Canadian stock alert

CANA

CLOSING UPDATE: Magna International up 3.2% in 2 days 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).

Magna International, Canada's largest auto company by market capitalisation, extended its gains on Wednesday, rising an additional CAD1.65 (or 2.5%) to trade at CAD68.59. Trading volume was 1.3 times average at the end of the day. The shares have risen CAD2.11 (or 3.2%) over the past two trading days vs. the S&P/TSX 60 Index which has fallen 0.04% in the same period.

Technical indicators complementing today's significant uptrend:

+ The positive 1.54 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The stock has outperformed 90% of the Canadian market over the past 6 months.

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

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

Undervaluation:

+ Price/Earnings/Growth of 0.62 [5.4]

+ Dividend yield of 2.1% [0.6%]

+ Return on Assets 9.2% [4.8%]

+ Return on Capital Employed 20.7% [9.8%]

+ Year-on-Year Earnings Growth of 5.7% [1.5%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 32.6 times.

+ Total Liabilities/EBITDA of 3.1 is comfortably below the Joseph Piotroski benchmark of <5.

+ Tobin's Q Ratio is 0.9. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 5.8% in the last 3 years. This is better than the sector average of 5% and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity is high at 20.8%.

Note

Overbought/Bearish:

The 1.5% discount to 12-month high of CAD69.66 against the 42.2% premium to 12-month low of CAD48.23 suggests the climb might be peaking.

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

Overvaluation:

Price/Earnings of 9.9 [7.9]

Price/Sales of 0.5 [0.4]

Price to Book of 2.8 [2.0]

TODAY'S ALERTS

Afternoon Alert: Magna International up 3.1% in 2 days

18 October 2017 14:44 EDT

Magna International Inc. (TSX:MG) extended its gains on Wednesday, rising an additional CAD1.61 (or 2.4%) to trade at CAD68.55. Trading volume was 1.3 times average so far today. The shares have risen CAD2.07 (or 3.1%) over the past two trading days vs. the S&P/TSX 60 Index which has risen 0.1% in the same period.

Afternoon Alert: Magna International up 4.0% in 2 days

18 October 2017 12:16 EDT

Magna International Inc. (TSX:MG) extended its gains on Wednesday, rising an additional CAD2.21 (or 3.3%) to trade at CAD69.15. Trading volume was 1.4 times average so far today. The shares have risen CAD2.67 (or 4.0%) over the past two trading days vs. the S&P/TSX 60 Index which has risen 0.2% in the same period.

RECENT ALERTS

CLOSING UPDATE: Magna International increases 0.7% - outperforming 88% of stocks

17 October 2017 18:16 EDT

Magna International, Canada's largest auto company by market capitalisation, has increased 46.0c (or 0.7%) today to trade at CAD66.94 and has outperformed 88% of the market in the past six months. A price rise combined with a high relative strength is a bullish signal. Compared with the S&P/TSX 60 Index which rose 1.7 points (or 0.2%) in the day, this represented a relative price increase of 0.5%.

Afternoon Alert: Magna International increases 1.4%, leads Auto sector higher

17 October 2017 12:16 EDT

Magna International Inc. (TSX:MG) has increased 1.4% to trade at CAD67.38 vs. the Auto sector which strengthened 3.2 points (or 0.2%) to 1,448.9. Representing a weighting of about 20.5% of the sector, the stock accounted for the gain. Trading volume was 60% of average so far today.

Magna International Inc. (T:MG; TSE:MG; N:MG; CN:MG)

ISIN: CA5592224011

PermID: 4295861309

CIK: Magna International Inc.

Source: www.BuySellSignals.com