Brazilian stock alert


CLOSING UPDATE: Braskem Preference Shares Series A hits 52-week high ninth time in one month 17 October 2017 18:35 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).

Braskem Preference Shares Series A, Brazil's 3rd largest chemicals company by market capitalisation, hit a 52-week high of R$47.51 today for the ninth time in the past one month and last traded at R$46.31. Trading volume was 1.5 times average at the end of the day. Compared with the Brazil Index 50 which fell 112.3 points (or 0.9%) in the day, this represented a relative price change of -0.2%.

Technical indicators complementing today's significant uptrend:

+ The positive 1.57 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The 2.5% discount to 12-month high of R$47.51 against the 78.2% premium to 12-month low of R$25.99 suggests the preference stock continues to push for new highs.

+ The preference stock has outperformed 83% of the Brazilian market over the past 6 months.

+ In the last one month the preference stock has hit a new 52-week high nine times and in the last three months fifteen times, pointing to a significant uptrend.

+ The price increased 1.5% in the last week and soared 12.1% in the last month.

+ The present value of BRL1,000 invested one year ago is R$1,674 [vs R$1,214 for the Brazil Index 50].

Other Bullish Signals include:

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


Bearish Signals:

Net profit margin has averaged 2% in the last 3 years. This suggests the company is less profitable with a low margin of safety.


Afternoon Alert: Braskem Preference Shares Series A keeps rising: up 3.3% in 4 days

17 October 2017 12:10 BRST

Braskem SA (SA:BRKM5) extended its gains on Tuesday, rising an additional 33.0 centavos (or 0.7%) to trade at R$47.13. Trading volume was 89% of average so far today.