Brazilian stock alert

BRAZ

CLOSING UPDATE: Bco Estado Do Rio Grande Do Sul hits 52-week low third time in one month 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).

Bco Estado Do Rio Grande Do Sul, Brazil's 10th largest bank by market capitalisation, hit a 52-week low of R$13.15 earlier today for the third time in the past one month, but later rebounded higher to R$13.20. Trading volume was 1.2 times average at the end of the day. Compared with the Brazil Index 50 which fell 151.6 points (or 1.3%) in the day, this represented a relative price change of -4.1%.

Technical indicators complementing today's significant downtrend:

+ The negative 1.35 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The stock has underperformed 92% of the Brazilian market over the past 6 months.

+ The price tumbled 7.7% in the last week and plummeted 22.8% in the last month.

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

Overvaluation:

+ Price/Earnings of 8.2 [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

Bullish Signals:

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.

Oversold/Bullish:

The 0.4% premium to 12-month low of R$13.15 against the 57.5% discount to high of R$31.06 suggests the decline might be bottoming.

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

Undervaluation:

Price to Book of 0.5 [1.2]

Dividend yield of 8% [3.6%]

TODAY'S ALERT

Afternoon Alert: Bco Estado Do Rio Grande Do Sul hits 52-week low third time in one month

15 June 2018 13:07 BRT

Banco do Estado do Rio Grande do Sul SA (SA:BRSR3) hit a 52-week low of R$13.40 today for the third time in the past one month and last traded at R$13.40. Trading volume was 2.2 times average so far today.

Banco do Estado do Rio Grande do Sul SA (SA:BRSR3; SAO:BRSR3; BZ:BRSR3)

ISIN: BRBRSRACNOR3

PermID: 4295860083

Source: www.BuySellSignals.com