Israeli stock alert
Morning Alert: Bezeq The Israeli Telecomunication continues significant uptrend, lifts 2.2% 21 January 2018 11:10 IST
NEWS BITES - MIDDLE EAST & NORTH AFRICA
Bezeq The Israeli Telecomunication Corp. Ltd. (TASE:BEZQ) continued its significant uptrend and lifted 12.50 agorot (or 2.2%) to trade at NIS5.83 today.
SECTION 1: The past week
Current indications of bullish signals that support the trend in the unusual trading
1.1 At a glance
Weekly: Bezeq The Israeli Telecomunication shares post best week in seven months January 18, 2018 17:30 IST
Bezeq The Israeli Telecomunication Corp. Ltd. (TASE:BEZQ), Israel's largest Communications & Media company by market cap, has climbed 51.60 agorot (or 10.0%) in the past week to close at NIS5.70. The shares had their best week in seven months since the week ended Jun 22, 2017. Compared with the TA-25 Index which rose 9.1 points (or 0.6%) in the week, this represented a relative price increase of 9.3%. The volume was 1.4 times average trading per week of 36.6 million shares. In the past week the market cap has risen NIS1.4 billion.
1.2 5-day Recap
Bezeq The Israeli Telecomunication outperformed the TA-25 index in 4 out of 5 days.
|Day||Headline||Close price [NIS]||Price change %||Relative change %||Comment|
|Thursday||Bezeq The Israeli Telecomunication keeps rising, up 10.7% in 3 days||5.7||3.3||3.3|
|Wednesday||Bezeq The Israeli Telecomunication up 7.1% in 2 days||5.52||1.3||1.8|
|Tuesday||Bezeq The Israeli Telecomunication outperforms 86% of the market||5.45||5.7||5.5||Top Rise; VI=2.97|
|Sunday||Bezeq The Israeli Telecomunication increases 1.0%||5.24||1.0||0.1|
|Day||Headline||Close price [NIS]||Price change %||Relative change %||Comment|
|Monday||Bezeq The Israeli Telecomunication drops to one-month low||5.15||-1.7||-1.6||Steepest Fall|
SECTION 2: Technical indicators
The positive 0.09 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal (12-day minus 26-day Exponential Moving Averages). Both the 12-day and the 26-day EMA are rising - another bullish signal. In the past week, the stock's MACD has been positive every day, a reinforcing bullish signal.
In the Israel market, the stock's relative price strength percentile is improving at 67 for 6 months, 71 for 3 months and 83 for 1 month.
The price soared 11.2% in the last week and 14.8% in the last month.
The present value of NIS1,000 invested one year ago is NIS1,018 [vs NIS1,081 for the TA-25 Index], including a capital loss of NIS66 and dividend reinvested of NIS85. The total return to shareholders for 1 year is 1.8%.
Fundamental measures by comparison with the sector average [in brackets] indicate:
Price/Sales of 1.6 [1.6]
Price/Earnings of 12.9 [16.5]
Dividend yield of 8% [6.1%]
Return on Assets 7.8% [4.7%]
Return on Capital Employed 19.8% [12.3%]
Total Liabilities/EBITDA of 3.3 is comfortably below the Joseph Piotroski benchmark of <5.
SECTION 3: Ranking
|Description||Value||Rank In Market|
|MCap $US billion||4.7||In Top 5%|
|Price/MAP200||1.09||In Top Quartile|
|1-month Range (in NIS)||5.0-5.8|
SECTION 4: Earnings
FY2016 Annual Report: Bezeq The Israeli Telecomunication Net Profit down 27.7%
Bezeq The Israeli Telecomunication (TASE:BEZQ) reported net profit for the year-ended 31 December 2016 of NIS1.2b ($US324m), down 27.7% from NIS1.7b ($US441m) in the previous year.
Major changes compared with previous year:
- Current ratio up 16.9% from 0.8 to 0.9
- Fixed Assets to Total Assets up from 41.3% to 43.1%
- Total Liabilities to EBITDA of 3.3 compares favourably with the Joseph Piotroski benchmark of less than 5. - Total Liabilities to Operating Cash Flow of 3.9 compares favourably with the Joseph Piotroski benchmark of less than 4. However, it has deteriorated by 2.4% from the previous year's ratio of 3.8.
