Grupo Sanborns SAB d
GSANBOR B-1
End-of-day quote Mexican Stock Exchange - 10/18
21.85MXN
+0.83%

A technical turn-around configuration

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David Meurisse
Contributor / Partner

Strategy published on : 10/10/2017 | 15:30

long trade
Live

Entry price : 21MXN
Target : 28.7MXN
Stop-loss : 19.9MXN
Potential : 36.67%

The technical chart pattern of Grupo Sanborns SAB de CV shares shows signs of a reversal that argue in favor of a return to a positive outlook over the medium term.
Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● The share is getting closer to its long-term support in weekly data, at MXN 20.83, which offers good timing for buyers.

● Share prices are approaching a strong support area in daily data, which offers good timing for investors.

● Predictions on business development from analysts polled by Thomson-Reuters are tight. This results from either a good visibility into core activities or accurate earnings releases.

● As regards fundamentals, the enterprise value to sales ratio is at 0.9 for the current period. Therefore, the company is undervalued.

● Its low valuation, with P/E ratio at 11.79 and 11.12 for the ongoing fiscal year and 2018 respectively, makes the stock pretty attractive with regard to earnings multiples.

● The company is one of the best yield companies with high dividend expectations.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.


Weaknesses

● The group usually releases earnings worse than estimated.

Zonebourse.com 2017
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