Brazilian stock alert

BRAZ

CLOSING UPDATE: BB Seguridade Participacoes keeps sliding: down 3.3% in 4 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).

BB Seguridade Participacoes, Brazil's largest insurance company by market capitalisation, extended its slide on Friday, shedding an additional 18.0 centavos (or 0.7%) to trade at R$24.66. Trading volume was 1.4 times average at the end of the day.

Technical indicators complementing today's significant downtrend:

+ The negative 0.63 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ In the last three months the stock has hit a new 52-week low thrice.

+ The price tumbled 8.4% in the last month.

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

Overvaluation:

+ Price to Book of 5.5 [4.0]

+ Year-on-Year Earnings Growth of 1% [4.3%]

Other Bearish Signals include:

+ Tobin's Q Ratio is 3.7. Compared with the rest of the market the stock is overvalued and ranks in the bottom 5% of stocks by value of Q Ratio.

Note

The stock has outperformed 50% of the Brazilian market over the past 6 months.

Bullish Signals:

Interest cover is less leveraged at 75.4 times.

Total Liabilities/EBITDA of 0.9 is comfortably below the Joseph Piotroski benchmark of <5.

As per the Du Pont analysis, Return on Equity is high at 45.5%.

Oversold/Bullish:

The 0.1% premium to 12-month low of R$24.63 against the 24.2% discount to high of R$32.55 suggests the decline might be bottoming.

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

Undervaluation:

Price/Earnings/Growth of 2.22 [2.9]

Return on Equity 45.5% [25.5%]

Return on Assets 30.4% [9.3%]

TODAY'S ALERT

Morning Alert: BB Seguridade Participacoes increases 0.6%, leads Insurance sector higher

15 June 2018 11:10 BRT

BB Seguridade Participacoes SA (SA:BBSE3) has increased 0.6% to trade at R$24.99 vs. the Insurance sector which strengthened 83.7 points (or 0.3%) to 26,329.6. Representing a weighting of about 63.1% of the sector, the stock accounted for the gain. Trading volume was 47% of average so far today.

BB Seguridade Participacoes SA (SA:BBSE3; SAO:BBSE3; BZ:BBSE3)

ISIN: BRBBSEACNOR5

PermID: 21523028356

Source: www.BuySellSignals.com