Japanese stock alert

JAP

CLOSING UPDATE: Recruit Holdings down 3.3% in 2 days 18 October 2017 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).

Recruit Holdings, the largest total tokyo market ex nikkei 225 index company by market capitalisation in the Japan's, extended its slide on Wednesday, shedding an additional JPY33.0 (or 1.2%) to trade at JPY2,650.0. Trading volume was 1.3 times average at the end of the day. The shares have fallen JPY90.0 (or 3.3%) over the past two trading days vs. the Nikkei 225 Index which has risen 0.5% in the same period.

Technical indicators complementing today's significant downtrend:

+ The price dropped 2.3% in the last week.

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

Overvaluation:

+ Price/Earnings of 38.0 [21.9]

+ Price/Sales of 2.3 [0.9]

Other Bearish Signals include:

+ Tobin's Q Ratio is 3.1. Compared with the rest of the market the stock is overvalued and ranks in the bottom 9% of stocks by value of Q Ratio.

+ Net profit margin has averaged 4.7% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

Note

Bullish Signals:

The positive 119.12 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

The 4.4% discount to 12-month high of JPY2,773.0 against the 105.3% premium to 12-month low of JPY1,291.07 suggests the stock continues to push for new highs.

The stock has outperformed 83% of the Japan market over the past 6 months.

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

The present value of JPY1,000 invested one year ago is JPY2,029 [vs JPY1,259 for the Nikkei 225 Index].

Interest cover is less leveraged at 172 times.

Total Liabilities/EBITDA of 4.5 is less than the Joseph Piotroski benchmark of <5.

As per the Du Pont analysis, Return on Equity of 11.2% is better than sector average of 6.7%.

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

Undervaluation:

Dividend yield of 4.1% [2.5%]

Return on Equity 11.2% [6.7%]

Return on Assets 5.9% [1.0%]

Return on Capital Employed 13.8% [7.5%]

TODAY'S ALERTS

Afternoon Alert: Recruit Holdings down 3.1% in 2 days

18 October 2017 13:09 JST

Recruit Holdings Co., Ltd. (TO:6098) extended its slide on Wednesday, shedding an additional JPY27.0 (or 1.0%) to trade at JPY2,656.0. Trading volume was 65% of average so far today. The shares have fallen JPY84.0 (or 3.1%) over the past two trading days vs. the Nikkei 225 Index which has risen 0.5% in the same period.

Morning Alert: Recruit Holdings down 2.9% in 2 days

18 October 2017 10:55 JST

Recruit Holdings Co., Ltd. (TO:6098) extended its slide on Wednesday, shedding an additional JPY23.0 (or 0.9%) to trade at JPY2,660.0. Trading volume was 60% of average so far today. The shares have fallen JPY80.0 (or 2.9%) over the past two trading days vs. the Nikkei 225 Index which has risen 0.4% in the same period.

RECENT ALERTS

CLOSING UPDATE: Recruit Holdings recovers 0.6% on high volume

13 October 2017 16:31 JST

Recruit Holdings, the largest total tokyo market ex nikkei 225 index company by market capitalisation in the Japan's, traded on heavy volume of 1.9 times average today while the price decreased JPY54.0 (or 2.0%) to trade at JPY2,715.0. Compared with the Nikkei 225 Index which rose 48.8 points (or 0.2%) in the day, this represented a relative price change of -2.2%.

Morning Alert: Recruit Holdings drops 2.5% on firm volume

13 October 2017 11:10 JST

Recruit Holdings Co., Ltd. (TO:6098) traded on heavy volume of 1.2 times average so far today while the price dropped JPY70.0 (or 2.5%) to trade at JPY2,699.0.

Recruit Holdings Co., Ltd. (TO:6098; TYO:6098; T:6098; JP:6098)

ISIN: JP3970300004

Source: www.BuySellSignals.com