Japanese stock alert

JAP

CLOSING UPDATE: Sony down 3.6% in 2 days 21 September 2018 16:53 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).

Sony, the largest electric appliances company by market capitalisation in Japan's, extended its slide on Friday, shedding an additional JPY130.0 (or 2.0%) to trade at JPY6,444.0. Trading volume was 1.5 times average at the end of the day. The shares have fallen JPY238.0 (or 3.6%) over the past two trading days vs. the Nikkei 225 Index which has risen 0.8% in the same period.

Technical indicators complementing today's significant downtrend:

+ The price dropped 2.8% in the last week.

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

Overvaluation:

+ Price to Book of 3.2 [2.4]

+ Dividend yield of 0.4% [1.4%]

+ Return on Assets 2.9% [5.9%]

+ Return on Capital Employed 5.3% [8.6%]

Other Bearish Signals include:

+ Net profit margin has averaged 3.6% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

Note

Bullish Signals:

The positive 137.81 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

The 4.9% discount to 12-month high of JPY6,773.0 against the 59.9% premium to 12-month low of JPY4,029.35 suggests the stock continues to push for new highs.

The stock has outperformed 89% of the Japan market over the past 6 months.

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

The present value of JPY1,000 invested one year ago is JPY1,554 [vs JPY1,173 for the Nikkei 225 Index].

The company is cash rich with Cash to Market Capitalisation at 14.4%.

Interest cover is less leveraged at 52.5 times.

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

The Brand Value represents an impressive 10.6% of the estimated Enterprise Value of JPY10,208.7 billion (US$90.5 billion).

As per the Du Pont analysis, Return on Equity of 15.0% is better than sector average of 12.6%.

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

Undervaluation:

Price/Earnings of 13.0 [14.3]

Return on Equity 15.0% [12.6%]

TODAY'S ALERTS

Afternoon Alert: Sony down 3.6% in 2 days

21 September 2018 13:03 JST

Sony Corporation (TO:6758) extended its slide on Friday, shedding an additional JPY134.0 (or 2.0%) to trade at JPY6,440.0. Trading volume was 1.2 times average so far today. The shares have fallen JPY242.0 (or 3.6%) over the past two trading days vs. the Nikkei 225 Index which has risen 0.5% in the same period.

Morning Alert: Sony down 3.4% in 2 days

21 September 2018 11:11 JST

Sony Corporation (TO:6758) extended its slide on Friday, shedding an additional JPY119.0 (or 1.8%) to trade at JPY6,455.0. Trading volume was 1.1 times average so far today. The shares have fallen JPY227.0 (or 3.4%) over the past two trading days vs. the Nikkei 225 Index which has risen 0.5% in the same period.

RECENT ALERTS

CLOSING UPDATE: Sony decreases further 0.3%, led Electric appliances sector lower

20 September 2018 16:35 JST

Sony, the largest electric appliances company by market capitalisation in Japan's, has decreased 1.6% to trade at JPY6,574.0 vs. the Electric appliances sector which weakened 141.0 points (or 0.5%) to 28,252.8. Representing a weighting of about 10.0% of the sector, the stock accounted for 32.3% of today's loss. Trading volume was 87% of average at the end of the day. Compared with the Nikkei 225 Index which rose 2.4 points (or 0.01%) in the day, this represented a relative price change of -1.6%.

Afternoon Alert: Sony decreases 1.3%, leads Electric appliances sector lower

20 September 2018 12:59 JST

Sony Corporation (TO:6758) has decreased 1.3% to trade at JPY6,595.0 vs. the Electric appliances sector which weakened 152.2 points (or 0.5%) to 28,241.7. Representing a weighting of about 10.0% of the sector, the stock accounted for 24.2% of today's loss. Trading volume was 69% of average so far today.

Sony Corporation (TO:6758; TYO:6758; T:6758; JP:6758)

ISIN: JP3435000009

Source: www.BuySellSignals.com