Brazilian stock alert

BRAZ

CLOSING UPDATE: VALE decreases 0.4%, led Basic Materials index lower 20 April 2018 17:35 BRT

NEWS BITES - BRIC

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

VALE, Brazil's largest iron/steel company by market capitalisation, has decreased 0.4% to trade at R$47.63 vs. the Basic Materials index which weakened 16.6 points (or 0.5%) to 3,197.5. Representing a weighting of about 65.5% of the index, the stock accounted for 52.6% of today's loss. Trading volume was 71% of average at the end of the day. Compared with the Brazil Index 50 which fell 49.5 points (or 0.3%) in the day, this represented a relative price change of -0.1%.

Technical indicators complementing today's significant downtrend:

+ The 1.1% discount to 12-month high of R$48.17 against the 90.5% premium to 12-month low of R$25.0 suggests the climb might be peaking.

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

Overvaluation:

+ Price/Sales of 2.7 [1.1]

+ Price to Book of 2.2 [1.8]

Note

Bullish Signals:

The positive 1.18 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

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

The price climbed 5.9% in the last week and soared 14.5% in the last month.

The present value of BRL1,000 invested one year ago is R$1,832 [vs R$1,346 for the Brazil Index 50].

Total Liabilities/EBITDA of 4.1 is less than the Joseph Piotroski benchmark of <5.

Tobin's Q Ratio is 0.8. Compared with the rest of the market the stock is undervalued.

The Brand Value represents 3.4% of the estimated Enterprise Value of R$336.4 billion (US$99.3 billion).

As per the Du Pont analysis, Return on Equity of 12.7% is better than sector average of 1.0%.

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

Undervaluation:

Dividend yield of 2.8% [1.7%]

Return on Capital Employed 16.1% [6.6%]

TODAY'S ALERT

Morning Alert: VALE keeps rising: up 7.4% in 4 days

20 April 2018 11:10 BRT

Vale SA (SA:VALE3) extended its gains on Friday, rising an additional 1.0 centavos (or 0.02%) to trade at R$47.84. Trading volume was 23% of average so far today. The shares have risen R$3.30 (or 7.4%) over the past four trading days vs. the Brazil Index 50 which has risen 3.0% in the same period.

RECENT ALERTS

CLOSING UPDATE: VALE increases further 0.1%, led Iron/Steel sector higher

19 April 2018 17:35 BRT

VALE, Brazil's largest iron/steel company by market capitalisation, has increased 0.7% to trade at R$47.83 vs. the Iron/Steel sector which strengthened 50.1 points (or 0.5%) to 9,462.0. Representing a weighting of about 78.0% of the sector, the stock accounted for the gain. The shares have outperformed 91% of the market in the past week. Trading volume was 1.1 times average at the end of the day. Compared with the Brazil Index 50 which rose 1.7 points (or 0.01%) in the day, this represented a relative price increase of 0.7%.

Afternoon Alert: VALE increases 0.7%, leads Iron/Steel sector higher

19 April 2018 13:08 BRT

Vale SA (SA:VALE3) has increased 0.7% to trade at R$47.80 vs. the Iron/Steel sector which strengthened 52.9 points (or 0.6%) to 9,464.8. Representing a weighting of about 77.9% of the sector, the stock accounted for 93.8% of today's gain. The shares have outperformed 90% of the market in the past week. Trading volume was 1.3 times average so far today.

Vale SA (SA:VALE3; SAO:VALE3; BZ:VALE3)

ISIN: BRVALEACNOR0

PermID: 4295859761

Source: www.BuySellSignals.com