Japanese stock alert

JAP

End of Day Alert: SoftBank Group increases 0.7%, led market higher 20 October 2017 16:23 JST

NEWS BITES - JAPAN

SoftBank Group, the 2nd largest information & communication company by market capitalisation in the Japan's, has increased 0.7% to trade at JPY9,972.0 vs. the Nikkei 225 Index which strengthened 9.1 points (or 0.04%) to 21,457.6. Representing a weighting of about 2.9% of the index, the stock accounted for 53.5% of today's gain. The shares have outperformed 83% of the market in the past month. Trading volume was 64% of average at the end of the day. Compared with the Nikkei 225 Index which rose 9.1 points (or 0.04%) in the day, this represented a relative price increase of 0.7%.

Technical indicators complementing today's significant uptrend:

+ The positive 281.9 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

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

+ The price increased 1.2% in the last week and jumped 8.3% in the last month.

+ The present value of JPY1,000 invested one year ago is JPY1,507 [vs JPY1,245 for the Nikkei 225 Index].

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

Undervaluation:

+ Price/Earnings/Growth of 0.21 [0.4]

+ Price/Sales of 1.2 [1.4]

+ Return on Equity 21.7% [13.0%]

Other Bullish Signals include:

+ The company is cash rich with Cash to Market Capitalisation at 19.9%.

+ Tobin's Q Ratio is 0.4. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 8.2% in the last 3 years. This is better than the sector average of 7.8% and suggests a high margin of safety.

+ The Brand Value represents an impressive 12.4% of the estimated Enterprise Value of JPY8,981.2 billion (US$79.8 billion).

+ As per the Du Pont analysis, Return on Equity is high at 21.7%. Also, this has improved from 16.6% last year.

Note

Overbought/Bearish:

The 1.4% discount to 12-month high of JPY10,110.0 against the 67.9% premium to 12-month low of JPY5,938.51 suggests the climb might be peaking.

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

Overvaluation:

Dividend yield of 0.4% [2.4%]

Return on Assets 3.7% [5.2%]

Return on Capital Employed 6.1% [9.5%]

RECENT ALERTS

Afternoon Alert: SoftBank Group decreases 1.1%, leads Information & communication sector lower

17 October 2017 13:19 JST

SoftBank Group Corp. (TO:9984) has decreased 1.1% to trade at JPY9,873.0 vs. the Information & communication sector which weakened 39.5 points (or 0.2%) to 19,719.2. Representing a weighting of about 16.2% of the sector, the stock accounted for 89.4% of today's loss. Trading volume was 74% of average so far today.

CLOSING UPDATE: SoftBank Group increases 1.3%, led Information & communication sector higher

16 October 2017 16:33 JST

SoftBank Group, the 2nd largest information & communication company by market capitalisation in the Japan's, has increased 1.3% to trade at JPY9,983.0 vs. the Information & communication sector which strengthened 104.2 points (or 0.5%) to 19,758.7. Representing a weighting of about 16.4% of the sector, the stock accounted for 39.5% of today's gain. The shares have outperformed 93% of the market in the past month. Compared with the Nikkei 225 Index which rose 132.9 points (or 0.6%) in the day, this represented a relative price increase of 0.6%.

SoftBank Group Corp. (TO:9984; TYO:9984; T:9984; JP:9984)

ISIN: JP3436100006

Source: www.BuySellSignals.com