Japanese stock alert

JAP

CLOSING UPDATE: Denso increases further 0.2% - outperforming 81% of stocks 19 January 2018 16:29 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).

Denso, the 3rd largest transportation equipment company by market capitalisation in the Japan's, has increased JPY78.0 (or 1.1%) today to trade at JPY7,094.0 and has outperformed 81% of the market in the past three months. A price rise combined with a high relative strength is a bullish signal. Compared with the Nikkei 225 Index which rose 73.5 points (or 0.3%) in the day, this represented a relative price increase of 0.8%.

Technical indicators complementing today's significant uptrend:

+ The positive 178.91 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

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

+ The price increased 0.8% in the last week and jumped 8.3% in the last month.

+ The present value of JPY1,000 invested one year ago is JPY1,478 [vs JPY1,248 for the Nikkei 225 Index].

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

Undervaluation:

+ Return on Assets 5.3% [3.9%]

+ Return on Capital Employed 9.2% [7.9%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 37.5 times.

+ Total Liabilities/EBITDA of 4.6 is less than the Joseph Piotroski benchmark of <5.

+ Tobin's Q Ratio is 1.1. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 6.1% in the last 3 years. This is better than the sector average of 5.5% and suggests a high margin of safety.

Note

Bearish Signals:

As per the Du Pont analysis, Return on Equity of 8.8% is lower than sector average of 9.8%.

Overbought/Bearish:

The 1.2% discount to 12-month high of JPY7,182.0 against the 57.5% premium to 12-month low of JPY4,502.76 suggests the climb might be peaking.

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

Overvaluation:

Price/Earnings of 17.5 [13.4]

Price/Sales of 1.2 [0.7]

Price to Book of 1.7 [1.4]

Dividend yield of 1.7% [2.4%]

Return on Equity 8.8% [9.8%]

TODAY'S ALERTS

Afternoon Alert: Denso increases 0.9% - outperforming 80% of stocks

19 January 2018 13:03 JST

Denso Corporation (TO:6902) has increased JPY63.0 (or 0.9%) today to trade at JPY7,079.0 and has outperformed 80% of the market in the past three months. A price rise combined with a high relative strength is a bullish signal.

Morning Alert: Denso increases 0.8%, leads Transportation equipment sector higher

19 January 2018 11:03 JST

Denso Corporation (TO:6902) has increased 0.8% to trade at JPY7,073.0 vs. the Transportation equipment sector which strengthened 81.7 points (or 0.3%) to 26,519.2. Representing a weighting of about 8.3% of the sector, the stock accounted for 21.9% of today's gain. The shares have outperformed 80% of the market in the past three months.

RECENT ALERTS

CLOSING UPDATE: Denso hits 52-week high eighth time in one month

18 January 2018 16:29 JST

Denso, the 3rd largest transportation equipment company by market capitalisation in the Japan's, hit a 52-week high of JPY7,182.0 today for the eighth time in the past one month and last traded at JPY7,016.0. Trading volume was 1.2 times average at the end of the day. Compared with the Nikkei 225 Index which fell 105.0 points (or 0.4%) in the day, this represented a relative price change of -0.7%.

Afternoon Alert: Denso hits 52-week high eighth time in one month

18 January 2018 13:03 JST

Denso Corporation (TO:6902) hit a 52-week high of JPY7,182.0 today for the eighth time in the past one month and last traded at JPY7,094.0. Trading volume was 94% of average so far today.

Denso Corporation (TO:6902; TYO:6902; T:6902; JP:6902)

ISIN: JP3551500006

Source: www.BuySellSignals.com