Brazilian stock alert

BRAZ

CLOSING UPDATE: BB Seguridade Participacoes decreases 0.4%, led Insurance sector lower 17 August 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, has decreased 0.4% to trade at R$25.90 vs. the Insurance sector which weakened 27.6 points (or 0.09%) to 29,122.6. Representing a weighting of about 59.1% of the sector, the stock accounted for the loss. Compared with the Brazil Index 50 which fell 123.2 points (or 1%) in the day, this represented a relative price increase of 0.5%.

Technical indicators complementing today's significant downtrend:

+ In the last three months the stock has hit a new 52-week low four times, pointing to a downtrend.

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

Overvaluation:

+ Price/Earnings/Growth of 2.34 [1.2]

+ Price to Book of 5.8 [4.4]

Other Bearish Signals include:

+ Tobin's Q Ratio is 3.9. Compared with the rest of the market the stock is overvalued and ranks in the bottom 3% of stocks by value of Q Ratio.

Note

BB Seguridade Participacoes today is at a discount of 15.2% to the 12-month high of R$30.53 on 26 Jan, 2018. It is at a premium of 13.3% to the 12-month low of R$22.86 on 27 Jun, 2018.

Bullish Signals:

The positive 0.25 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

In the Brazilian market, the stock's relative price strength percentile is improving at 51 for 6 months, 75 for 3 months and 79 for 1 month.

The price soared 12.1% in the last week and climbed 4.5% in the last month.

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%.

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

Undervaluation:

Dividend yield of 9.7% [7.8%]

Return on Equity 45.5% [29.7%]

Return on Assets 30.4% [12.3%]

TODAY'S ALERT

Morning Alert: BB Seguridade Participacoes keeps rising: up 13.0% in 5 days

17 August 2018 11:10 BRT

BB Seguridade Participacoes SA (SA:BBSE3) extended its gains on Friday, rising an additional 10.0 centavos (or 0.4%) to trade at R$26.11. Trading volume was 38% of average so far today. The shares have risen R$3.01 (or 13.0%) over the past five trading days vs. the Brazil Index 50 which has fallen 0.7% in the same period.

RECENT ALERTS

CLOSING UPDATE: BB Seguridade Participacoes increases further 0.3%, led Insurance sector higher

16 August 2018 17:36 BRT

BB Seguridade Participacoes, Brazil's largest insurance company by market capitalisation, has lifted 2.2% to trade at R$26.01 vs. the Insurance sector which strengthened 421.4 points (or 1.5%) to 29,150.1. Representing a weighting of about 59.3% of the sector, the stock accounted for 88.8% of today's gain. The shares have outperformed 94% of the market in the past week. Trading volume was 2.2 times average at the end of the day. Compared with the Brazil Index 50 which fell 46.5 points (or 0.4%) in the day, this represented a relative price increase of 2.6%.

Afternoon Alert: BB Seguridade Participacoes increases 1.8%, leads Insurance sector higher

16 August 2018 13:07 BRT

BB Seguridade Participacoes SA (SA:BBSE3) has increased 1.8% to trade at R$25.92 vs. the Insurance sector which strengthened 280.2 points (or 1%) to 29,009.0. Representing a weighting of about 59.4% of the sector, the stock accounted for the gain. The shares have outperformed 96% of the market in the past week. Trading volume was 2.6 times average so far today.

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

ISIN: BRBBSEACNOR5

PermID: 21523028356

Source: www.BuySellSignals.com