UK stock alert


Afternoon Alert: British American Tobacco down 2.8% in 2 days 25 July 2017 13:22 BST


British American Tobacco PLC (L:BATS) extended its slide on Tuesday, shedding an additional GBX84.0 (or 1.6%) to trade at GBX5,329.0. Trading volume was 2.3 times average so far today. The shares have fallen GBX156.0 (or 2.8%) over the past two trading days vs. the FTSE 100 Index which has fallen 0.2% in the same period.

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

+ The negative 3.94 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The price dropped 2.7% in the last month.

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


+ Price/Sales of 5.4 [2.9]

Other Bearish Signals include:

+ Tobin's Q Ratio is 2.5. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.


The stock has outperformed 58% of the United Kingdom market over the past 6 months.

Bullish Signals:

The 5.6% discount to 12-month high of GBX5,643.60 against the 28.7% premium to 12-month low of GBX4,140.49 suggests the stock continues to push for new highs.

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

Interest cover is less leveraged at 10.2 times.

Net profit margin has averaged 30.5% in the last 3 years. This is considered superior and suggests a high margin of safety.

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


Return on Assets 12.2% [7.3%]

British American Tobacco PLC (L:BATS; LON:BATS; LN:BATS)

ISIN: GB0002875804

PermID: 4295894777