Brazilian stock alert

BRAZ

CLOSING UPDATE: Smiles lifts 3.6%, led Transportation sector higher 20 October 2017 18:36 BRST

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).

Smiles, Brazil's largest transportation company by market capitalisation, has lifted 3.6% to trade at R$92.82 vs. the Transportation sector which strengthened 159.7 points (or 1.3%) to 12,550.8. Representing a weighting of about 51.4% of the sector, the stock accounted for the gain. The shares have outperformed 90% of the market in the past week. Trading volume was 2.2 times average at the end of the day. Compared with the Brazil Index 50 which rose 11.5 points (or 0.09%) in the day, this represented a relative price increase of 3.5%.

Technical indicators complementing today's significant uptrend:

+ The positive 3.72 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the Brazilian market, the stock's relative price strength percentile is rising at 87 for 6 months, 87 for 3 months and 96 for 1 month.

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

+ The price climbed 4.8% in the last week and soared 16.0% in the last month.

+ The present value of BRL1,000 invested one year ago is R$1,872 [vs R$1,194 for the Brazil Index 50].

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

Undervaluation:

+ Price/Earnings of 20.9 [24.7]

+ Dividend yield of 4.8% [2.7%]

Other Bullish Signals include:

+ Total Liabilities/EBITDA of 1.6 is comfortably below the Joseph Piotroski benchmark of <5.

+ Net profit margin has averaged 11.6% in the last 3 years. This is better than the sector average of 7.1% and suggests a high margin of safety.

Note

Bearish Signals:

Tobin's Q Ratio is 6. Compared with the rest of the market the stock is overvalued and ranks in the bottom 3% of stocks by value of Q Ratio.

Overbought/Bearish:

The 0.8% discount to 12-month high of R$93.61 against the 157.5% premium to 12-month low of R$36.05 suggests the climb might be peaking.

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

Overvaluation:

Price/Earnings/Growth of 0.67 [0.5]

Price/Sales of 7.4 [3.4]

Price to Book of 19.1 [7.4]

TODAY'S ALERTS

Afternoon Alert: Smiles keeps rising: up 7.0% in 3 days

20 October 2017 14:08 BRST

Smiles SA (SA:SMLE3) extended its gains on Friday, rising an additional R$2.98 (or 3.3%) to trade at R$92.58. Trading volume was 1.9 times average so far today. The shares have risen R$6.08 (or 7.0%) over the past three trading days vs. the Brazil Index 50 which has risen 0.7% in the same period.

Afternoon Alert: Smiles lifts 2.8%, leads Transportation sector higher

20 October 2017 12:10 BRST

Smiles SA (SA:SMLE3) has lifted 2.8% to trade at R$92.07 vs. the Transportation sector which strengthened 142.5 points (or 1.1%) to 12,533.5. Representing a weighting of about 51.0% of the sector, the stock accounted for the gain. The shares have outperformed 92% of the market in the past week. Trading volume was 87% of average so far today.

RECENT ALERTS

CLOSING UPDATE: Smiles increases further 1.2% - outperforming 90% of stocks

18 October 2017 18:34 BRST

Smiles, Brazil's largest transportation company by market capitalisation, has lifted R$2.85 (or 3.3%) today to trade at R$89.35 and has outperformed 90% of the market in the past month. A price rise combined with a high relative strength is a bullish signal. Compared with the Brazil Index 50 which rose 61.2 points (or 0.5%) in the day, this represented a relative price increase of 2.8%.

Afternoon Alert: Smiles lifts 2.1% - outperforming 89% of stocks

18 October 2017 14:09 BRST

Smiles SA (SA:SMLE3) has lifted R$1.81 (or 2.1%) today to trade at R$88.31 and has outperformed 89% of the market in the past month. A price rise combined with a high relative strength is a bullish signal.

Smiles SA (SA:SMLE3; SAO:SMLE3; BZ:SMLE3)

ISIN: BRSMLEACNOR1

PermID: 5038059796

Source: www.BuySellSignals.com