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Morning Alert: Merck and Co. in 3rd consecutive fall, nears two-month low 17 October 2017 11:14 EDT

NEWS BITES - NORTH AMERICA

Merck & Co., Inc. (NYSE:MRK) slipped further on Tuesday, sliding an additional 28.0c (or 0.4%) to trade at $US63.06. The stock decreased 0.69% on Friday and 0.08% on Monday bringing its 3-day fall to 1.2%. It is now approaching its 46-day low of $US62.92.

SECTION 1: The past week

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

1.1 At a glance

Weekly: Merck and Co. falls for a fourth consecutive week, a four-week fall of 4.0% October 16, 2017 16:00 EDT

Merck & Co., Inc. (NYSE:MRK) has fallen 99.0c (or 1.5%) on high volume to close at $US63.34. The stock fell for a fourth consecutive week on Monday bringing its a four-week fall to $US2.65 or 4.0%. Compared with the S&P 500 Index which rose 53.8 points (or 2.1%) in the four weeks, this represented a relative price change of -6.2%. The volume was 0.8 times average trading per week of 45.3 million shares. In the past four weeks the market cap has declined $US7.2 billion.

1.2 5-day Recap

Merck and Co. underperformed the S&P 500 index in 3 out of 5 days.

DayHeadlineClose price [USD]Price change %Relative change %Comment
MondayMerck and Co. drops to two-month low63.34-0.1-0.3
FridayMerck and Co. falls in weak trading with rising open interest63.39-0.7-0.8
WednesdayMerck and Co. underperforms 91% of the market63.78-1.1-1.3Steepest Fall

Note

DayHeadlineClose price [USD]Price change %Relative change %Comment
ThursdayMerck and Co. increases63.830.10.2
TuesdayMerck and Co. increases64.460.20.1Top Rise

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

Parity:

Price/Sales of 4.3 [4.1]

Undervaluation:

Price/Earnings of 24.6 [28.1]

Dividend yield of 3% [2.7%]

Overvaluation:

Return on Equity 9.9% [14.1%]

Return on Assets 4.1% [5.7%]

Return on Capital Employed 6% [8.3%]

SECTION 2: Ranking

DescriptionValueRank In Market
MCap $US billion172In Top 2%
Today's Volatility %0.5In Top Quartile
52-week Range (in $US)58.3-66.8
1-month Range (in $US)62.9-66.4
RSI27.6Bullish
Williams %R-92.9Bullish

SECTION 3: Earnings

FY2016 Annual Report: Merck and Co. keeps sliding: EPS down 65% in 2 years

Merck and Co. (NYSE:MRK), announced EPS of $US1.41 for the year-ended 31 December 2016, down 9.6% from $US1.56 in the previous year. In the last two years EPS has declined by 65.4%.

Major changes compared with previous year:

Favourable Changes:

- Cost of Goods Sold to Sales down from 37.8% to 34.9%

- Sales and marketing expenses to Sales down from 26.1% to 24.5%

- Current ratio up 14.8% from 1.6 to 1.8

- Working capital to total assets up from 10.4% to 14.1%

- Retained earnings to total assets up from 44.6% to 46.3%

- Total current assets to Total Assets up from 29.3% to 32.1%

- Fixed Assets to Total Assets up from 12.3% to 12.6%

- Net tangible assets per share up 8.5% from $US1.53 to $US1.66

Unfavourable Changes:

- Net profit down 11.8% from $US4.4b to $US3.9b

- EPS down 9.6% from $US1.56 to $US1.41

- EBIT Margin down from 13.7% to 11.7%

- EBIT to total assets down from 5.3% to 4.9%

- Profit before tax to Sales down from 13.7% to 11.7%

- Total non-current assets to Total Assets down from 57.9% to 55.9%

- Long-term investments to Total Assets down from 12.8% to 12%

- Total Liabilities to EBITDA of 11.8 compares unfavourably with the Joseph Piotroski benchmark of less than 5. This ratio has deteriorated by 12.1% from the previous year's ratio of 10.5.

- Total Liabilities to Operating Cash Flow of 5.3 compares unfavourably with the Joseph Piotroski benchmark of less than 4. This ratio has deteriorated by 17% from the previous year's ratio of 4.5.

Note:

- Sales revenue steady at $US39.8b

- Total revenue to total assets steady at 0.4

- Tax expenses to Sales down from 2.4% to 1.8%

- Debt to Equity steady at 0.6

- Total liabilities to Total assets steady at 0.6

- Intangibles to Total Assets down from 39.7% to 37.2%

SECTION 4: Recent News of Merck and Co.

October 12: Merck Makes $3 Million Charitable Donation to Support Swim Across America

Merck's Contribution Will Help Swim Across America Raise $100 Million for Cancer Research Over the Next Decade Merck Employees to Conduct Their Own "Swim Across America" Starting in 2018 KENILWORTH, N.J.---- To help support innovation in cancer research, Merck (NYSE:MRK), known as MSD outside the United States and Canada, today announced that the company will make a $3 million charitable contribution to Swim Across America.

October 12: Merck Joins with the American Liver Foundation to Educate U.S. Veterans on Chronic Hepatitis C Virus (HCV) Infection

Events Across the Country Will Raise Awareness of Veterans' Increased Risk for Chronic HCV Infection KENILWORTH, N.J.---- Merck (NYSE:MRK), known as MSD outside of the United States and Canada, today announced a collaboration with the American Liver Foundation to raise awareness among U.S. veterans about their increased risk for chronic hepatitis C virus (HCV) infection.

October 11: Merck Provides Update on Anacetrapib Development Program

KENILWORTH, N.J.---- Merck (NYSE:MRK), known as MSD outside the U.S. and Canada, today announced that the company will not submit applications for regulatory approval for anacetrapib, Merck's investigational cholesteryl ester transfer protein (CETP) inhibitor. The decision follows a thorough review of the clinical profile of anacetrapib, including discussions with external experts.

October 10: Six-year Efficacy Data for GARDASIL 9 Presented at EUROGIN 2017 Congress

Merck's 20-year commitment to HPV research highlighted in oral session KENILWORTH, N.J.---- Merck (NYSE:MRK), known as MSD outside of the United States and Canada, announced results from final analyses of the pivotal Phase III efficacy, immunogenicity, and safety clinical trial for GARDASIL 9 (Human Papillomavirus 9-valent Vaccine, Recombinant).

October 10: Merck and Co. (MRK) issued new U.S. patent [9,783,531]

Merck and Co. (MRK) has been issued a new U.S. patent titled "Thiazole-substituted aminoheteroaryls as spleen tyrosine kinase inhibitors" by the US Patent and Trademark Office. The patent number is 9,783,531 and was issued on October 10, 2017.

ABSTRACT

The invention provides certain thiazole-substituted aminoheteroaryl compounds of the Formula (I) or pharmaceutically acceptable salts thereof, wherein R.sup.1, R.sup.3, R.sup.5, R.sup.6, A, Cy and the subscripts r, s, and t are as defined herein.

Merck & Co., Inc. (N:MRK)

ISIN: US58933Y1055

PermID: 4295904886

CIK: 310158

CUSIP: 58933Y105

Source: www.BuySellSignals.com