South African stock alert


CLOSING UPDATE: Invicta Holdings keeps sliding: down 10.9% in 3 days 18 June 2018 19:02 SAST


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).

Invicta Holdings, South Africa's 2nd largest auto parts company by market capitalisation, extended its slide on Monday, shedding an additional ZAR3.30 (or 8.2%) to trade at ZAR36.75. Trading volume was 2.6 times average at the end of the day. The shares have fallen ZAR4.50 (or 10.9%) over the past three trading days vs. the FTSE/JSE- Africa Top 40 Index which has fallen 2.3% in the same period.

Technical indicators complementing today's significant downtrend:

+ The negative 1.64 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The 5.0% premium to 12-month low of ZAR35.0 against the 36.6% discount to high of ZAR58.0 suggests the stock continues to push for new lows.

+ The stock has underperformed 81% of the South African market over the past 6 months.

+ In the last one month the stock has hit a new 52-week low four times and in the last three months five times, pointing to a downtrend.

+ The price tumbled 8.8% in the last week and plummeted 17.7% in the last month.

+ The present value of ZAR1,000 invested one year ago is ZAR665 [vs ZAR1,146 for the FTSE/JSE- Africa Top 40 Index].

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


+ Return on Equity 11.2% [12.8%]

+ Return on Assets 3.5% [5.1%]

Other Bearish Signals include:

+ Net profit margin has averaged 5.6% in the last 3 years. This is lower than the sector average of 5.7% and suggests a low margin of safety.

+ As per the Du Pont analysis, Return on Equity of 11.2% is lower than sector average of 12.8%.


Bullish Signals:

The company is cash rich with Cash to Market Capitalisation at 44.2%.

Tobin's Q Ratio is 0.2. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stock by value of Q Ratio.

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


Price/Earnings of 7.4 [8.4]

Price/Sales of 0.4 [0.5]

Price to Book of 0.9 [1.5]

Year-on-Year Earnings Growth of 26% [18.0%]


Afternoon Alert: Invicta Holdings hits 52-week low fourth time in one month

18 June 2018 12:50 SAST

Invicta Holdings Limited (J:IVT) hit a 52-week low of ZAR35.0 earlier today for the fourth time in the past one month, but later rebounded higher to ZAR37.79. Trading volume was 1.5 times average so far today.

Invicta Holdings Limited (J:IVT; JNB:IVT; SJ:IVT)

ISIN: ZAE000029773

PermID: 4295888644