Brazilian stock alert


CLOSING UPDATE: Telefonica Brasil SA Preference Shares increases 0.5%, led Telecommunication sector higher 18 October 2017 18:34 BRST


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).

Telefonica Brasil SA Preference Shares, Brazil's largest telecommunication company by market capitalisation, has increased 0.5% to trade at R$51.21 vs. the Telecommunication sector which strengthened 3.1 points (or 0.4%) to 753.8. Representing a weighting of about 49.4% of the sector, the preference stock accounted for 66.3% of today's gain. Compared with the Brazil Index 50 which rose 61.2 points (or 0.5%) in the day, this represented a relative price increase of 0.1%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.38 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The 3.0% discount to 12-month high of R$52.77 against the 32.5% premium to 12-month low of R$38.64 suggests the preference stock continues to push for new highs.

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

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


+ Price to Book of 2.3 [2.8]

+ Dividend yield of 4.1% [3.1%]

Other Bullish Signals include:

+ Total Liabilities/EBITDA of 4.7 is less than the Joseph Piotroski benchmark of <5.

+ Tobin's Q Ratio is 0.6. Compared with the rest of the market the preference stock is undervalued.

+ Net profit margin has averaged 10.7% in the last 3 years. This is better than the sector average of 9.5% and suggests a high margin of safety.


Bearish Signals:

The price decreased 0.8% in the last week and 1.0% in the last month.

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


Price/Sales of 1.4 [0.7]


Afternoon Alert: Telefonica Brasil SA Preference Shares inches higher, resistance at 12-day EMA

18 October 2017 12:10 BRST

Telefonica Brasil SA (SA:VIVT4) has increased 0.02% but fell short of the 12-day Exponential Moving Average [EMA] of R$51.05.

Telefonica Brasil SA (SA:VIVT4; SAO:VIVT4; BZ:VIVT4)