Italian stock alert


CLOSING UPDATE: Recordati increases 0.5%, led Health care sector higher 20 October 2017 19:18 CEST


This is an end of day Alert, produced after today's Italian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Recordati, Italy's largest health care company by market capitalisation, has increased 0.5% to trade at EUR39.71 vs. the Health care sector which strengthened 387.3 points (or 0.2%) to 188,934.5. Representing a weighting of about 52.9% of the sector, the stock accounted for the gain. Trading volume was 76% of average at the end of the day. Compared with the FTSE MIB Index which rose 213.6 points (or 1%) in the day, this represented a relative price change of -0.5%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.6 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the Italian market, the stock's relative price strength percentile is improving at 63 for 6 months, 65 for 3 months and 77 for 1 month.

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

+ The present value of EUR1,000 invested one year ago is EUR1,494 [vs EUR1,304 for the FTSE MIB Index].

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


+ Price/Earnings/Growth of 1.71 [1.9]

+ Return on Equity 26.3% [19.5%]

+ Return on Assets 15.2% [10.8%]

+ Return on Capital Employed 25.4% [19.2%]

Other Bullish Signals include:

+ Total Liabilities/EBITDA of 2.1 is comfortably below the Joseph Piotroski benchmark of <5.

+ Net profit margin has averaged 18.6% in the last 3 years. This is considered superior and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity is high at 26.3%. Also, this has improved from 22.9% last year.


Bearish Signals:

The price decreased 0.2% in the last week.

Tobin's Q Ratio is 5.3. Compared with the rest of the market the stock is overvalued and ranks in the bottom 1% of stocks by value of Q Ratio.


The 1.6% discount to 12-month high of EUR40.35 against the 63.5% premium to 12-month low of EUR24.29 suggests the climb might be peaking.


Afternoon Alert: Recordati decreases 0.3%, leads Health care sector lower

20 October 2017 14:09 CEST

Recordati (MI:REC) has decreased 0.3% to trade at EUR39.43 vs. the Health care sector which weakened 275.9 points (or 0.1%) to 188,271.3. Representing a weighting of about 52.7% of the sector, the stock accounted for 88.9% of today's loss. Trading volume was 90% of average so far today.

Afternoon Alert: Recordati decreases 0.5%, leads Health care sector lower

20 October 2017 12:09 CEST

Recordati (MI:REC) has decreased 0.5% to trade at EUR39.32 vs. the Health care sector which weakened 918.4 points (or 0.5%) to 187,628.8. Representing a weighting of about 52.8% of the sector, the stock accounted for 57.2% of today's loss.

Recordati (MI:REC; BIT:REC; IM:REC)

ISIN: IT0003828271

PermID: 4295875399