Japanese stock alert

JAP

CLOSING UPDATE: SoftBank Group up 5.2% in 2 days 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).

SoftBank Group, the 3rd largest information & communication company by market capitalisation in the Japan's, extended its gains on Tuesday, rising an additional JPY181.0 (or 2.0%) to trade at JPY9,404.0. Trading volume was 86% of average at the end of the day. The shares have risen JPY469.0 (or 5.2%) over the past two trading days vs. the Nikkei 225 Index which has risen 1.3% in the same period.

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 increased 1.7% in the last week and lifted 3.6% in the last month.

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

Undervaluation:

+ Price/Earnings of 13.8 [17.9]

+ Price/Earnings/Growth of 0.31 [1.1]

+ Price/Sales of 1.1 [1.5]

+ Return on Equity 21.7% [10.9%]

Other Bullish Signals include:

+ The company is cash rich with Cash to Market Capitalisation at 21.1%.

+ Tobin's Q Ratio is 0.4. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stock by value of Q Ratio.

+ Net profit margin has averaged 8.2% in the last 3 years. This is better than the sector average of 8.1% and suggests a high margin of safety.

+ The Brand Value represents an impressive 13.1% of the estimated Enterprise Value of JPY8,356.4 billion (US$75.3 billion).

+ As per the Du Pont analysis, Return on Equity is high at 21.7%. Also, this has improved from 16.6% last year.

Note

SoftBank Group today is at a discount of 10.9% to the 12-month high of JPY10,550.0 on 30 Oct, 2017. It is at a premium of 25.8% to the 12-month low of JPY7,475.75 on 17 Apr, 2017.

Bearish Signals:

The negative 41.56 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

The stock has underperformed 74% of the Japan market over the past 6 months.

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

Overvaluation:

Dividend yield of 0.5% [1.6%]

Return on Assets 3.7% [4.8%]

Return on Capital Employed 6.1% [9.9%]

TODAY'S ALERTS

Afternoon Alert: SoftBank Group increases 1.0%, leads Information & communication sector higher

16 January 2018 13:02 JST

SoftBank Group Corp. (TO:9984) has increased 1.0% to trade at JPY9,319.0 vs. the Information & communication sector which strengthened 133.8 points (or 0.7%) to 20,354.9. Representing a weighting of about 14.8% of the sector, the stock accounted for 23.4% of today's gain. Trading volume was 86% of average so far today.

Morning Alert: SoftBank Group up 4.0% in 2 days

16 January 2018 11:01 JST

SoftBank Group Corp. (TO:9984) extended its gains on Tuesday, rising an additional JPY72.0 (or 0.8%) to trade at JPY9,295.0. Trading volume was 77% of average so far today. The shares have risen JPY360.0 (or 4.0%) over the past two trading days vs. the Nikkei 225 Index which has risen 0.5% in the same period.

RECENT ALERTS

CLOSING UPDATE: SoftBank Group decreases gains by 0.6%, led market higher

15 January 2018 16:28 JST

SoftBank Group, the 3rd largest information & communication company by market capitalisation in the Japan's, has lifted 3.2% to trade at JPY9,223.0 vs. the Nikkei 225 Index which strengthened 61.1 points (or 0.3%) to 23,714.9. Representing a weighting of about 2.5% of the index, the stock accounted for 30.6% of today's gain. Trading volume was 1.4 times 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 3.0%.

Afternoon Alert: SoftBank Group lifts 3.9%, leads market higher

15 January 2018 13:02 JST

SoftBank Group Corp. (TO:9984) has lifted 3.9% to trade at JPY9,280.0 vs. the Nikkei 225 Index which strengthened 54.8 points (or 0.2%) to 23,708.6. Representing a weighting of about 2.5% of the index, the stock accounted for 41.6% of today's gain. Trading volume was 1.9 times average so far today.

SoftBank Group Corp. (TO:9984; TYO:9984; T:9984; JP:9984)

ISIN: JP3436100006

Source: www.BuySellSignals.com