Australia Stock Alert


CLOSING UPDATE: Newcrest Mining decreases 1.0%, led S&P/ASX All Ordinaries Gold lower October 20, 2017 16:00:00 AEST


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).

Newcrest Mining, Australia's 5th largest materials company by market capitalisation, has decreased 1.0% to trade at $A21.58 vs. the S&P/ASX All Ordinaries Gold which weakened 29.5 points (or 0.7%) to 4,485.9. Representing a weighting of about 48.0% of the index, the stock accounted for 70.9% of today's loss. Trading volume was 57% of average at the end of the day. Compared with the All Ordinaries Index which rose 8.8 points (or 0.1%) in the day, this represented a relative price change of -1.1%.

Technical indicators complementing today's significant downtrend:

+ The negative 0.03 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The price decreased 1.3% in the last week and sank 4.3% in the last month.

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


+ Price/Sales of 4.8 [2.2]

+ Dividend yield of 0.9% [3.6%]

+ Return on Equity 4.4% [8.2%]

+ Return on Assets 2.8% [4.0%]

+ Return on Capital Employed 5.6% [9.1%]

Other Bearish Signals include:

+ As per the Du Pont analysis, Return on Equity is less than stellar at 4.4%. Also, this has deteriorated from 4.8% last year.


Newcrest Mining today is at a discount of 14.9% to the 12-month high of $A25.35 on 09 Nov, 2016. It is at a premium of 33.1% to the 12-month low of $A16.21 on 16 Dec, 2016.

Bullish Signals:

Tobin's Q Ratio is 1.4. Compared with the rest of the market the stock is undervalued.

Net profit margin has averaged 10% in the last 3 years. This is better than the sector average of 8.5% and suggests a high margin of safety.


Morning Alert: Newcrest Mining decreases 0.3%

October 20, 2017 11:00:00 AEST

Newcrest Mining Limited (ASX:NCM) has decreased 6.0c (or 0.3%) to trade at $A21.73.

Newcrest Mining Limited (AU:NCM; ASX:NCM; AX:NCM)

ISIN: AU000000NCM7

PermID: 4295857460