ASX Stocks on 52-Week Highs and Lows: Hot or Not?
Even though the ASX is going essentially nowehere, there are numerous stocks trading at 52-week highs and 52-weeek lows.
Even though the ASX is going essentially nowehere, there are numerous stocks trading at 52-week highs and 52-weeek lows. Every day Wise-owl features 'hot' and 'not' stocks on the ASX.
Hot Stocks on the ASX
Praemium Limited (ASX:PPS)
Praemium Limited reached a fresh high and is now trading at the highest level since 2008. During FY16 revenue increased 28 per cent to $28.4 million while underlying EBITDA jumped 72 per cent. Funds under administration (FUA) continue to grow as the company approaches profitability. Earlier this year Premium signed JBWere.
Technology One Ltd (ASX:TNE)
Wise-owl pick Technology One Ltd (TNE) continues to edge higher year after year as management expands the business. Wise-owl’s last buy recommendations was issued at $1.95 in July 2013 and the stock was last traded at over $6, a 3-fold increase. The company has a strong track record of delivering growth to its shareholders, whilst a strong balance sheet allows for special dividends.
Seven Group Holdings (ASX:SVW)
Shares of Seven Group Holdings have gained over 60 per cent since the beginning of the year and nearly 90 per cent over the past 12 months. Seven Group announced a share buyback of up 16.6 million shares after a strong FY16 which has seen the company swing back to profit. Seven Group is a diversified investment group with exposure to industrial services, media and energy.
Money3 Corporation (ASX:MNY)
After a weak 2015, the market turned back to Money3 Corporation again sending shares over 100 per cent higher since January. During FY16 the company posted a 40% increase in revenue to $96.7m, while NPAT increased 44.4 per cent to $20.1m. The company provided a guidance for FY17 expecting NPAT of $26m, significantly above last year.
Cooper Energy (ASX:COE)
Cooper Energy is currently on Wise-owl’s watchlist as we are attracted to the scale of the company’s undeveloped resources. There are a number of milestones ahead such as the final funding decision for the for the 50% owned Sole Gas joint venture project. Cooper Energy offers speculative exposure to domestic east coast gas demand. The stock has doubled since the beginning of the year.
Not Stocks on the ASX
Tower Limited (ASX:TWR)
Shares of embattled insurance provider Tower Limited have dived over 50 per cent this year. Tower recently announced that the company has to increase its contingent liabilities for the Canterbury earthquake, which is expected to result in a $16.2 million impact on Tower's profit after tax. Management also announced that they will review the dividend policy at year end.
The value of Urbanise has declined 74 per cent over th epast 12 months and UBN has yet to find technical support as investors continue to sell down the stock. Revenue declined 10 per cent during FY16 and the company posted a $9.2 million loss. Management blames supply chain issues as well as an increase in investments to create a foundation for growth.
XPD Soccer gear Group Limited (ASX:XPD)
XPD’s half yearly results have disappointed investors as net profit decreased 35 per cent to just $2.5 million, down from $7.2 million in FY15. The decline was due to ‘refurbishment costs’ in relation to retail outlets. Prior to listing on the ASX Wise-owl flagged that market and regulatory risks associated with its China operations should not be overlooked. XPD lost 40% of its value year-to-date.
OFX Group (ASX:OFX)
Shares of OFX Group, formerly OzForex, continue to fall and are now trading at an all-time low. Earlier this year, OFX tumbled after announcing that takeover discussions with The Western Union Company have been terminated. Despite announcing overall growth during Q1 FY17, investors continue to sell down the stock as confidence fades.
Newzulu Ltd (ASX:NWZ)
Newzulu Limited announced that it will not achieve cash flow positive operations as previously indicated to the market and announced that further capital raisings will be needed in FY17 to fund operations. NWZ has lost nearly 90 per cent of its value in 2016.
Author: Simon Herrmann
Oct 13, 2016
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.