Brazilian stock alert

BRAZ

CLOSING UPDATE: Banco do Estado do Rio Grande do Sul Preference Shares Series B accelerates slide, now down 7.9% in 2 days 15 June 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).

Banco do Estado do Rio Grande do Sul Preference Shares Series B, Brazil's 9th largest bank by market capitalisation, is down R$1.15 (or 7.9%) over the past two trading days. After falling 2.1% on Thursday, the preference stock fell 5.9% on Friday to trade at R$13.40 vs. the Brazil Index 50 that is down 2.2% in the same period.

Technical indicators complementing today's significant downtrend:

+ The negative 1.27 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The price plummeted 23.0% in the last month.

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

Overvaluation:

+ Price/Earnings of 8.3 [6.1]

+ Return on Equity 11.8% [13.7%]

+ Return on Assets 1.1% [1.3%]

Other Bearish Signals include:

+ As per the Du Pont analysis, Return on Equity of 11.8% is lower than sector average of 13.7%.

Note

Banco do Estado do Rio Grande do Sul Preference Shares Series B today is at a discount of 38.5% to the 12-month high of R$21.78 on 26 Mar, 2018. It is at a premium of 15.5% to the 12-month low of R$11.60 on 21 Jun, 2017.

The preference stock has outperformed 55% of the Brazilian market over the past 6 months.

Bullish Signals:

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

Net profit margin has averaged 13.6% in the last 3 years. This is better than the sector average of 11.2% and suggests a high margin of safety.

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

Undervaluation:

Price to Book of 0.5 [1.2]

Dividend yield of 7.8% [3.6%]

TODAY'S ALERTS

Afternoon Alert: Banco do Estado do Rio Grande do Sul Preference Shares Series B accelerates slide, now down 7.3% in 2 days

15 June 2018 13:07 BRT

Banco do Estado do Rio Grande do Sul SA (SA:BRSR6) is down R$1.06 (or 7.3%) over the past two trading days. After falling 2.1% on Thursday, the preference stock fell 5.3% on Friday to trade at R$13.49 vs. the Brazil Index 50 that is down 2.6% in the same period.

Morning Alert: Banco do Estado do Rio Grande do Sul Preference Shares Series B accelerates slide, now down 5.5% in 2 days

15 June 2018 11:10 BRT

Banco do Estado do Rio Grande do Sul SA (SA:BRSR6) is down 80.0 centavos (or 5.5%) over the past two trading days. After falling 2.1% on Thursday, the preference stock fell 3.4% on Friday to trade at R$13.75 vs. the Brazil Index 50 that is down 1.5% in the same period.

Banco do Estado do Rio Grande do Sul SA (SA:BRSR6; SAO:BRSR6; BZ:BRSR6)

ISIN: BRBRSRACNPB4

PermID: 4295860083

Source: www.BuySellSignals.com