Although it is off its lows, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is down a disappointing 0.1% to 5,899 points in afternoon trade.
Four shares which haven’t let that hold them back are listed below. Here’s why they surged higher:
The Nick Scali Limited (ASX: NCK) share price is up 5% to $6.53 following the release of a trading update at today’s AGM. According to the update, management expects its cost reduction and margin improvement initiatives to offset weaker sales growth and lead to first-half profit growth of between 10% and 15%. While I do like Nick Scali, cost reductions can only go so far. So I’m going to hold off an investment until sales growth starts to improve.
The RedFlow Ltd (ASX: RFX) share price has surged higher by 13.5% to 9.2 cents after the battery maker advised that it has started to install equipment at its new factory in Thailand. Redflow expects to commence operations at the factory by the end of the year. Investors appear to believe that this will reduce manufacturing costs and improve profitability.
The Shaver Shop Group Ltd (ASX: SSG) share price has climbed 8% to 46 cents after the specialty retailer provided a trading update and revealed plans to buy up to 10% of its outstanding shares on-market. The embattled retailer appears to be taking advantage of its sharp share price decline to buy back shares at a good price.
The Zenitas Healthcare Ltd (ASX: ZNT) share price is up 6% to $1.26 following the release of its latest quarterly update. Thanks to a positive start to the year, management reaffirmed its full-year EBITDA guidance of between $13 million and $13.5 million. This will be significantly higher than FY 2017’s EBITDA of $7 million and is thanks largely to recent acquisitions. I think Zenitas is a great long-term buy and hold investment option.
Missed out on these gains? Don't worry because I think these hot stocks could be next in line to climb higher.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.