Brazilian stock alert

BRAZ

CLOSING UPDATE: Via Varejo soars 12.7% on strong volume 18 October 2017 18:34 BRST

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).

Via Varejo, Brazil's 2nd largest household products/wares company by market capitalisation, traded on heavy volume of 2.9 times average today while the price soared 88.0 centavos (or 12.7%) to trade at R$7.79. Compared with the Brazil Index 50 which rose 61.2 points (or 0.5%) in the day, this represented a relative price increase of 12.3%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.4 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The stock has outperformed 98% of the Brazilian market over the past 6 months.

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

+ The present value of BRL1,000 invested one year ago is R$3,180 [vs R$1,199 for the Brazil Index 50].

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

Undervaluation:

+ Price/Sales of 0.2 [0.5]

+ Price to Book of 5.4 [8.3]

Other Bullish Signals include:

+ Tobin's Q Ratio is 0.3. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stock by value of Q Ratio.

Note

Via Varejo today is at a discount of 9.9% to the 12-month high of R$8.65 on 05 Oct, 2017. It is at a premium of 270.9% to the 12-month low of R$2.10 on 14 Nov, 2016.

Bearish Signals:

The price sank 5.9% in the last week.

Net profit margin has averaged 1.1% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

TODAY'S ALERTS

Afternoon Alert: Via Varejo inches higher, resistance at 12-day EMA

18 October 2017 14:09 BRST

Via Varejo S.A. (SA:VVAR4) has jumped 9.6% but fell short of the 12-day Exponential Moving Average [EMA] of R$7.60.

Afternoon Alert: Via Varejo inches higher, resistance at 12-day EMA

18 October 2017 12:10 BRST

Via Varejo S.A. (SA:VVAR4) has jumped 7.4% but fell short of the 12-day Exponential Moving Average [EMA] of R$7.57.

RECENT ALERTS

CLOSING UPDATE: Via Varejo keeps sliding: down 16.8% in 3 days

16 October 2017 18:36 BRST

Via Varejo, Brazil's 2nd largest household products/wares company by market capitalisation, extended its slide on Monday, shedding an additional 57.0 centavos (or 7.5%) to trade at R$7.0. Trading volume was 6.2 times average at the end of the day. The shares have fallen R$1.41 (or 16.8%) over the past three trading days vs. the Brazil Index 50 which has fallen 0.02% in the same period.

Afternoon Alert: Via Varejo sinks 4.4% - underperforming 100% of stocks

16 October 2017 14:09 BRST

Via Varejo S.A. (SA:VVAR4) has sunk 33.0 centavos (or 4.4%) today to trade at R$7.24 and has underperformed 100% of the market in the past week.

Via Varejo S.A. (SA:VVAR4; SAO:VVAR4; BZ:VVAR4)

ISIN: BRVVARACNPR8

Source: www.BuySellSignals.com