Canadian stock alert

CANA

CLOSING UPDATE: Constellation Software increases further 0.8% - outperforming 90% of stocks 18 January 2018 18:25 EST

NEWS BITES - NORTH AMERICA

This is an end of day Alert, produced after today's Canadian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Constellation Software, Canada's 2nd largest application software company by market capitalisation, has increased CAD12.34 (or 1.6%) today to trade at CAD798.10 and has outperformed 90% of the market in the past week. A price rise combined with a high relative strength is a bullish signal. Compared with the S&P/TSX 60 Index which fell 1.6 points (or 0.2%) in the day, this represented a relative price increase of 1.7%.

Technical indicators complementing today's significant uptrend:

+ The positive 3.28 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

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

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

Undervaluation:

+ Return on Equity 45.2% [15.4%]

+ Return on Assets 11% [7.1%]

+ Return on Capital Employed 30.5% [9.0%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 14.3 times.

+ Total Liabilities/EBITDA of 2.7 is comfortably below the Joseph Piotroski benchmark of <5.

+ As per the Du Pont analysis, Return on Equity is high at 45.2%.

Note

Bearish Signals:

Tobin's Q Ratio is 7.2. Compared with the rest of the market the stock is overvalued and ranks in the bottom 10% of stocks by value of Q Ratio.

Net profit margin has averaged 8.5% in the last 3 years. This is lower than the sector average of 11.4% and suggests a low margin of safety.

Overbought/Bearish:

The 0.1% discount to 12-month high of CAD799.24 against the 39.0% premium to 12-month low of CAD574.19 suggests the climb might be peaking.

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

Overvaluation:

Price/Earnings of 64.2 [27.0]

Price/Earnings/Growth of 2.11 [0.6]

Price/Sales of 5.8 [3.0]

TODAY'S ALERTS

Afternoon Alert: Constellation Software increases 0.8% - outperforming 96% of stocks

18 January 2018 14:45 EST

Constellation Software Inc. (TSX:CSU) has increased CAD5.99 (or 0.8%) today to trade at CAD791.75 and has outperformed 96% of the market in the past week. A price rise combined with a high relative strength is a bullish signal.

Afternoon Alert: Constellation Software increases 0.4% - outperforming 97% of stocks

18 January 2018 12:16 EST

Constellation Software Inc. (TSX:CSU) has increased CAD3.34 (or 0.4%) today to trade at CAD789.10 and has outperformed 97% of the market in the past week. A price rise combined with a high relative strength is a bullish signal.

RECENT ALERTS

CLOSING UPDATE: Constellation Software increases further 0.7% on strong volume

16 January 2018 18:24 EST

Constellation Software, Canada's 2nd largest application software company by market capitalisation, traded on heavy volume of 2.6 times average today while the price jumped CAD50.87 (or 6.9%) to trade at CAD787.87. Compared with the S&P/TSX 60 Index which fell 3.7 points (or 0.4%) in the day, this represented a relative price increase of 7.3%.

Afternoon Alert: Constellation Software jumps 6.2% on high volume

16 January 2018 14:47 EST

Constellation Software Inc. (TSX:CSU) traded on heavy volume of 2.4 times average so far today while the price jumped CAD45.78 (or 6.2%) to trade at CAD782.78.

Constellation Software Inc. (T:CSU; TSE:CSU; N:CSU; CN:CSU)

ISIN: CA21037X1006

PermID: 4295861824

CIK: Constellation Software Inc.

Source: www.BuySellSignals.com