 820.8 points (or 1.8%) in the day, this represented a relative price change of -1.2%.

Afternoon Alert: MTN Group decreases 0.9%, leads Telecommunication sector lower

19 July 2017 12:50 SAST

MTN Group Limited (J:MTN) has decreased 0.9% to trade at ZAR119.99 vs. the Telecommunication sector which weakened 50.1 points (or 0.1%) to 47,485.4. Representing a weighting of about 42.4% of the sector, the stock accounted for the loss. Trading volume was 74% of average so far today.

MTN Group Limited (J:MTN; JNB:MTN; SJ:MTN)

ISIN: ZAE000042164

PermID: 4295888681

Source: www.BuySellSignals.com