Australia Stock Alert

AUSTR

CLOSING UPDATE: Treasury Wine Estates keeps rising: up 3.4% in 3 days January 18, 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).

Treasury Wine Estates, Australia's largest food, beverage & tobacco company by market capitalisation, extended its gains on Thursday, rising an additional 13.0c (or 0.9%) to trade at $A15.10. Trading volume was 87% of average at the end of the day. The shares have risen 49.0c (or 3.4%) over the past three trading days vs. the All Ordinaries Index which has fallen 0.7% in the same period.

Technical indicators complementing today's significant uptrend:

+ 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 $A1,414 [vs $A1,072 for the All Ordinaries Index].

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

Undervaluation:

+ Return on Equity 7.5% [5.9%]

+ Return on Assets 5.1% [3.1%]

+ Return on Capital Employed 9.6% [7.9%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 9.2 times.

+ Total Liabilities/EBITDA of 3.8 is comfortably below the Joseph Piotroski benchmark of <5.

+ Net profit margin has averaged 7.3% in the last 3 years. This is better than the sector average of 5.3% and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity is less than stellar at 7.5%.

Note

Treasury Wine Estates today is at a discount of 8.8% to the 12-month high of $A16.55 on 20 Dec, 2017. It is at a premium of 41.9% to the 12-month low of $A10.64 on 20 Jan, 2017.

The stock has outperformed 57% of the Australian market over the past 6 months.

Bearish Signals:

The negative 0.25 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

The price tumbled 6.1% in the last month.

Tobin's Q Ratio is 2.1. Compared with the rest of the market the stock is overvalued.

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

Overvaluation:

Price/Earnings of 41.8 [29.3]

Price/Sales of 4.4 [1.0]

Price to Book of 4.4 [2.4]

TODAY'S ALERT

Morning Alert: Treasury Wine Estates keeps rising: up 3.6% in 3 days

January 18, 2018 11:00:00 AEST

Treasury Wine Estates Limited (ASX:TWE) extended its gains on Thursday, rising an additional 16.0c (or 1.1%) to trade at $A15.13. The shares have risen 52.0c (or 3.6%) over the past three trading days vs. the All Ordinaries Index which has fallen 0.6% in the same period.

RECENT ALERTS

CLOSING UPDATE: Treasury Wine Estates up 2.5% in 2 days

January 17, 2018 16:00:00 AEST

Treasury Wine Estates, Australia's largest food, beverage & tobacco company by market capitalisation, extended its gains on Wednesday, rising an additional 2.0c (or 0.1%) to trade at $A14.97. Trading volume was 94% of average at the end of the day. The shares have risen 36.0c (or 2.5%) over the past two trading days vs. the All Ordinaries Index which has fallen 0.9% in the same period.

Afternoon Alert: Treasury Wine Estates up 2.7% in 2 days

January 17, 2018 13:00:00 AEST

Treasury Wine Estates Limited (ASX:TWE) extended its gains on Wednesday, rising an additional 5.50c (or 0.4%) to trade at $A15.01. The shares have risen 39.50c (or 2.7%) over the past two trading days vs. the All Ordinaries Index which has fallen 0.9% in the same period.

Treasury Wine Estates Limited (AU:TWE; ASX:TWE; AX:TWE)

ISIN: AU000000TWE9

PermID: 5035081624

Source: www.BuySellSignals.com