Japanese stock alert

JAP

CLOSING UPDATE: KAO increased 0.5% - outperforming 93% of stocks 21 July 2017 16:45 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).

KAO, the 2nd largest chemicals company by market capitalisation in the Japan's, has increased JPY33.0 (or 0.5%) today to trade at JPY7,132.0 and has outperformed 93% of the market in the past week. A price rise combined with a high relative strength is a bullish signal. Compared with the Nikkei 225 Index which fell 44.8 points (or 0.2%) in the day, this represented a relative price increase of 0.7%.

Technical indicators complementing today's significant uptrend:

+ The positive 61.99 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

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

+ The price climbed 5.8% in the last week and 4.9% in the last month.

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

Undervaluation:

+ Return on Equity 18.6% [9.4%]

+ Return on Assets 9.6% [4.9%]

+ Return on Capital Employed 20.2% [9.8%]

+ Year-on-Year Earnings Growth of 28.4% [22.6%]

Other Bullish Signals include:

+ Total Liabilities/EBITDA of 3.2 is comfortably below the Joseph Piotroski benchmark of <5.

+ Net profit margin has averaged 7.1% 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 of 18.6% is better than sector average of 9.4%.

Note

Bearish Signals:

Tobin's Q Ratio is 2.7. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

Overbought/Bearish:

The 0.5% discount to 12-month high of JPY7,164.0 against the 48.3% premium to 12-month low of JPY4,808.31 suggests the climb might be peaking.

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

Overvaluation:

Price/Earnings of 28.2 [19.2]

Price/Earnings/Growth of 1.08 [0.8]

Price/Sales of 2.5 [1.2]

Price to Book of 6.8 [2.1]

Dividend yield of 1.4% [1.7%]

TODAY'S ALERTS

Afternoon Alert: KAO in 4th consecutive rise, nears two-month high

21 July 2017 13:11 JST

KAO Corporation (TO:4452) extended its gains Friday, rising an additional JPY14.0 (or 0.2%) to trade at JPY7,113.0. The stock lifted 3.24% on Wednesday and 1.15% on Thursday bringing its 4-day rise to 5.5%. It is now approaching its 43-day high of JPY7,164.0.

Morning Alert: KAO hits 52-week high seventh time in two months

21 July 2017 10:56 JST

KAO Corporation (TO:4452) hit a 52-week high of JPY7,164.0 today for the seventh time in the past two months and last traded at JPY7,098.0. Trading volume was 1.1 times average so far today.

RECENT ALERTS

CLOSING UPDATE: KAO keeps rising: up 5.3% in 3 days

20 July 2017 16:26 JST

KAO, the 2nd largest chemicals company by market capitalisation in the Japan's, extended its gains on Thursday, rising an additional JPY81.0 (or 1.2%) to trade at JPY7,099.0. Trading volume was 92% of average at the end of the day. The shares have risen JPY359.0 (or 5.3%) over the past three trading days vs. the Nikkei 225 Index which has risen 0.1% in the same period.

Afternoon Alert: KAO keeps rising: up 5.0% in 3 days

20 July 2017 13:11 JST

KAO Corporation (TO:4452) extended its gains on Thursday, rising an additional JPY57.0 (or 0.8%) to trade at JPY7,075.0. The shares have risen JPY335.0 (or 5.0%) over the past three trading days vs. the Nikkei 225 Index which has fallen 0.1% in the same period.

KAO Corporation (TO:4452; TYO:4452; T:4452; JP:4452)

ISIN: JP3205800000

Source: www.BuySellSignals.com