South African stock alert

SAFR

CLOSING UPDATE: Bid Corporation decreases 1.4%, led Food processors 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).

Bid Corporation, South Africa's largest food processor company by market capitalisation, has decreased 1.4% to trade at ZAR276.10 vs. the Food processors sector which weakened 481.6 points (or 0.5%) to 89,576.7. Representing a weighting of about 39.3% of the sector, the stock accounted for the loss. Trading volume was 2.2 times average at the end of the day. 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 -1.0%.

Technical indicators complementing today's significant downtrend:

+ The negative 0.68 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

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

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

Overvaluation:

+ Price/Earnings of 22.9 [4.5]

+ Price/Sales of 0.7 [0.4]

+ Price to Book of 9.4 [1.2]

+ Dividend yield of 1.5% [2.3%]

+ Return on Equity 17.2% [20.2%]

+ Return on Assets 7.4% [12.2%]

+ Return on Capital Employed 18.4% [25.0%]

Other Bearish Signals include:

+ As per the Du Pont analysis, Return on Equity of 17.2% is lower than sector average of 20.2%.

Note

Bid Corporation today is at a discount of 14.8% to the 12-month high of ZAR324.0 on 03 Aug, 2017. It is at a premium of 13.8% to the 12-month low of ZAR242.67 on 04 Apr, 2018.

Bullish Signals:

The price climbed 4.7% in the last week and increased 1.1% in the last month.

Interest cover is less leveraged at 17.7 times.

Tobin's Q Ratio is 1.7. Compared with the rest of the market the stock is undervalued.

TODAY'S ALERT

Morning Alert: Bid Corporation increases 1.1%, leads Food processors sector higher

15 June 2018 10:50 SAST

Bid Corporation Ltd (J:BID) has increased 1.1% to trade at ZAR283.26 vs. the Food processors sector which strengthened 752.0 points (or 0.8%) to 90,810.3. Representing a weighting of about 39.7% of the sector, the stock accounted for 54.0% of today's gain. The shares have outperformed 96% of the market in the past week. Trading volume was 1.5 times average so far today.

RECENT ALERTS

CLOSING UPDATE: Bid Corporation climbs 5.2% on firm volume

13 June 2018 19:00 SAST

Bid Corporation, South Africa's largest food processor company by market capitalisation, traded on heavy volume of 1.1 times average today while the price climbed ZAR13.70 (or 5.2%) to trade at ZAR278.20. Compared with the FTSE/JSE- Africa Top 40 Index which rose 290.6 points (or 0.6%) in the day, this represented a relative price increase of 4.6%.

Morning Alert: Bid Corporation lifts 3.4%, leads Food processors sector higher

13 June 2018 10:51 SAST

Bid Corporation Ltd (J:BID) has lifted 3.4% to trade at ZAR273.50 vs. the Food processors sector which strengthened 1,036.3 points (or 1.2%) to 87,903.7. Representing a weighting of about 39.6% of the sector, the stock accounted for the gain. The shares have outperformed 88% of the market in the past week. Trading volume was 1.2 times average so far today.

Bid Corporation Ltd (J:BID; JNB:BID; SJ:BID)

ISIN: ZAE000216537

Source: www.BuySellSignals.com