German stock alert


Afternoon Alert: BASF increases 0.6%, leads Chemicals sector higher 16 January 2018 12:18 CET


BASF (ETR:BAS) has increased 0.6% to trade at EUR94.71 vs. the Chemicals sector which strengthened 13.1 points (or 0.2%) to 7,826.4. Representing a weighting of about 15.7% of the sector, the stock accounted for 53.0% of today's gain.

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

+ The positive 0.25 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The 3.3% discount to 12-month high of EUR97.90 against the 19.9% premium to 12-month low of EUR78.97 suggests the stock continues to push for new highs.

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

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


+ Dividend yield of 1.6% [0.6%]

+ Price/Earnings of 16.8 [23.5]

+ Return on Capital Employed 9.9% [7.6%]

+ Price/Sales of 1.4 [1.7]

+ Return on Assets 5.6% [4.7%]

+ Return on Equity 13.7% [12.0%]


Bearish Signals:

The price decreased 0.2% in the last week and 0.6% in the last month.

Tobin's Q Ratio is 1.1. 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 7% in the last 3 years. This is lower than the sector average of 7.5% and suggests a low margin of safety.

Revenue growth has shown signs of deterioration in recent quarters.



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