Russian stock alert

RUSS

CLOSING UPDATE: Severstal hits 52-week high ninth time in one month 20 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).

Severstal, Russia's 2nd largest iron/steel company by market capitalisation, hit a 52-week high of RUB1,113.0 today for the ninth time in the past one month and last traded at RUB1,103.60. This brought its two-day rise to RUB25.50 or 2.4%. Trading volume was 1.9 times average at the end of the day. Compared with the MOEX Russia Index which rose 9.1 points (or 0.4%) in the day, this represented a relative price increase of 0.7%.

Technical indicators complementing today's significant uptrend:

+ The positive 14.71 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The stock has outperformed 95% of the Russian market over the past 6 months.

+ In the last one month the stock has hit a new 52-week high nine times and in the last three months fifteen times, pointing to a significant uptrend.

+ The price increased 1.3% in the last week and climbed 5.6% in the last month.

+ The present value of RUB1,000 invested one year ago is RUB1,463 [vs RUB1,170 for the MOEX Russia Index].

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

Undervaluation:

+ Return on Assets 25% [11.4%]

+ Return on Capital Employed 40% [23.3%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 11.7 times.

Note

Bearish Signals:

Tobin's Q Ratio is 2.1. Compared with the rest of the market the stock is overvalued and ranks in the bottom 9% of stocks by value of Q Ratio.

Net profit margin has averaged 5.6% in the last 3 years. This is lower than the sector average of 12.9% and suggests a low margin of safety.

Overbought/Bearish:

The 0.8% discount to 12-month high of RUB1,113.0 against the 49.7% premium to 12-month low of RUB737.08 suggests the climb might be peaking.

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

Overvaluation:

Price to Book of 4.9 [4.0]

TODAY'S ALERT

Morning Alert: Severstal increases 0.1%

20 September 2018 11:38 SAMT

Severstal (MICEX:CHMF) traded on volume of 0.8 times average so far today while the price increased RUB1.40 (or 0.1%) to trade at RUB1,087.80.

RECENT ALERTS

CLOSING UPDATE: Severstal increases 0.8%, led Iron/Steel sector higher

19 September 2018 19:45 SAMT

Severstal, Russia's 2nd largest iron/steel company by market capitalisation, has increased 0.8% to trade at RUB1,086.40 vs. the Iron/Steel sector which strengthened 12.8 points (or 0.7%) to 1,860.8. Representing a weighting of about 35.3% of the sector, the stock accounted for 39.4% of today's gain. The shares have outperformed 86% of the market in the past three months. Trading volume was 86% of average at the end of the day. Compared with the MOEX Russia Index which fell 1.9 points (or 0.08%) in the day, this represented a relative price increase of 0.8%.

Morning Alert: Severstal increases 0.5% on robust volume

19 September 2018 11:38 SAMT

Severstal (MICEX:CHMF) traded on heavy volume of 1.5 times average so far today while the price increased RUB4.90 (or 0.5%) to trade at RUB1,083.0.

Severstal (M:CHMF; MCX:CHMF; MM:CHMF; RM:CHMF)

ISIN: RU0009046510

PermID: 4295887053

Source: www.BuySellSignals.com