Companies such as Dick Smith Holdings Ltd (ASX: DSH) and Slater & Gordon Limited (ASX: SGH) have dominated the headlines recently, after shares in both lost more than 50% of their value in the past week of trading.
However, a number of companies are quietly making waves at the opposite end of town, rising further as performance and investor interest builds.
Here's my take on whether there's any value to be found in these big gainers:
Bellamy's Australia Ltd (ASX: BAL) – last traded at $12.22, up 659% in the past year
It seems like everybody wants a piece of Bellamy's, which has absolutely skyrocketed this year and now trades on a Price to Earnings (P/E) ratio of 125 – among the highest I've ever seen in a profitable company. The latest five-year manufacturing agreement between Bellamy's and FONTERRA ORD UNIT (ASX: FSF) will add capacity to Bellamy's and was responded to strongly by the market.
However, at such a high price and with competition in the space heating up, including from Blackmores Limited (ASX: BKL) which already has a brand presence in Asia, it's difficult to see value in Bellamy's today.
Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) – last traded at $7.86, up 54% in the past year
Oxygen mask manufacturer Fisher & Paykel has absolutely crushed the market in recent years. I even remember tipping it as a buy at $4, and again at $5 back in 2014. Unfortunately, I didn't follow my own advice.
Now however, shares look to be well and truly fully priced, trading on a Price to Earnings (P/E) ratio of 40. The stock is expected to continue posting respectable growth both in revenue and through supply chain savings, although at such a high price there are better alternatives.
I wouldn't be surprised to see shares take a dip in the next twelve months.
Rent.com.au Ltd (ASX: RNT) – last traded at $0.55, up 313% in the past year
Back in June, I covered the launch of rent.com.au, which was conducted through a back-door takeover of Select Exploration Ltd. Shares are actually up 275% since RNT launched at $0.20.
Since then, investors have piled into the stock as RNT delivers substantial growth in its nameplate website, which hit its key '500,000 unique views per month' target some eight months ahead of schedule. A partnership with Certegy, owned by FlexiGroup Limited (ASX: FXL) has also launched the innovative 'RentBond' product, which pays the bond instantly for eligible renters, reducing rental application delays and allowing the tenant to repay the bond over 3-6 months.
While much depends on how the elephant in the room, REA Group Limited (ASX: REA) reacts to rent.com.au, the initial success is promising and I expect RNT shares to head higher.
