CLOSING UPDATE: South32 down 2.4% in 2 days 12 June 2018

NEWS BITES - AUSTRALIA

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

South32, Australia's 3rd largest materials company by market capitalisation, extended its slide on Tuesday, shedding an additional 6.0c (or 1.6%) to trade at $A3.79. Trading volume was 1.1 times average at the end of the day. The shares have fallen 9.50c (or 2.4%) over the past two trading days vs. the All Ordinaries Index which has fallen 0.1% in the same period.

Technical indicators complementing today's significant downtrend:

+ The price dropped 2.3% in the last week and decreased 1.8% in the last month.

Note

South32 today is at a discount of 6.9% to the 12-month high of $A4.07 on 17 May, 2018. It is at a premium of 59.9% to the 12-month low of $A2.37 on 21 Jun, 2017.

The stock has outperformed 78% of the Australian market over the past 6 months.

Bullish Signals:

In the last three months the stock has hit a new 52-week high thrice.

The present value of AUD1,000 invested one year ago is $A1,581 [vs $A1,079 for the All Ordinaries Index].

Interest cover is less leveraged at 8.7 times.

Total Liabilities/EBITDA of 2.4 is comfortably below the Joseph Piotroski benchmark of <5.

Tobin's Q Ratio is 1. Compared with the rest of the market the stock is undervalued.

As per the Du Pont analysis, Return on Equity of 12.0% is better than sector average of 10.8%.

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

Undervaluation:

Price/Earnings of 12.4 [22.6]

Price/Sales of 1.9 [2.5]

Price to Book of 1.5 [2.9]

Dividend yield of 4.6% [3.5%]

Return on Equity 12.0% [10.8%]

Return on Assets 8.4% [5.5%]

Return on Capital Employed 14.1% [11.6%]

TODAY'S ALERTS

Afternoon Alert: South32 down 2.7% in 2 days

June 12, 2018 13:00:00 AEST

South32 Limited (ASX:S32) extended its slide on Tuesday, shedding an additional 7.0c (or 1.8%) to trade at $A3.78. The shares have fallen 10.50c (or 2.7%) over the past two trading days vs. the All Ordinaries Index which has risen 0.05% in the same period.

Morning Alert: South32 down 2.3% in 2 days

June 12, 2018 11:00:00 AEST

South32 Limited (ASX:S32) extended its slide on Tuesday, shedding an additional 5.50c (or 1.4%) to trade at $A3.79. The shares have fallen 9.0c (or 2.3%) over the past two trading days vs. the All Ordinaries Index which has fallen 0.1% in the same period.

RECENT ALERTS

CLOSING UPDATE: South32 increases 1.4% - outperforming 83% of stocks

June 07, 2018 16:00:00 AEST

South32, Australia's 3rd largest materials company by market capitalisation, has increased 5.50c (or 1.4%) today to trade at $A3.88 and has outperformed 83% of the market in the past week. A price rise combined with a high relative strength is a bullish signal. Compared with the All Ordinaries Index which rose 32.0 points (or 0.5%) in the day, this represented a relative price increase of 0.9%.

Morning Alert: South32 lifts 2.2%

June 07, 2018 11:00:00 AEST

South32 Limited (ASX:S32) has lifted 8.50c (or 2.2%) to trade at $A3.92.

South32 Limited (AU:S32; ASX:S32; AX:S32)

ISIN: AU000000S320

PermID: 1-21563364681

Source: www.BuySellSignals.com