Brazilian stock alert

BRAZ

CLOSING UPDATE: VIAVAREJO up 13.7% in 2 days 26 July 2017 17:33 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).

VIAVAREJO, Brazil's 6th largest retailer company by market capitalisation, extended its gains on Wednesday, rising an additional 34.0 centavos (or 6.2%) to trade at R$5.80. Trading volume was 1.1 times average at the end of the day. The shares have risen 70.0 centavos (or 13.7%) over the past two trading days vs. the Brazil Index 50 which has fallen 0.1% in the same period.

Technical indicators complementing today's significant uptrend:

+ The positive 0.33 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The stock has outperformed 97% of the Brazilian market over the past 6 months.

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

+ The price soared 24.2% in the last week and 48.0% in the last month.

+ The present value of BRL1,000 invested one year ago is R$1,660 [vs R$1,141 for the Brazil Index 50].

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

Undervaluation:

+ Price/Sales of 0.2 [0.9]

Other Bullish Signals include:

+ Tobin's Q Ratio is 0.2. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stock by value of Q Ratio.

Note

Bearish Signals:

Net profit margin has averaged 1.2% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

Overbought/Bearish:

The 0.8% discount to 12-month high of R$5.85 against the 122.4% premium to 12-month low of R$2.61 suggests the climb might be peaking.

TODAY'S ALERT

Afternoon Alert: VIAVAREJO up 14.7% in 2 days

26 July 2017 13:08 BRT

Via Varejo SA (SA:VVAR3) extended its gains on Wednesday, rising an additional 39.0 centavos (or 7.1%) to trade at R$5.85. Trading volume was 55% of average so far today. The shares have risen 75.0 centavos (or 14.7%) over the past two trading days vs. the Brazil Index 50 which has risen 0.3% in the same period.

RECENT ALERTS

CLOSING UPDATE: VIAVAREJO jumped 7.1% - outperforming 98% of stocks

25 July 2017 17:33 BRT

VIAVAREJO, Brazil's 6th largest retailer company by market capitalisation, has jumped 36.0 centavos (or 7.1%) today to trade at R$5.46 and has outperformed 98% of the market in the past week. A price rise combined with a high relative strength is a bullish signal. Compared with the Brazil Index 50 which rose 99.5 points (or 0.9%) in the day, this represented a relative price increase of 6.1%.

Afternoon Alert: VIAVAREJO soars 10.8%, leads Retail sector higher

25 July 2017 13:10 BRT

Via Varejo SA (SA:VVAR3) has soared 10.8% to trade at R$5.65 vs. the Retail sector which strengthened 218.8 points (or 0.7%) to 31,464.0. Representing a weighting of about 4.2% of the sector, the stock accounted for 65.0% of today's gain. The shares have outperformed 99% of the market in the past week. Trading volume was 2.0 times average so far today.

Via Varejo SA (SA:VVAR3; SAO:VVAR3; BZ:VVAR3)

ISIN: BRVVARACNOR1

PermID: 4295859860

Source: www.BuySellSignals.com