Canadian stock alert

CANA

CLOSING UPDATE: Manulife Financial decreases 0.3%, led Insurance - life sector lower all day 18 October 2017 18:16 EDT

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).

Manulife Financial, Canada's largest insurance - life company by market capitalisation, has decreased 0.3% to trade at CAD25.86 vs. the Insurance - life sector which weakened 2.7 points (or 0.2%) to 1,201.5. Representing a weighting of about 42.2% of the sector, the stock accounted for 66.4% of today's loss. Trading volume was 42% of average at the end of the day. Compared with the S&P/TSX 60 Index which fell 2.0 points (or 0.2%) in the day, this represented a relative price change of -0.1%.

Technical indicators complementing today's significant downtrend:

+ The price decreased 0.2% in the last week.

+ The 0.9% discount to 12-month high of CAD26.10 against the 37.5% premium to 12-month low of CAD18.81 suggests the climb might be peaking.

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

Overvaluation:

+ Price to Book of 1.8 [0.2]

+ Dividend yield of 3.1% [4.0%]

+ Return on Equity 7.8% [10.6%]

+ Return on Assets 0.4% [0.6%]

Other Bearish Signals include:

+ As per the Du Pont analysis, Return on Equity is less than stellar at 7.8%.

Note

Bullish Signals:

The positive 0.35 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

In the last three months the stock has hit a new 52-week high four times, pointing to an uptrend.

The company is cash rich with Cash to Market Capitalisation at 29.6%.

Net profit margin has averaged 8.9% in the last 3 years. This is better than the sector average of 5.9% and suggests a high margin of safety.

The Brand Value represents an impressive 8.3% of the estimated Enterprise Value of CAD49.6 billion (US$39.8 billion).

TODAY'S ALERT

Afternoon Alert: Manulife Financial decreases 0.3%, leads Insurance - life sector lower

18 October 2017 14:44 EDT

Manulife Financial Corporation (TSX:MFC) has decreased 0.3% to trade at CAD25.86 vs. the Insurance - life sector which weakened 2.5 points (or 0.2%) to 1,201.7. Representing a weighting of about 42.1% of the sector, the stock accounted for 69.6% of today's loss. Trading volume was 95% of average so far today.

Manulife Financial Corporation (T:MFC; TSE:MFC; N:MFC; CN:MFC)

ISIN: CA56501R1064

PermID: 4295862758

CIK: Manulife Financial Corporation

Source: www.BuySellSignals.com