Italian stock alert

ITALY

Afternoon Alert: Geox keeps sliding: down 7.3% in 3 days 19 January 2018 13:08 CET

NEWS BITES - EUROPE

Geox (MI:GEO) extended its slide on Friday, shedding an additional 18.0c (or 6.3%) to trade at EUR2.67. Trading volume was 4.6 times average so far today. The shares have fallen 21.0c (or 7.3%) over the past three trading days vs. the FTSE MIB Index which has risen 1.6% in the same period.

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

+ The negative 0.04 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ In the Italian market, the stock's relative price strength percentile is slipping at 11 for 6 months, 3 for 3 months and 2 for 1 month.

+ The price tumbled 7.3% in the last week and 9.2% in the last month.

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

Overvaluation:

+ Return on Capital Employed 3.2% [13.3%]

+ Return on Assets 0.3% [1.2%]

Other Bearish Signals include:

+ Net profit margin has averaged 0.3% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

+ EBITDA growth has shown signs of deterioration in recent years.

Note

Geox today is at a discount of 31.9% to the 12-month high of EUR3.92 on 03 Nov, 2017. It is at a premium of 43.1% to the 12-month low of EUR1.87 on 08 Feb, 2017.

Bullish Signals:

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

Tobin's Q Ratio is 1. Compared with the rest of the market the stock is undervalued.

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

Undervaluation:

Dividend yield of 0.8% [0.5%]

Geox (MI:GEO; BIT:GEO; IM:GEO)

ISIN: IT0003697080

PermID: 4295875840

Source: www.BuySellSignals.com