Brazilian stock alert

BRAZ

CLOSING UPDATE: Cia Hering climbs 5.8% - outperforming 96% of stocks 21 September 2018 17:36 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).

Cia Hering, Brazil's largest textiles company by market capitalisation, has climbed 92.0 centavos (or 5.8%) today to trade at R$16.72 and has outperformed 96% 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 195.6 points (or 1.5%) in the day, this represented a relative price increase of 4.3%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.02 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The price soared 14.0% in the last week and climbed 4.0% in the last month.

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

Undervaluation:

+ Return on Equity 21.4% [7.2%]

+ Return on Assets 17.1% [3.4%]

+ Return on Capital Employed 24.6% [11.0%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 10.7 times.

+ Total Liabilities/EBITDA of 1.1 is comfortably below the Joseph Piotroski benchmark of <5.

+ Tobin's Q Ratio is 1.8. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 16% in the last 3 years. This is considered superior and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity is high at 21.4%. Also, this has improved from 16.5% last year.

Note

Cia Hering today is at a discount of 47.2% to the 12-month high of R$31.70 on 25 Oct, 2017. It is at a premium of 19.3% to the 12-month low of R$14.01 on 12 Jul, 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$620 [vs R$1,054 for the Brazil Index 50].

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

Overvaluation:

Price/Earnings of 10.2 [8.3]

Price/Sales of 1.7 [0.4]

Price to Book of 2.4 [0.7]

Dividend yield of 4.1% [7.0%]

TODAY'S ALERT

Afternoon Alert: Cia Hering climbs 4.7%, leads Textiles sector higher

21 September 2018 13:10 BRT

Cia Hering (SA:HGTX3) has climbed 4.7% to trade at R$16.55 vs. the Textiles sector which strengthened 39.6 points (or 3.5%) to 1,166.6. Representing a weighting of about 75.0% of the sector, the stock accounted for the gain. The shares have outperformed 95% of the market in the past week. Trading volume was 2.5 times average so far today.

RECENT ALERTS

CLOSING UPDATE: Cia Hering decreases gains by 1.5%, led Textiles sector higher

19 September 2018 17:35 BRT

Cia Hering, Brazil's largest textiles company by market capitalisation, has lifted 3.5% to trade at R$15.96 vs. the Textiles sector which strengthened 31.6 points (or 2.9%) to 1,141.4. Representing a weighting of about 73.9% of the sector, the stock accounted for 90.8% of today's gain. The shares have outperformed 90% of the market in the past week. Compared with the Brazil Index 50 which fell 19.8 points (or 0.1%) in the day, this represented a relative price increase of 3.7%.

Afternoon Alert: Cia Hering climbs 5.1%, leads Textiles sector higher

19 September 2018 13:09 BRT

Cia Hering (SA:HGTX3) has climbed 5.1% to trade at R$16.20 vs. the Textiles sector which strengthened 43.1 points (or 3.9%) to 1,152.9. Representing a weighting of about 74.2% of the sector, the stock accounted for 96.5% of today's gain. The shares have outperformed 90% of the market in the past week. Trading volume was 2.1 times average so far today.

Cia Hering (SA:HGTX3; SAO:HGTX3; BZ:HGTX3)

ISIN: BRHGTXACNOR9

PermID: 4295859776

Source: www.BuySellSignals.com