Brazilian stock alert

BRAZ

CLOSING UPDATE: Whirlpool Preference Shares sinks further 5.8%, led Home furnishings sector lower 19 January 2018 18:34 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).

Whirlpool Preference Shares, Brazil's 2nd largest home furnishings company by market capitalisation, has tumbled 6.7% to trade at R$4.73 vs. the Home furnishings sector which weakened 155.3 points (or 1.5%) to 9,961.2. Representing a weighting of about 23.1% of the sector, the preference stock accounted for the loss. The preference shares have underperformed 95% of the market in the past week. Trading volume was 20% of average at the end of the day. Compared with the Brazil Index 50 which rose 39.0 points (or 0.3%) in the day, this represented a relative price change of -7.0%.

Technical indicators complementing today's significant downtrend:

+ The price sank 5.4% in the last week and 5.0% in the last month.

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

Overvaluation:

+ Price/Earnings of 22.8 [11.7]

Other Bearish Signals include:

+ Net profit margin has averaged 4.6% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

+ As per the Du Pont analysis, Return on Equity of 12.9% is lower than sector average of 13.3%.

Note

Whirlpool Preference Shares today is at a discount of 16.3% to the 12-month high of R$5.65 on 08 Nov, 2017. It is at a premium of 52.2% to the 12-month low of R$3.11 on 30 Jan, 2017.

Bullish Signals:

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

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

The present value of BRL1,000 invested one year ago is R$1,721 [vs R$1,281 for the Brazil Index 50].

The company is cash rich with Cash to Market Capitalisation at 18.0%.

Tobin's Q Ratio is 0.3. Compared with the rest of the market the preference stock is undervalued.

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

Undervaluation:

Price/Sales of 0.2 [0.4]

Price to Book of 1 [1.7]

Dividend yield of 11.8% [8.1%]

TODAY'S ALERT

Afternoon Alert: Whirlpool Preference Shares decreases 1.0%, leads Home furnishings sector lower

19 January 2018 12:10 BRST

Whirlpool SA (SA:WHRL4) has decreased 1.0% to trade at R$5.02 vs. the Home furnishings sector which weakened 24.4 points (or 0.2%) to 10,092.1. Representing a weighting of about 24.2% of the sector, the preference stock accounted for 99.6% of today's loss. Trading volume was 36% of average so far today.

Whirlpool SA (SA:WHRL4; SAO:WHRL4; BZ:WHRL4)

ISIN: BRWHRLACNPR2

Source: www.BuySellSignals.com