Russian stock alert

RUSS

CLOSING UPDATE: Severstal drops further 2.1%, led market lower 18 June 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, has tumbled 7.5% to trade at RUB968.70 vs. the MOEX Russia Index which weakened 10.8 points (or 0.5%) to 2,230.1. Representing a weighting of about 2.5% of the index, the stock accounted for 39.3% of today's loss. The shares have underperformed 93% of the market in the past week. Trading volume was 2.1 times average at the end of the day. Compared with the MOEX Russia Index which fell 10.8 points (or 0.5%) in the day, this represented a relative price change of -7.0%.

Technical indicators complementing today's significant downtrend:

+ The price tumbled 7.6% in the last week.

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

Overvaluation:

+ Price/Sales of 2.2 [1.2]

+ Price to Book of 4.6 [4.0]

Other Bearish Signals include:

+ Tobin's Q Ratio is 2. 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 6.4% and suggests a low margin of safety.

Note

Severstal today is at a discount of 8.0% to the 12-month high of RUB1,053.30 on 13 Jun, 2018. It is at a premium of 47.8% to the 12-month low of RUB655.53 on 19 Jun, 2017.

Bullish Signals:

The positive 8.32 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

In the last three months the stock has hit a new 52-week high ten times, pointing to a significant uptrend.

The present value of RUB1,000 invested one year ago is RUB1,655 [vs RUB1,225 for the MOEX Russia Index].

Interest cover is less leveraged at 11.7 times.

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

Undervaluation:

Dividend yield of 7.7% [3.4%]

Return on Assets 25% [14.3%]

Return on Capital Employed 40% [12.7%]

TODAY'S ALERT

Morning Alert: Severstal sinks 5.5%, leads market lower

18 June 2018 11:38 SAMT

Severstal (MICEX:CHMF) has sunk 5.5% to trade at RUB989.10 vs. the MOEX Russia Index which weakened 7.0 points (or 0.3%) to 2,233.9. Representing a weighting of about 2.6% of the index, the stock accounted for 45.8% of today's loss. The shares have underperformed 92% of the market in the past week. Trading volume was 3.5 times average so far today.

RECENT ALERTS

CLOSING UPDATE: Severstal increases 1.5%, led Iron/Steel sector higher

15 June 2018 19:47 SAMT

Severstal, Russia's largest iron/steel company by market capitalisation, has increased 1.5% to trade at RUB1,047.0 vs. the Iron/Steel sector which strengthened 14.5 points (or 0.8%) to 1,831.7. Representing a weighting of about 34.6% of the sector, the stock accounted for 66.2% of today's gain. The shares have outperformed 87% of the market in the past week. Trading volume was 1.9 times average at the end of the day. Compared with the MOEX Russia Index which fell 16.4 points (or 0.7%) in the day, this represented a relative price increase of 2.3%.

Afternoon Alert: Severstal increases 0.8% on robust volume

15 June 2018 14:06 SAMT

Severstal (MICEX:CHMF) traded on heavy volume of 1.4 times average so far today while the price increased RUB8.30 (or 0.8%) to trade at RUB1,039.50.

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

ISIN: RU0009046510

PermID: 4295887053

Source: www.BuySellSignals.com