Australia Stock Alert

AUSTR

CLOSING UPDATE: CIMIC Group increases 0.9% - outperforming 81% of stocks October 20, 2017 16:00:00 AEST

NEWS BITES - AUSTRALIA

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

CIMIC Group, Australia's largest capital goods company by market capitalisation, has increased 40.0c (or 0.9%) today to trade at $A46.59 and has outperformed 81% of the market in the past six months. A price rise combined with a high relative strength is a bullish signal. Compared with the All Ordinaries Index which rose 8.8 points (or 0.1%) in the day, this represented a relative price increase of 0.7%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.98 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

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

+ The present value of AUD1,000 invested one year ago is $A1,630 [vs $A1,080 for the All Ordinaries Index].

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

Undervaluation:

+ Return on Equity 17.5% [3.5%]

+ Return on Assets 5.5% [1.5%]

+ Return on Capital Employed 18% [6.8%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 8.3 times.

+ Tobin's Q Ratio is 1.5. Compared with the rest of the market the stock is undervalued.

+ As per the Du Pont analysis, Return on Equity of 17.5% is better than sector average of 3.5%.

Note

Bearish Signals:

Net profit margin has averaged 4.3% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

Overbought/Bearish:

The 1.8% discount to 12-month high of $A47.42 against the 71.7% premium to 12-month low of $A27.13 suggests the climb might be peaking.

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

Overvaluation:

Price/Sales of 1.4 [1.1]

Price to Book of 6.9 [3.7]

TODAY'S ALERT

Morning Alert: CIMIC Group decreases 0.4%

October 20, 2017 11:00:00 AEST

CIMIC Group Limited (ASX:CIM) has decreased 19.0c (or 0.4%) to trade at $A46.0.

RECENT ALERTS

CLOSING UPDATE: CIMIC Group down 2.8% in 2 days

October 18, 2017 16:00:00 AEST

CIMIC Group, Australia's largest capital goods company by market capitalisation, extended its slide on Wednesday, shedding an additional $A1.09 (or 2.3%) to trade at $A45.77. Trading volume was 1.3 times average at the end of the day. The shares have fallen $A1.33 (or 2.8%) over the past two trading days vs. the All Ordinaries Index which has risen 0.6% in the same period.

Afternoon Alert: CIMIC Group down 3.2% in 2 days

October 18, 2017 13:00:00 AEST

CIMIC Group Limited (ASX:CIM) extended its slide on Wednesday, shedding an additional $A1.25 (or 2.7%) to trade at $A45.61. The shares have fallen $A1.49 (or 3.2%) over the past two trading days vs. the All Ordinaries Index which has risen 0.9% in the same period.

CIMIC Group Limited (AU:CIM; ASX:CIM; AX:CIM)

ISIN: AU000000CIM7

PermID: 4295857469

Source: www.BuySellSignals.com