German stock alert


Afternoon Alert: Infineon Technologies climbs 4.1%, leads market higher 18 January 2018 12:17 CET


Infineon Technologies AG (ETR:IFX) has climbed 4.1% to trade at EUR24.75 vs. the DAX Index which strengthened 55.0 points (or 0.4%) to 13,239.0. Representing a weighting of about 2.3% of the index, the stock accounted for 22.1% of today's gain. The shares have outperformed 84% of the market in the past week. Trading volume was 1.1 times average so far today.

Current indications of bullish signals that support the trend in the unusual trading:

+ The positive 0.27 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The 2.7% discount to 12-month high of EUR25.45 against the 52.3% premium to 12-month low of EUR16.25 suggests the stock continues to push for new highs.

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

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


+ Dividend yield of 0.9% [0.2%]

+ Price to Book of 6.9 [9.9]

Other Bullish Signals include:

+ Interest cover is less leveraged at 15.8 times.

+ Total Liabilities/EBITDA of 4.3 is less than the Joseph Piotroski benchmark of <5.

+ As per the Du Pont analysis, Return on Equity of 14.0% is better than sector average of 12.9%.


Bearish Signals:

Tobin's Q Ratio is 2.8. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

Net profit margin has averaged 11.1% in the last 3 years. This is lower than the sector average of 13.1% and suggests a low margin of safety.

Infineon Technologies AG (DE:IFX; ETR:IFX; GR:IFX)

ISIN: DE0006231004

PermID: 4295870063