Japanese stock alert

JAP

CLOSING UPDATE: Bridgestone increases further 0.1%, led Rubber products sector higher 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).

Bridgestone, the largest rubber products company by market capitalisation in the Japan's, has increased 1.2% to trade at JPY5,416.0 vs. the Rubber products sector which strengthened 167.4 points (or 0.5%) to 33,504.9. Representing a weighting of about 68.9% of the sector, the stock accounted for the gain. The shares have outperformed 86% of the market in the past week. Trading volume was 1.1 times average at the end of the day. Compared with the Nikkei 225 Index which rose 26.9 points (or 0.1%) in the day, this represented a relative price increase of 1.0%.

Technical indicators complementing today's significant uptrend:

+ The positive 122.43 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the Japan market, the stock's relative price strength percentile is improving at 64 for 6 months, 68 for 3 months and 81 for 1 month.

+ In the last one month the stock has hit a new 52-week high sixteen times and in the last three months seventeen times, pointing to a significant uptrend.

+ The price lifted 3.2% in the last week and jumped 7.8% in the last month.

+ The present value of JPY1,000 invested one year ago is JPY1,499 [vs JPY1,259 for the Nikkei 225 Index].

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

Undervaluation:

+ Price/Earnings of 14.4 [16.0]

+ Return on Equity 12.5% [10.5%]

+ Return on Assets 7.4% [5.8%]

+ Return on Capital Employed 15% [11.4%]

Other Bullish Signals include:

+ The company is cash rich with Cash to Market Capitalisation at 14.8%.

+ Interest cover is less leveraged at 42.5 times.

+ Total Liabilities/EBITDA of 3 is comfortably below the Joseph Piotroski benchmark of <5.

+ Tobin's Q Ratio is 1.2. 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 6.7% and suggests a high margin of safety.

+ The Brand Value represents an impressive 11.6% of the estimated Enterprise Value of JPY4,322.6 billion (US$38.5 billion).

+ As per the Du Pont analysis, Return on Equity of 12.5% is better than sector average of 10.5%.

Note

Overbought/Bearish:

The 0.6% discount to 12-month high of JPY5,450.0 against the 51.7% premium to 12-month low of JPY3,569.76 suggests the climb might be peaking.

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

Overvaluation:

Price/Sales of 1.3 [0.9]

TODAY'S ALERTS

Afternoon Alert: Bridgestone increases 1.1%, leads Rubber products sector higher

18 October 2017 13:09 JST

Bridgestone Corporation (TO:5108) has increased 1.1% to trade at JPY5,412.0 vs. the Rubber products sector which strengthened 175.1 points (or 0.5%) to 33,512.6. Representing a weighting of about 68.9% of the sector, the stock accounted for the gain. The shares have outperformed 85% of the market in the past week. Trading volume was 1.4 times average so far today.

Morning Alert: Bridgestone increases 1.3%, leads Rubber products sector higher

18 October 2017 10:55 JST

Bridgestone Corporation (TO:5108) has increased 1.3% to trade at JPY5,422.0 vs. the Rubber products sector which strengthened 253.5 points (or 0.8%) to 33,591.1. Representing a weighting of about 68.8% of the sector, the stock accounted for the gain. The shares have outperformed 86% of the market in the past week. Trading volume was 1.4 times average so far today.

RECENT ALERTS

CLOSING UPDATE: Bridgestone hits 52-week high fifteenth time in one month

17 October 2017 16:28 JST

Bridgestone, the largest rubber products company by market capitalisation in the Japan's, hit a 52-week high of JPY5,363.0 today for the 15th time in the past one month and last traded at JPY5,353.0. Trading volume was 69% of average at the end of the day. Compared with the Nikkei 225 Index which rose 80.6 points (or 0.4%) in the day, this represented a relative price increase of 0.5%.

Afternoon Alert: Bridgestone hits 52-week high fifteenth time in one month

17 October 2017 13:19 JST

Bridgestone Corporation (TO:5108) hit a 52-week high of JPY5,363.0 today for the 15th time in the past one month and last traded at JPY5,339.0. Trading volume was 81% of average so far today.

Bridgestone Corporation (TO:5108; TYO:5108; T:5108; JP:5108)

ISIN: JP3830800003

Source: www.BuySellSignals.com