South African stock alert

SAFR

CLOSING UPDATE: Mondi up 3.5% in 2 days 19 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).

Mondi, South Africa's largest forest products & paper company by market capitalisation, extended its gains on Friday, rising an additional ZAR5.39 (or 1.6%) to trade at ZAR333.86. Trading volume was 48% of average at the end of the day. The shares have risen ZAR11.16 (or 3.5%) over the past two trading days vs. the FTSE/JSE- Africa Top 40 Index which has fallen 0.02% in the same period.

Technical indicators complementing today's significant uptrend:

+ The positive 1.95 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The price increased 1.8% in the last week and jumped 8.0% in the last month.

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

Undervaluation:

+ Return on Equity 21.6% [18.9%]

+ Return on Assets 9.4% [8.2%]

Other Bullish Signals include:

+ Tobin's Q Ratio is 1.1. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 10.7% in the last 3 years. This is better than the sector average of 10.4% and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity is high at 21.6%.

Note

The stock has underperformed 56% of the South African market over the past 6 months.

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

Overvaluation:

Price/Earnings of 17.0 [9.3]

Price/Sales of 1.2 [1.1]

Price to Book of 3.1 [2.3]

Year-on-Year Earnings Growth of 6.5% [14.9%]

TODAY'S ALERT

Afternoon Alert: Mondi up 2.6% in 2 days

19 January 2018 12:53 SAST

Mondi PLC (J:MNP) extended its gains on Friday, rising an additional ZAR2.61 (or 0.8%) to trade at ZAR331.08. Trading volume was 57% of average so far today. The shares have risen ZAR8.38 (or 2.6%) over the past two trading days vs. the FTSE/JSE- Africa Top 40 Index which has fallen 0.2% in the same period.

Mondi PLC (J:MNP; JNB:MNP; SJ:MNP)

ISIN: GB00B1CRLC47

Source: www.BuySellSignals.com