Japanese stock alert

JAP

Afternoon Alert: Nippon Telegraph and Telephone decreases 0.9%, leads Information & communication sector lower 19 June 2018 13:00 JST

NEWS BITES - JAPAN

Nippon Telegraph and Telephone Corp. (TO:9432) has decreased 0.9% to trade at JPY5,196.0 vs. the Information & communication sector which weakened 167.3 points (or 0.8%) to 20,286.6. Representing a weighting of about 15.9% of the sector, the stock accounted for 17.7% of today's loss. Trading volume was 1.3 times average so far today.

Current indications of bearish signals that support the trend in the unusual trading:

+ The negative 2.27 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The price decreased 1.8% in the last month.

Other Bearish Signals include:

+ Tobin's Q Ratio is 0.5. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

+ Net profit margin has averaged 7.5% in the last 3 years. This is lower than the sector average of 8.3% and suggests a low margin of safety.

Note

Nippon Telegraph and Telephone today is at a discount of 10.6% to the 12-month high of JPY5,814.98 on 30 Nov, 2017. It is at a premium of 16.1% to the 12-month low of JPY4,475.72 on 14 Feb, 2018.

Bullish Signals:

Interest cover is less leveraged at 41.5 times.

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

Undervaluation:

Price to Book of 1.8 [3.8]

Price/Sales of 1 [1.4]

Return on Equity 14.6% [11.2%]

Dividend yield of 2.9% [2.5%]

Nippon Telegraph and Telephone Corp. (TO:9432; TYO:9432; T:9432; JP:9432)

ISIN: JP3735400008

Source: www.BuySellSignals.com