Hot or Not? ASX Stocks on 52-Week Highs and Lows
Regardless of what the market does there are always a number of stocks that are trading at 52-week highs and 52-week lows.
The ASX experienced a roller coaster ride so far this year as the market tumbled during the first two months before staging a recovery, which was only temporarily disrupted by the Brexit vote. However, regardless of what the market does there are always a number of stocks that are trading at 52-week highs and 52-week lows. Every day Wise-owl publish our ‘hot’ and ‘not’ stocks of the day. Find below a summary of some of the hottest stocks on the ASX, as well as those that investors should avoid.
Hot Stocks on the ASX
Wisetech Global (ASX:WTC)
Wise-owl rated the Wisetech Global IPO with 3.5 points in our weekly Float Watch series, making it one of the best IPOs so far this year. WiseTech offers profitable exposure to the demand for software technology in the global logistics industry. We are attracted to the company’s growth trajectory, free cash flow and management track record.
South32 Ltd (ASX:S32)
South32 is gaining momentum after hitting a low in February. The company has a strong balance sheet with a net cash position of US$18m. South32 reaffirmed that they are on track to achieve FY16 production guidance and to reduce costs by $300m. While a number of commodity prices have recovered year-to-date, investors have re-rated the stock.
Fortescue Metals (ASX:FMG)
The share price of Fortescue Metals has doubled since the beginning of the year. In January FMG was valued at the lowest level since the GFC, but investors have turned bullish as iron ore prices have climbed above $55 per tonne. The commodity has recovered faster than most analysts had predicted and remained steady in the past few weeks.
SG Fleet Group Ltd (ASX:SGF)
SG Fleet Group Ltd (SGF) has gained ~65% during the past 12 months as the market remains upbeat about the future of the company. Revenue rose 9.2% during the first half of the year while profit was little changed at $19.7 million. The company has been appointed as a provider of fleet management services to the NSW government.
Audio Pixels Holdings (AKP)
Audio Pixels Holdings (AKP) develops and designs digital loudspeakers and recently announced that its test surpassed one trillion cycles without any failures. The company believes that its technology will enable production of speaker products which are superior to existing technology. Potential customers include consumer electronics manufacturers.
Saracen Mineral (SAR)
Saracen Mineral has been the best performing ASX 200 stock during the first half of CY 2016. Higher gold prices support the company’s operating environment, and Saracen has increased its production guidance while cash on hand is ‘above expectations’. The share price of SAR has appreciated over 180% year to date and more than 280% during the past 12 months.
Helloworld’s share price has seen a re-rating during the past few months with HLO gaining nearly 50% during the past 12 months. The Company announced new commercial agreements with Qantas and Jetstar and recently upgraded its forecast TTV (Total Transaction Value) to between $5.3bn and $5.4bn.
Not Stocks on the ASX
Pepper Group Ltd (ASX:PEP)
The share price of Pepper Group Ltd (PEP) has declined 36% year-to-date. Net profit declined over 90% on year, despite a rise in revenue. Pepper is focused on residential mortgage and consumer lender and loan services. Pepper is subject to extensive regulation across all jurisdictions it operates in.
Platinum Asset Management Limited (ASX:PTM)
Wise-owl recommended to sell Platinum Asset Management Limited (PTM) at $6.21 on 8 April 2016. PTM has lost nearly 30% year-to-date, significantly underperforming the broader market. While the company has a strong track record of value creation, we believe there are better opportunities elsewhere in the medium-term.
Future Fibre Technologies Ltd (ASX:FFT)
Future Fibre Technologies Ltd (FFT) is trading at the lowest price since listing on the ASX in May 2015. The company’s historical cash flow generation is mixed and the listing price incorporated a degree of further growth. The stock price has declined ~60% so far this year and trades 35% below the IPO price.
Platinum Asia Investments Ltd (ASX:PAI)
Platinum Asia Investments Ltd (PAI) has lost ~10% year-to-date, significantly underperforming the general market. As at 28 June Net Tangible Assets (‘NTA’) were $0.905, compared to $0.96 at the beginning of the year. PAI offers diversified exposure to emerging countries in Asia.
The Magellan Global Equities Fund (ASX:MGE)
The Magellan Global Equities Fund has lost ~7% in value since the beginning of the year, significantly underperforming the broader index. During the past six months the actual fund lost 1.2% compared to a flat market. Over 50% of the revenue are generated from investments in the US, 23% in Rest of World, 13% in Emerging Markets and 9% in Europe.
Estia Health Ltd (ASX:EHE)
The Estia Health share price plunged after newspapers reported that the federal government aims to increase its scrutiny of operators' claims for grants known as Aged Care Funding Instruments (ACFI) weighed on the stock. A number of reputable fund managers recently revealed that they are shorting the stock.
Thorn Group (ASX:TGA)
Thorn Group continues to make new lows as investors remain bearish on the micro-financing industry. TGA was removed from the ASX 200 index following the significant decline in value. During the past FY net profit shrunk 34.4% despite a 3.5% rise in revenue. Net profit was impacted by one-off charges associated with a strategic review as well as goodwill write-downs.
Author: Simon Herrmann
Jul 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.