Canadian stock alert


Afternoon Alert: Fairfax Financial keeps sliding: down 3.3% in 3 days 20 June 2018 14:43 EDT


Fairfax Financial Holdings Limited (TSX:FFH) extended its slide on Wednesday, shedding an additional CAD9.74 (or 1.3%) to trade at CAD749.54. Trading volume was 1.2 times average so far today. The shares have fallen CAD25.65 (or 3.3%) over the past three trading days vs. the S&P/TSX 60 Index which has risen 0.7% in the same period.

Current indications of bearish signals that support the trend in the unusual trading:

+ The price decreased 0.4% in the last week.

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


+ Price to Book of 2 [0.4]

+ Dividend yield of 1.7% [6.7%]

+ Price/Sales of 0.7 [0.2]

+ Price/Earnings of 8.4 [3.8]

Other Bearish Signals include:

+ Net profit margin has averaged 4.1% in the last 3 years. This suggests the company is less profitable with a low margin of safety.


Bullish Signals:

The positive 13.17 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

The 5.0% discount to 12-month high of CAD788.88 against the 39.4% premium to 12-month low of CAD537.75 suggests the stock continues to push for new highs.

The stock has outperformed 84% of the Canadian market over the past 6 months.

Interest cover is less leveraged at 7.1 times.

Tobin's Q Ratio is 0.2. Compared with the rest of the market the stock is undervalued.

Revenue growth rate has shown signs of recovery in recent years.

Fairfax Financial Holdings Limited (T:FFH; TSE:FFH; N:FFH; CN:FFH)

ISIN: CA3039011026

PermID: 4295862177

CIK: Fairfax Financial Holdings Limited