Japanese stock alert

JAP

CLOSING UPDATE: Shin-Etsu Chemical increases 1.1%, led Chemicals sector higher 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).

Shin-Etsu Chemical, the largest chemicals company by market capitalisation in the Japan's, has increased 1.1% to trade at JPY10,570.0 vs. the Chemicals sector which strengthened 57.1 points (or 0.2%) to 27,558.8. Representing a weighting of about 10.2% of the sector, the stock accounted for 51.3% of today's gain. The shares have outperformed 92% of the market in the past week. Trading volume was 1.2 times average at the end of the day. Compared with the Nikkei 225 Index which rose 26.9 points (or 0.1%) in the day, this represented a relative price increase of 0.9%.

Technical indicators complementing today's significant uptrend:

+ The positive 131.38 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the last three months the stock has hit a new 52-week high thrice.

+ The present value of JPY1,000 invested one year ago is JPY1,491 [vs JPY1,259 for the Nikkei 225 Index].

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

Undervaluation:

+ Return on Assets 6.7% [5.4%]

Other Bullish Signals include:

+ The company is cash rich with Cash to Market Capitalisation at 20.6%.

+ 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

Bearish Signals:

As per the Du Pont analysis, Return on Equity of 8.5% is lower than sector average of 10.3%.

Overbought/Bearish:

The 2.0% discount to 12-month high of JPY10,784.65 against the 47.6% premium to 12-month low of JPY7,159.81 suggests the climb might be peaking.

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

Overvaluation:

Price/Earnings of 24.5 [17.9]

Price/Sales of 3.6 [1.2]

Dividend yield of 1.8% [2.5%]

Return on Equity 8.5% [10.3%]

TODAY'S ALERTS

Afternoon Alert: Shin-Etsu Chemical increases 0.7% - outperforming 90% of stocks

18 October 2017 13:09 JST

Shin-Etsu Chemical Co., Ltd. (TO:4063) has increased JPY75.0 (or 0.7%) today to trade at JPY10,535.0 and has outperformed 90% of the market in the past week. A price rise combined with a high relative strength is a bullish signal.

Morning Alert: Shin-Etsu Chemical increases 0.9% - outperforming 91% of stocks

18 October 2017 10:55 JST

Shin-Etsu Chemical Co., Ltd. (TO:4063) has increased JPY95.0 (or 0.9%) today to trade at JPY10,555.0 and has outperformed 91% of the market in the past week. A price rise combined with a high relative strength is a bullish signal.

RECENT ALERTS

CLOSING UPDATE: Shin-Etsu Chemical lifts 2.7% on firm volume

17 October 2017 16:28 JST

Shin-Etsu Chemical, the largest chemicals company by market capitalisation in the Japan's, traded on heavy volume of 1.3 times average today while the price lifted JPY275.0 (or 2.7%) to trade at JPY10,460.0. Compared with the Nikkei 225 Index which rose 80.6 points (or 0.4%) in the day, this represented a relative price increase of 2.3%.

Afternoon Alert: Shin-Etsu Chemical lifts 2.2%, leads Chemicals sector higher

17 October 2017 13:19 JST

Shin-Etsu Chemical Co., Ltd. (TO:4063) has lifted 2.2% to trade at JPY10,405.0 vs. the Chemicals sector which strengthened 93.1 points (or 0.3%) to 27,420.8. Representing a weighting of about 10.1% of the sector, the stock accounted for 64.3% of today's gain. The shares have outperformed 82% of the market in the past week. Trading volume was 1.3 times average so far today.

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

ISIN: JP3371200001

Source: www.BuySellSignals.com