Russian stock alert

RUSS

CLOSING UPDATE: MegaFon decreases 0.7% - underperforming 92% of stocks 21 September 2018 19:45 SAMT

NEWS BITES - BRIC

This is an end of day Alert, produced after today's Russian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

MegaFon, Russia's 2nd largest telecommunication company by market capitalisation, has decreased RUB3.80 (or 0.7%) today to trade at RUB579.20 and has underperformed 92% of the market in the past month. Compared with the MOEX Russia Index which rose 8.9 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 1.25 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The price plummeted 10.7% in the last month.

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

Overvaluation:

+ Price/Earnings of 72.4 [15.6]

+ Return on Equity 3.7% [13.0%]

+ Return on Assets 0.9% [4.2%]

+ Return on Capital Employed 9.1% [12.8%]

Other Bearish Signals include:

+ As per the Du Pont analysis, Return on Equity is less than stellar at 3.7%. Also, this has deteriorated from 20.7% last year.

Note

MegaFon today is at a discount of 12.6% to the 12-month high of RUB663.0 on 02 Oct, 2017. It is at a premium of 33.1% to the 12-month low of RUB435.0 on 10 Apr, 2018.

Bullish Signals:

Total Liabilities/EBITDA of 3.5 is comfortably below the Joseph Piotroski benchmark of <5.

Tobin's Q Ratio is 0.6. Compared with the rest of the market the stock is undervalued.

The Brand Value represents an impressive 27.8% of the estimated Enterprise Value of RUB678.8 billion (US$10.2 billion).

TODAY'S ALERT

Morning Alert: MegaFon decreases 0.3%

21 September 2018 11:38 SAMT

MegaFon PJSC (MICEX:MFON) traded on volume of 0.1 times average so far today while the price decreased RUB1.60 (or 0.3%) to trade at RUB581.40.

RECENT ALERTS

CLOSING UPDATE: MegaFon keeps rising: up 4.6% in 3 days

18 September 2018 19:44 SAMT

MegaFon, Russia's 2nd largest telecommunication company by market capitalisation, extended its gains on Tuesday, rising an additional RUB8.70 (or 1.5%) to trade at RUB585.90. Trading volume was 42% of average at the end of the day. The shares have risen RUB25.50 (or 4.6%) over the past three trading days vs. the MOEX Russia Index which has risen 1.7% in the same period.

Morning Alert: MegaFon increases 1.2% on spectacular volume

18 September 2018 11:38 SAMT

MegaFon PJSC (MICEX:MFON) traded on heavy volume of 8.2 times average so far today while the price increased RUB6.70 (or 1.2%) to trade at RUB583.90.

MegaFon PJSC (M:MFON; MCX:MFON; MM:MFON; RM:MFON)

ISIN: RU000A0JS942

PermID: 4297202772

Source: www.BuySellSignals.com