On Wednesday a number of shares defied the market selloff and managed to push higher. Some even went so far as to reach new 52-week highs.
Three that accomplished this feat are listed below. Is it too late to invest in their shares?
The Cleanaway Waste Management Ltd (ASX: CWY) share price may have ended in the red on Wednesday, but at one stage it touched on a multi-year high of $1.75. Investors have been fighting to get hold of the company’s shares since it acquired the Tox Free Solutions business this year. While I think this acquisition is an astute one and will diversify Cleanaway Waste Management’s operations and provide it with meaningful growth over the coming years, at 26x estimated FY 2019 earnings I think its shares are fully valued now. I would suggest investors wait in hope of a pullback in its share price.
The Infomedia Limited (ASX: IFM) share price closed the day at a two-and-a-half-year high of $1.00 on Wednesday. Investors have been buying the shares of the technology services developer and supplier of electronic parts catalogues and service systems to the global automotive industry despite a weak first-half result which saw net profit after tax fall 18% on the prior corresponding period to $5.7 million. However, with management confident that the Nissan global EPC contract delivery project will lead to a strong second-half and year-on-year profit growth, investors appear to have been happy to overlook the weak first-half. In addition to this, management believes the project will lead to notable growth in FY 2019. While I do like the company and its software and believe the Nissan project could be a game-changer, I intend to wait to see if management delivers on its promise in the second-half before investing.
The Woolworths Group Ltd (ASX: WOW) share price climbed to a 52-week high of $31.36 on Wednesday. Last week’s deal with Caltex Limited (ASX: CTX) appears to have been the catalyst for this latest gain. While I’ll be the first to admit that things look a lot more rosy for Woolworths today than they did 12 months ago, I feel its shares are overvalued now. I’m not alone in thinking this way. A note out of Morgan Stanley last week declared Woolworths as a sell with a lowly $23.00 price target. While I’m not as bearish as the broker is, I wouldn’t be a buyer of its shares unless they came down 10% to 12% from here.
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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 Scott Phillips.