- Net profit slumps 27.7% from NIS1.7b ($US440.9m) to NIS1.2b ($US323.5m)
- EPS slumps 27.4% from 62.0agorot (US15.88c) to 45.0agorot (US11.7c)
- EBIT Margin down from 27.0% to 23.6%
- Interest cover down 34.7% from 7.2 to 4.7
- EBIT to total assets down from 16.2% to 14.9%
- Administration expenses to Sales up from 38.7% to 39.8%
- Sales and marketing expenses to Sales up from 19.6% to 20%
- Profit before tax to Sales down from 23.2% to 18.5%
- Debt to Equity up 11.9% from 4.4 to 5.0
- Future income tax benefit to Total Assets down from 7.1% to 6.3%
- Total revenue steady at NIS10.1b ($US2.6b)
- Total revenue to total assets steady at 0.6
- Depreciation to Sales up from 16.9% to 17.2%
- Tax expenses to Sales up from 6% to 6.2%
- Total non-current assets to Total Assets up from 77.5% to 77.7%
- Total current assets to Total Assets down from 22.5% to 22.3%
- Intangibles to Total Assets down from 22.7% to 21.8%
SECTION 5: Recent News of Bezeq The Israeli Telecomunication
January 15: Bezeq - Immediate Report - Eurocom notice regarding filing of application for arrangement
An immediate report is hereby provided that on January 15, 2018 the Company received notice from Eurocom Communications Ltd., the indirect controlling shareholder of the Company, as follows:
1. Eurocom Communications Ltd. ("Eurocom Communications"), the indirect controlling shareholder of the Company, reported today to the Company that an application had been filed by it and by other private companies in the Eurocom Group, with the Tel- Aviv-Jaffa District Court, for an order to convene creditor meetings for the purpose of approving an arrangement pursuant to Section 350 of the Companies Law, 5759-1999, and in accordance with the Companies Regulations (Application for a Settlement or Arrangement), 5762-2002 for the private companies in the Eurocom Group.
January 15: Bezeq - Immediate Report - Debt Raising
A. Undertakings to future issue of Debentures (Series 9)
On January 14, 2018 the Company and a number of institutional bodies recognized as investors according to the First Addendum to the Securities Law, 1968 ("Securities Law") signed subordinated notes whereby, subject to compliance with the contingent terms stipulated below, the institutional investors undertook to purchase from the Company and the Company undertook to issue to the institutional investors, in a future private offering, the Company's Debentures (Series 9), by way of an extension of the existing Debenture series (Series 9) that the Company offered, which have been issued and registered for trading for the first time on the Tel-Aviv Stock Exchange Ltd.
January 08: Bezeq - Immediate Supplementary Report - Approval of sale of property in Sakia
Further to the Company's immediate report of December 6, 2017, regarding negotiations for the sale of the Company's real estate property in the Mesubim Junction complex - "Sakia" (the "Property") and the receipt of a binding and irrevocable offer to purchase the Property, immediate supplementary notification is provided that on January 8, 2018, the Board of Directors of the Company approved the Company's execution of an agreement for the sale of the Property to the same offeror (Naimi Towers Ltd.
January 07: Bezeq - Immediate Report - Demand for payment from Eurocom DBS Ltd.
An Immediate Report is hereby provided that on January 4, 2018 the Company applied in writing to Eurocom DBS Ltd ("Eurocom DBS") with a demand to pay the Company within 21 days the amount of the advance payment on account of the second additional consideration paid to Eurocom DBS by the Company in accordance with the agreement between the parties dated February 16, 2015 for the sale of shareholders' loans and sale of Eurocom DBS shares in D.B.S Satellite Services (1998) Ltd to the Company, with the addition of interest as stipulated in the agreement, after the targets that would entitle Eurocom DBS to the consideration were not met.
January 03: Bezeq - Immediate Report - Notice of declaration of labor dispute/strike or shutdown in Company
Notification is hereby provided that on January 3, 2018, the Company received notice of a strike or shutdown in accordance with the Settlement of Labor Disputes Law, 5717- 1957 (hereinafter, the "Notice"), which was declared and approved by the New General Federation of Labor, as of January 14, 2018.
Bezeq The Israeli Telecomunication Corp. Ltd. (TV:BEZQ; TLV:BEZQ; TA:BEZQ; TA:BEZQ; IT:BEZQ)