South African stock alert
Morning Alert: enX Group hits 52-week low third time in one month 18 October 2017 10:50 SAST
NEWS BITES - AFRICA
enX Group Limited (J:ENX) hit a 52-week low of ZAR13.69 today for the third time in the past one month and last traded at ZAR13.69. Trading volume was 51% of average so far today.
SECTION 1: The past week
Current indications of bearish signals that support the trend in the unusual trading
1.1 At a glance
Weekly: enX Group falls for a fourth consecutive week, a four-week fall of 14.5% October 17, 2017 17:00 SAST
enX Group Limited (J:ENX) has fallen ZAR1.86 (or 11.8%) on high volume to close at ZAR13.89. The stock fell for a fourth consecutive week on Tuesday bringing its a four-week fall to ZAR2.36 or 14.5%. Compared with the FTSE/JSE- Africa Top 40 Index which rose 1,758.5 points (or 3.5%) in the four weeks, this represented a relative price change of -18.1%. The volume was 0.2 times average trading per week of 571,785 shares. In the past four weeks the market cap has slumped ZAR425.8 million.
1.2 5-day Recap
enX Group underperformed the FTSE/JSE: AFRICA TOP 40 index in 5 out of 5 days.
|Day||Headline||Close price [ZAR]||Price change %||Relative change %||Comment|
|Tuesday||enX Group hits year-low 2nd time in one month||13.89||-2.5||-2.1|
|Monday||enX Group keeps sliding, down 9.6% in 4 days||14.24||-4.7||-5.3||Steepest Fall|
|Friday||enX Group decreases, sinks 4.8% for week||14.95||-0.3||-0.5|
|Thursday||enX Group down 4.8% in 2 days||15.0||-1.3||-1.1|
|Wednesday||enX Group continues significant downtrend; drops 3.5%||15.2||-3.5||-3.6|
SECTION 2: Technical indicators
The negative 0.49 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal (12-day minus 26-day Exponential Moving Averages). Both the 12-day and the 26-day EMA are falling - another bearish signal. In the past week, the stock's MACD has been negative every day, a reinforcing bearish signal.
In the South African market, the stock's relative price strength percentile is slipping at 17 for 6 months, 9 for 3 months and 3 for 1 month.
The price plummeted 15.8% in the last month.
The present value of ZAR1,000 invested one year ago is ZAR656 [vs ZAR1,154 for the FTSE/JSE- Africa Top 40 Index], for a capital loss of ZAR344. The total return to shareholders for 1 year is -34.4%.
Fundamental measures by comparison with the sector average [in brackets] indicate:
Price/Sales of 2.1 [0.4]
Price to Book of 6.1 [1.0]
SECTION 3: Ranking
|Description||Value||Rank In Market|
|52-week Range (in ZAR)||13.7-21.0|
|1-month Range (in ZAR)||13.7-16.2|
SECTION 4: Earnings
FY2016 Annual Report: enX Group Revenue up 31.2%
enX Group (J:ENX) reported total revenue for the year-ended 31 August 2016 of ZAR1.2b ($US79.7m), up 31.2% from ZAR889m ($US66.8m) in the previous year.
Major changes compared with previous year:
- Total revenue up 31.2% from ZAR889.2m ($US66.8m) to ZAR1.2b ($US79.7m)
- Current ratio up 8.5% from 1.6 to 1.8
- Working capital to total assets up from 28.5% to 30.9%
- Total non-current assets to Total Assets up from 27.9% to 29.8%
- Total revenue to total assets down from 1.0 to 0.8
- Cost of Goods Sold to Sales up from 71.2% to 76.5%
- Interest expenses to Sales up from 0.5% to 1%
- Debt to Equity up 72% from 0.2 to 0.4
- Retained earnings to total assets down from 13.1% to 3.7%
- Total current assets to Total Assets down from 72.1% to 70.2%
- Total Liabilities to Operating Cash Flow of 59.9 compares unfavourably with the Joseph Piotroski benchmark of less than 4
- Tax expenses to Sales down from 1.3% to 0.5%
- Total liabilities to Total assets steady at 0.5
- Current Inventory to Total Assets down from 40% to 38.1%
- Current Debtors to Total Assets down from 28.2% to 27.8%
- Intangibles to Total Assets up from 16.7% to 19.6%
SECTION 5: Recent News of enX Group
October 03: Enx Group Limited - Finalisation Announcement In Respect Of The Unbundling
Shareholders are referred to the announcements released on SENS (the last of which was released on 28 September 2017) in respect of the restructure and recapitalisation (the "restructure") of eXtract Group Limited ("eXtract") and the proposed unbundling and distribution by enX of 3 861 041 279 eXtract shares to enX shareholders in the ratio of 21.39799 eXtract shares for every one enX share held (the "unbundling").
September 29: Enx Group Limited - Voluntary Update And Trading Statement
Shareholders are advised that enX is anticipating adjusted headline earnings per share ("adjusted HEPS") for the year ended 31 August 2017 to be between 175 cents per share and 190 cents per share. Adjusted HEPS reflects sustainable earnings generated by enX's industrial businesses. It excludes any interest income earned and fair value adjustments arising from its equity and debt investments in eXtract Group Limited ("eXtract") (collectively "eXtract Investments"). This compares to the industrial earnings of 187 cents per share included in the adjusted HEPS forecast for the year ended 31 August 2017 (as disclosed in the SENS published on 30 June 2016).
September 28: Extract Group Limited - Extract Group Ltd/enx Group Ltd - Fulfillment Of Conditions Precedent To The Restructure
Shareholders are referred to the announcements released on SENS relating to, inter alia, the restructure and
recapitalisation of eXtract (the 'restructure') the last of which announcements was released on SENS on
12 September 2017.
enX and eXtract are pleased to inform shareholders that all conditions precedent to the restructure have been fulfilled
and the restructure will now be implemented.
August 29: Enx Group Limited - Update In Respect Of Salient Dates For The Restructure And Unbundling
Shareholders are referred to the announcements released on SENS in respect of the restructure and recapitalisation of eXtract Group Limited ("eXtract") (the "restructure") and the subsequent unbundling and distribution by enX of 3 861 041 279 eXtract shares to enX shareholders in the ratio of 21.39799 eXtract shares for every one enX share held (the "unbundling"), the last of which announcements was released on SENS on 11 August 2017.
Shareholders are advised that conditions precedent to the restructure have not yet been fulfilled due to delays in obtaining a regulatory ruling and finalising certain commercial arrangements.
August 29: Enx Group Limited - Notification In Terms Of Section 45(5) Of The Companies Act 71 Of 2008
NOTIFICATION IN TERMS OF SECTION 45(5) OF THE COMPANIES ACT 71 OF 2008
1. Notice is hereby given that, in terms of the provisions of section 45(5) of the Companies Act 71 of 2008 (the "Companies Act"), and pursuant to the special resolution passed at the annual general meeting of the Company held on Wednesday, 29 March 2017, the board of directors of the company (the "board") has adopted a resolution to provide financial assistance to Friedshelf 1320 Proprietary Limited ("Friedshelf") by the issuance of a guarantee by the Company in respect of certain loan and banking facilities being made available to Friedshelf by the financing parties, which constitutes direct and/or indirect financial assistance in terms of the provisions of section 45(5) of the Companies Act.
enX Group Limited (J:ENX; JNB:ENX; SJ:ENX)