Japanese stock alert

JAP

CLOSING UPDATE: Nintendo increases further 0.3%, led Other products sector higher 16 January 2018 16:26 JST

NEWS BITES - JAPAN

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

Nintendo, the largest other products company by market capitalisation in the Japan's, has increased 0.6% to trade at JPY45,110.0 vs. the Other products sector which strengthened 19.8 points (or 0.3%) to 6,723.4. Representing a weighting of about 42.8% of the sector, the stock accounted for 79.5% of today's gain. The shares have outperformed 84% of the market in the past week. Trading volume was 74% of average at the end of the day. Compared with the Nikkei 225 Index which rose 236.9 points (or 1%) in the day, this represented a relative price change of -0.4%.

Technical indicators complementing today's significant uptrend:

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

+ The price climbed 4.6% in the last week and 4.8% in the last month.

+ The present value of JPY1,000 invested one year ago is JPY2,019 [vs JPY1,254 for the Nikkei 225 Index].

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

Undervaluation:

+ Return on Equity 8.2% [6.3%]

+ Return on Assets 7% [3.9%]

+ Return on Capital Employed 8.9% [6.7%]

Other Bullish Signals include:

+ The company is cash rich with Cash to Market Capitalisation at 10.4%.

+ Total Liabilities/EBITDA of 1.9 is comfortably below the Joseph Piotroski benchmark of <5.

+ Net profit margin has averaged 10.6% in the last 3 years. This is better than the sector average of 4.2% and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity of 8.2% is better than sector average of 6.3%.

Note

Nintendo today is at a discount of 6.4% to the 12-month high of JPY48,190.0 on 27 Nov, 2017. It is at a premium of 108.9% to the 12-month low of JPY21,590.83 on 01 Feb, 2017.

Bearish Signals:

The negative 15.38 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

Tobin's Q Ratio is 4.4. Compared with the rest of the market the stock is overvalued and ranks in the bottom 6% of stocks by value of Q Ratio.

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

Overvaluation:

Price/Earnings of 47.0 [32.0]

Price/Sales of 8.8 [1.6]

Price to Book of 5.2 [2.1]

Dividend yield of 1.2% [1.8%]

TODAY'S ALERTS

Afternoon Alert: Nintendo increases 0.3%, leads Other products sector higher

16 January 2018 13:02 JST

Nintendo Co., Ltd. (TO:7974) has increased 0.3% to trade at JPY44,980.0 vs. the Other products sector which strengthened 11.1 points (or 0.2%) to 6,714.6. Representing a weighting of about 42.8% of the sector, the stock accounted for 71.5% of today's gain. The shares have outperformed 84% of the market in the past week. Trading volume was 88% of average so far today.

Morning Alert: Nintendo decreases 0.7%, leads Other products sector lower

16 January 2018 11:01 JST

Nintendo Co., Ltd. (TO:7974) has decreased 0.7% to trade at JPY44,550.0 vs. the Other products sector which weakened 25.5 points (or 0.4%) to 6,678.0. Representing a weighting of about 42.6% of the sector, the stock accounted for 77.4% of today's loss. Trading volume was 76% of average so far today.

RECENT ALERTS

CLOSING UPDATE: Nintendo increases 0.5%, led Other products sector higher

15 January 2018 16:28 JST

Nintendo, the largest other products company by market capitalisation in the Japan's, has increased 0.5% to trade at JPY44,860.0 vs. the Other products sector which strengthened 24.8 points (or 0.4%) to 6,703.6. Representing a weighting of about 42.7% of the sector, the stock accounted for 62.1% of today's gain. The shares have outperformed 87% of the market in the past one year. Trading volume was 76% of average at the end of the day. Compared with the Nikkei 225 Index which rose 61.1 points (or 0.3%) in the day, this represented a relative price increase of 0.3%.

Afternoon Alert: Nintendo in 2nd consecutive rise, nears two-month high

15 January 2018 13:02 JST

Nintendo Co., Ltd. (TO:7974) extended its gains Monday, rising an additional JPY580.0 (or 1.3%) to trade at JPY45,200.0. The stock increased 1.13% on Friday bringing its 2-day rise to 2.4%. It is now approaching its 39-day high of JPY45,330.0.

Nintendo Co., Ltd. (TO:7974; TYO:7974; T:7974; JP:7974)

ISIN: JP3756600007

Source: www.BuySellSignals.com