Cementir, Italy’s 5th largest construction, engineering & materials company by market capitalisation, has dropped below its trend. The 200-day moving average price (MAP) was Euro6.48. In the past 200 days this ratio has been under 0.84 133 times suggesting further downside. The stock is trading below both its MAPs and the 50-day MAP of Euro5.91 is lower than the 200-day MAP of Euro6.48, a bearish indicator. The 200-day MAP has decreased to Euro6.48. A decrease is another bearish indicator. The share price decreased 9.0 Eurocents (or 1.6 per cent) to Euro5.46. Compared with the MIBTEL Index which fell 351.0 points (or 1.4 per cent) on the day, this represented a relative price change of -0.2 per cent.
Price trend: The price dipped 0.7 per cent in the last week and plummeted 8.2 per cent in the last month. In the last three months the number of falls outnumbered rises 35:27 or 1.3:1.
Relativities: Compared with the MIBTEL Index which fell 0.3 per cent for the week and 3.5 per cent for the month, this represented a relative price decrease of 2.2 per cent for the week and 7.6 per cent for the month. Since open its percentile rank in the Italian market was 37. In the Italian market of 395 stocks, the stock has a six-month relative strength of 55 which means it has outperformed 55 per cent of the market.
Spotting the Top or Distribution: The price was down on higher volume today. There have been five such events of Distribution in the last three weeks. Combined with the fact that today’s close of Euro5.46 was lower than today’s mid-bounce price [average of price high and price low] of 5.5 is a bearish signal.
Breakdown: In the last three months the stock has hit a new 52-week low once.
Volatility: The stock traded between an intraday high of Euro5.55 and a two-day low of Euro5.43.
Moving Average Price (MAP): The price to 200-day MAP ratio is 0.84, a bearish indicator.
Volume and Turnover Period: There were 80,854 shares worth Euro441,463 (US$684,863) traded. The volume was 0.3 times average trading of 304,636 shares. The turnover rate in the 12 months to date was 47.9 per cent (or a turnover period of two years 33 days). This average length of ownership of the stock at 1.6 times the average holding period of one year three months for stocks in the All STARS Index suggests a larger number of core investors, making a long-term investment safer.
Annual Report for the year ended December 31, 2006 (year-on-year comparisons with previous corresponding period)-
Favourable Changes: net profit growth 46.9 per cent to Euro168,908 (US$222,834); EPS recovery to Euro45,807.0 (US$60,431.4); interest cover up 9.9 per cent to 1.3; total liabilities to operating cash flow down 20.8 per cent to 56.5: this compares unfavourably with Joseph Piotroski benchmark of four; debt to equity down 4.5 per cent to 4.3; NTA per share recovery to Euro13.7 (US$18.0).
Unfavourable Changes: total liabilities to total assets up 0.9 per cent to 1.4; current ratio down 29.7 per cent to 0.02.