Australia Stock Alert

AUSTR

CLOSING UPDATE: Telstra decreases 1.4%, led S&P/ASX 200 Telecommunication Services index lower January 19, 2018 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).

Telstra, Australia's largest telecommunication company by market capitalisation, has decreased 1.4% to trade at $A3.57 vs. the S&P/ASX 200 Telecommunication Services index which weakened 20.1 points (or 1.5%) to 1,286.2. Representing a weighting of about 75.5% of the index, the stock accounted for 67.7% of today's loss. Compared with the All Ordinaries Index which fell 24.7 points (or 0.4%) in the day, this represented a relative price change of -1.0%.

Technical indicators complementing today's significant downtrend:

+ In the last three months the stock has hit a new 52-week low once.

+ The price sank 4.5% in the last week and dropped 3.5% in the last month.

Other Bearish Signals include:

+ Net profit margin has averaged 14.7% in the last 3 years. This is lower than the sector average of 17% and suggests a low margin of safety.

Note

Telstra today is at a discount of 26.5% to the 12-month high of $A4.86 on 14 Feb, 2017. It is at a premium of 6.9% to the 12-month low of $A3.34 on 28 Nov, 2017.

Bullish Signals:

Interest cover is less leveraged at 8.7 times.

Total Liabilities/EBITDA of 2.5 is comfortably below the Joseph Piotroski benchmark of <5.

Tobin's Q Ratio is 1. Compared with the rest of the market the stock is undervalued.

The Brand Value represents an impressive 12.7% of the estimated Enterprise Value of $A59.8 billion.

As per the Du Pont analysis, Return on Equity is high at 26.5%. Also, this has improved from 24.6% last year.

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

Undervaluation:

Price/Earnings of 11.0 [19.2]

Dividend yield of 8.7% [6.9%]

Return on Equity 26.5% [13.9%]

Return on Assets 9.2% [5.3%]

Return on Capital Employed 19.3% [13.4%]

TODAY'S ALERTS

Afternoon Alert: Telstra decreases 1.2% - underperforming 81% of stocks

January 19, 2018 13:00:00 AEST

Telstra Corporation Limited (ASX:TLS) has decreased 4.50c (or 1.2%) today to trade at $A3.58 and has underperformed 81% of the market in the past six months.

Morning Alert: Telstra decreases 0.8%, leads market lower

January 19, 2018 11:00:00 AEST

Telstra Corporation Limited (ASX:TLS) has decreased 0.8% to trade at $A3.59 vs. the All Ordinaries Index which weakened 0.4 points (or 0.01%) to 6,143.6. Representing a weighting of about 2.1% of the index, the stock accounted for the loss. The shares have underperformed 82% of the market in the past week.

RECENT ALERTS

CLOSING UPDATE: Telstra decreases further 0.4% - underperforming 82% of stocks

January 17, 2018 16:00:00 AEST

Telstra, Australia's largest telecommunication company by market capitalisation, has decreased 5.0c (or 1.4%) today to trade at $A3.60 and has underperformed 82% of the market in the past six months. Compared with the All Ordinaries Index which fell 31.6 points (or 0.5%) in the day, this represented a relative price change of -0.9%.

Afternoon Alert: Telstra decreases 1.0% - underperforming 82% of stocks

January 17, 2018 13:00:00 AEST

Telstra Corporation Limited (ASX:TLS) has decreased 3.50c (or 1.0%) today to trade at $A3.62 and has underperformed 82% of the market in the past six months.

Telstra Corporation Limited (AU:TLS; ASX:TLS; AX:TLS)

ISIN: AU000000TLS2

PermID: 4295857009

Source: www.BuySellSignals.com