Brazilian stock alert

BRAZ

CLOSING UPDATE: Light keeps rising: up 17.8% in 4 days 17 August 2018 17:38 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).

Light, Brazil's 17th largest electric company by market capitalisation, extended its gains on Friday, rising an additional 55.0 centavos (or 4.1%) to trade at R$13.90. Trading volume was 4.3 times average at the end of the day. The shares have risen R$2.10 (or 17.8%) over the past four trading days vs. the Brazil Index 50 which has fallen 2.0% in the same period.

Technical indicators complementing today's significant uptrend:

+ The positive 0.18 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the Brazilian market, the stock's relative price strength percentile is improving at 58 for 6 months, 77 for 3 months and 99 for 1 month.

+ The price soared 14.8% in the last week and 23.8% in the last month.

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

Light today is at a discount of 38.0% to the 12-month high of R$22.42 on 12 Sep, 2017. It is at a premium of 35.0% to the 12-month low of R$10.30 on 07 Jun, 2018.

Bearish Signals:

In the last three months the stock has hit a new 52-week low four times, pointing to a downtrend.

The present value of BRL1,000 invested one year ago is R$683 [vs R$1,120 for the Brazil Index 50].

Net profit margin has averaged 1.4% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

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

Overvaluation:

Dividend yield of 1% [2.9%]

Return on Capital Employed 5.4% [12.9%]

TODAY'S ALERTS

Afternoon Alert: Light keeps rising: up 17.2% in 4 days

17 August 2018 13:07 BRT

Light SA (SA:LIGT3) extended its gains on Friday, rising an additional 48.0 centavos (or 3.6%) to trade at R$13.83. Trading volume was 3.6 times average so far today. The shares have risen R$2.03 (or 17.2%) over the past four trading days vs. the Brazil Index 50 which has fallen 2.4% in the same period.

Morning Alert: Light jumps 7.4%, leads Public Utilities index higher

17 August 2018 11:10 BRT

Light SA (SA:LIGT3) has jumped 7.4% to trade at R$14.34 vs. the Public Utilities index which strengthened 14.6 points (or 0.3%) to 4,130.3. Representing a weighting of about 1.9% of the index, the stock accounted for 39.5% of today's gain. The shares have outperformed 99% of the market in the past week. Trading volume was 3.0 times average so far today.

RECENT ALERTS

CLOSING UPDATE: Light keeps rising: up 13.1% in 3 days

16 August 2018 17:36 BRT

Light, Brazil's 15th largest electric company by market capitalisation, extended its gains on Thursday, rising an additional 68.0 centavos (or 5.4%) to trade at R$13.35. Trading volume was 2.1 times average at the end of the day. The shares have risen R$1.55 (or 13.1%) over the past three trading days vs. the Brazil Index 50 which has fallen 1.0% in the same period.

Morning Alert: Light keeps rising: up 11.6% in 3 days

16 August 2018 11:10 BRT

Light SA (SA:LIGT3) extended its gains on Thursday, rising an additional 50.0 centavos (or 3.9%) to trade at R$13.17. Trading volume was 1.4 times average so far today. The shares have risen R$1.37 (or 11.6%) over the past three trading days vs. the Brazil Index 50 which has fallen 0.3% in the same period.

Light SA (SA:LIGT3; SAO:LIGT3; BZ:LIGT3)

ISIN: BRLIGTACNOR2

PermID: 4295859713

Source: www.BuySellSignals.com