Japanese stock alert

JAP

CLOSING UPDATE: Nintendo down 3.1% in 2 days 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).

Nintendo, the largest other products company by market capitalisation in the Japan's, extended its slide on Wednesday, shedding an additional JPY780.0 (or 1.8%) to trade at JPY42,920.0. Trading volume was 85% of average at the end of the day. The shares have fallen JPY1,390.0 (or 3.1%) over the past two trading days vs. the Nikkei 225 Index which has risen 0.5% in the same period.

Technical indicators complementing today's significant downtrend:

+ The price dropped 2.5% in the last week.

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

Overvaluation:

+ Price/Earnings of 34.8 [28.3]

+ Price/Sales of 10.5 [1.5]

+ Price to Book of 4.9 [2.0]

Other Bearish Signals include:

+ Tobin's Q Ratio is 4.1. Compared with the rest of the market the stock is overvalued and ranks in the bottom 6% of stocks by value of Q Ratio.

Note

Bullish Signals:

The positive 1,406.44 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

The 3.8% discount to 12-month high of JPY44,600.0 against the 95.0% premium to 12-month low of JPY22,005.0 suggests the stock continues to push for new highs.

The stock has outperformed 90% of the Japan market over the past 6 months.

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

The present value of JPY1,000 invested one year ago is JPY1,637 [vs JPY1,259 for the Nikkei 225 Index].

The company is cash rich with Cash to Market Capitalisation at 10.9%.

Total Liabilities/EBITDA of 1.9 is comfortably below the Joseph Piotroski benchmark of <5.

Net profit margin has averaged 10.6% in the last 3 years. This is better than the sector average of 4.1% and suggests a high margin of safety.

As per the Du Pont analysis, Return on Equity of 8.2% is better than sector average of 6.9%.

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

Undervaluation:

Return on Equity 8.2% [6.9%]

Return on Assets 7% [4.0%]

Return on Capital Employed 8.9% [6.2%]

TODAY'S ALERTS

Afternoon Alert: Nintendo down 2.9% in 2 days

18 October 2017 13:09 JST

Nintendo Co., Ltd. (TO:7974) extended its slide on Wednesday, shedding an additional JPY680.0 (or 1.6%) to trade at JPY43,020.0. The shares have fallen JPY1,290.0 (or 2.9%) over the past two trading days vs. the Nikkei 225 Index which has risen 0.5% in the same period.

Morning Alert: Nintendo down 2.3% in 2 days

18 October 2017 10:55 JST

Nintendo Co., Ltd. (TO:7974) extended its slide on Wednesday, shedding an additional JPY430.0 (or 1.0%) to trade at JPY43,270.0. The shares have fallen JPY1,040.0 (or 2.3%) over the past two trading days vs. the Nikkei 225 Index which has risen 0.4% in the same period.

RECENT ALERTS

CLOSING UPDATE: Nintendo decreases further 0.4%, led Other products sector lower

17 October 2017 16:28 JST

Nintendo, the largest other products company by market capitalisation in the Japan's, has decreased 1.4% to trade at JPY43,700.0 vs. the Other products sector which weakened 42.9 points (or 0.7%) to 6,510.7. Representing a weighting of about 42.7% of the sector, the stock accounted for 90.5% of today's loss. Trading volume was 89% 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 change of -1.8%.

Afternoon Alert: Nintendo decreases 1.0%, leads Other products sector lower

17 October 2017 13:19 JST

Nintendo Co., Ltd. (TO:7974) has decreased 1.0% to trade at JPY43,870.0 vs. the Other products sector which weakened 37.9 points (or 0.6%) to 6,515.7. Representing a weighting of about 42.9% of the sector, the stock accounted for 73.4% of today's loss.

Nintendo Co., Ltd. (TO:7974; TYO:7974; T:7974; JP:7974)

ISIN: JP3756600007

Source: www.BuySellSignals.com