Japanese stock alert

JAP

CLOSING UPDATE: Shin-Etsu Chemical hits 52-week high second time in one month 21 July 2017 16:45 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).

Shin-Etsu Chemical, the largest chemicals company by market capitalisation in the Japan's, hit a 52-week high of JPY10,400.0 today for the second time in the past one month and last traded at JPY10,335.0. This brought its two-day rise to JPY210.0 or 2.1%. Trading volume was 73% of average at the end of the day. Compared with the Nikkei 225 Index which fell 44.8 points (or 0.2%) in the day, this represented a relative price increase of 0.6%.

Technical indicators complementing today's significant uptrend:

+ The positive 56.57 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the last one month the stock has hit a new 52-week high twice and in the last three months six times, pointing to an uptrend.

+ The price increased 1.6% in the last week and lifted 2.6% in the last month.

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

Undervaluation:

+ Return on Assets 6.7% [4.9%]

Other Bullish Signals include:

+ The company is cash rich with Cash to Market Capitalisation at 21.0%.

+ Interest cover is less leveraged at 458.7 times.

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

+ Tobin's Q Ratio is 1.7. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 12.2% in the last 3 years. This is better than the sector average of 5.3% and suggests a high margin of safety.

Note

The stock has underperformed 58% of the Japan market over the past 6 months.

Bearish Signals:

As per the Du Pont analysis, Return on Equity of 8.5% is lower than sector average of 9.4%.

Overbought/Bearish:

The 0.6% discount to 12-month high of JPY10,400.0 against the 69.6% premium to 12-month low of JPY6,093.38 suggests the climb might be peaking.

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

Overvaluation:

Price/Sales of 3.6 [1.2]

Dividend yield of 1.2% [1.7%]

TODAY'S ALERTS

Afternoon Alert: Shin-Etsu Chemical increases 0.4% - outperforming 81% of stocks

21 July 2017 13:11 JST

Shin-Etsu Chemical Co., Ltd. (TO:4063) has increased JPY45.0 (or 0.4%) today to trade at JPY10,345.0 and has outperformed 81% of the market in the past one year. The present value of JPY1,000 invested one year ago is JPY1,657 [vs JPY1,195 for the Nikkei 225 Index], including a capital gain of JPY635 and dividend reinvested of JPY22.

Morning Alert: Shin-Etsu Chemical increases 0.5% - outperforming 81% of stocks

21 July 2017 10:56 JST

Shin-Etsu Chemical Co., Ltd. (TO:4063) has increased JPY50.0 (or 0.5%) today to trade at JPY10,350.0 and has outperformed 81% of the market in the past one year. The present value of JPY1,000 invested one year ago is JPY1,658 [vs JPY1,196 for the Nikkei 225 Index], including a capital gain of JPY636 and dividend reinvested of JPY22.

RECENT ALERTS

CLOSING UPDATE: Shin-Etsu Chemical decreased 0.5%

18 July 2017 16:35 JST

Shin-Etsu Chemical, the largest chemicals company by market capitalisation in the Japan's, traded on volume of 0.4 times average today while the price decreased JPY50.0 (or 0.5%) to trade at JPY10,125.0. Compared with the Nikkei 225 Index which fell 127.0 points (or 0.6%) in the day, this represented a relative price increase of 0.1%.

Morning Alert: Shin-Etsu Chemical decreases 0.2%, leads Chemicals sector lower

18 July 2017 10:55 JST

Shin-Etsu Chemical Co., Ltd. (TO:4063) has decreased 0.2% to trade at JPY10,150.0 vs. the Chemicals sector which weakened 30.0 points (or 0.1%) to 26,044.3. Representing a weighting of about 10.4% of the sector, the stock accounted for 21.3% of today's loss. Trading volume was 50% of average so far today.

Shin-Etsu Chemical Co., Ltd. (TO:4063; TYO:4063; T:4063; JP:4063)

ISIN: JP3371200001

Source: www.BuySellSignals.com