Japanese stock alert

JAP

CLOSING UPDATE: Keyence climbs 4.1% on robust volume 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).

Keyence, the largest electric appliances company by market capitalisation in the Japan's, traded on heavy volume of 1.5 times average today while the price climbed JPY2,720.0 (or 4.1%) to trade at JPY69,740.0. Compared with the Nikkei 225 Index which rose 236.9 points (or 1%) in the day, this represented a relative price increase of 3.1%.

Technical indicators complementing today's significant uptrend:

+ The positive 830.1 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The stock has outperformed 81% of the Japan market over the past 6 months.

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

+ The price climbed 5.9% in the last week and jumped 7.9% in the last month.

+ The present value of JPY1,000 invested one year ago is JPY1,677 [vs JPY1,254 for the Nikkei 225 Index].

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

Undervaluation:

+ Return on Equity 10.2% [9.1%]

+ Return on Assets 9.6% [3.4%]

+ Return on Capital Employed 14.6% [7.1%]

Other Bullish Signals include:

+ Total Liabilities/EBITDA of 0.4 is comfortably below the Joseph Piotroski benchmark of <5.

+ Net profit margin has averaged 36% in the last 3 years. This is considered superior and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity of 10.2% is better than sector average of 9.1%.

Note

Bearish Signals:

Tobin's Q Ratio is 6.8. Compared with the rest of the market the stock is overvalued and ranks in the bottom 3% of stocks by value of Q Ratio.

Overbought/Bearish:

The 0.2% discount to 12-month high of JPY69,910.0 against the 72.6% premium to 12-month low of JPY40,398.93 suggests the climb might be peaking.

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

Overvaluation:

Price/Earnings of 51.4 [27.9]

Price to Book of 7.2 [2.8]

Dividend yield of 0.2% [1.4%]

TODAY'S ALERTS

Afternoon Alert: Keyence keeps rising: up 3.7% in 3 days

16 January 2018 13:02 JST

Keyence Corporation (TO:6861) extended its gains on Tuesday, rising an additional JPY1,380.0 (or 2.1%) to trade at JPY68,400.0. Trading volume was 1.2 times average so far today. The shares have risen JPY2,440.0 (or 3.7%) over the past three trading days vs. the Nikkei 225 Index which has risen 0.6% in the same period.

Morning Alert: Keyence in 3rd consecutive rise, nears two-month high

16 January 2018 11:01 JST

Keyence Corporation (TO:6861) extended its gains Tuesday, rising an additional JPY440.0 (or 0.7%) to trade at JPY67,460.0. The stock increased 0.14% on Friday and 1.47% on Monday bringing its 3-day rise to 2.3%. It is now testing its 47-day high of JPY67,460.0.

RECENT ALERTS

CLOSING UPDATE: Keyence increases further 0.04%, led Electric appliances sector higher

15 January 2018 16:28 JST

Keyence, the largest electric appliances company by market capitalisation in the Japan's, has increased 1.5% to trade at JPY67,020.0 vs. the Electric appliances sector which strengthened 95.5 points (or 0.3%) to 32,130.2. Representing a weighting of about 8.6% of the sector, the stock accounted for 42.0% of today's gain. Trading volume was 72% of 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 1.2%.

Afternoon Alert: Keyence increases 1.4%, leads Electric appliances sector higher

15 January 2018 13:02 JST

Keyence Corporation (TO:6861) has increased 1.4% to trade at JPY66,990.0 vs. the Electric appliances sector which strengthened 69.5 points (or 0.2%) to 32,104.2. Representing a weighting of about 8.6% of the sector, the stock accounted for 55.5% of today's gain.

Keyence Corporation (TO:6861; TYO:6861; T:6861; JP:6861)

ISIN: JP3236200006

Source: www.BuySellSignals.com