South African stock alert

SAFR

CLOSING UPDATE: Remgro decreases further 0.3%, led Diversified industrials sector lower 21 September 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).

Remgro, South Africa's largest diversified industrials company by market capitalisation, has decreased 1.6% to trade at ZAR205.73 vs. the Diversified industrials sector which weakened 561.6 points (or 1.8%) to 31,020.0. Representing a weighting of about 69.7% of the sector, the stock accounted for 61.3% of today's loss. Trading volume was 1.3 times average at the end of the day. Compared with the FTSE/JSE- Africa Top 40 Index which rose 590.0 points (or 1.2%) in the day, this represented a relative price change of -2.7%.

Technical indicators complementing today's significant downtrend:

+ The negative 0.02 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

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

+ The price decreased 2.0% in the last week.

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

Overvaluation:

+ Price/Sales of 3.7 [1.2]

+ Return on Equity 1.1% [7.8%]

+ Return on Assets 0.8% [6.0%]

+ Return on Capital Employed 2.1% [5.1%]

Other Bearish Signals include:

+ Net profit margin has averaged 2.4% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

+ As per the Du Pont analysis, Return on Equity is less than stellar at 1.1%.

Note

Remgro today is at a discount of 17.0% to the 12-month high of ZAR247.99 on 26 Jan, 2018. It is at a premium of 9.3% to the 12-month low of ZAR188.30 on 28 Jun, 2018.

Bullish Signals:

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

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

Undervaluation:

Price to Book of 1.2 [1.4]

TODAY'S ALERT

Afternoon Alert: Remgro decreases 1.3%, leads Diversified industrials sector lower

21 September 2018 12:51 SAST

Remgro Limited (J:REM) has decreased 1.3% to trade at ZAR206.33 vs. the Diversified industrials sector which weakened 289.6 points (or 0.9%) to 31,292.0. Representing a weighting of about 69.3% of the sector, the stock accounted for 96.3% of today's loss. Trading volume was 33% of average so far today.

Remgro Limited (J:REM; JNB:REM; SJ:REM)

ISIN: ZAE000026480

PermID: 4295888648

Source: www.BuySellSignals.com