These three ASX shares could be good sell options in the week ahead.
Find out why below.
Nufarm Limited (ASX: NUF)
Crop protection and specialist seed company Nufarm Limited shares have hit the skids in recent times dropping down 15% from $8.41 on July 20 to open at $7.27 today.
The slip comes after a substantial profit downgrade that saw investors stage a mass exodus after it was announced Australia and New Zealand’s EBIT would be between $5 million and $10 million – a far cry from estimates of $45 million out of JP Morgan.
You might think the sharp decline could make for compelling buying, especially after Nufarm recently acquired Arysta LifeScience Inc, but there’s little doubt Nufarm is currently facing a challenging environment and coupled with demand issues things could go further south when the company reports its full-year results in late September.
If you’re still turning a profit from Nufarm now might be the time to sell some down and cash in and if you see it as ripe for the picking, you might like to wait a bit for some lower lows to time your in.
Speedcast International Ltd (ASX: SDA)
Satellite-based communication network provider Speedcast International shares have been on a healthy incline in the last 12 months – rising 76% from $3.45 at this time last year to open today at $6.10.
But how much longer can the good times last?
All in all, I think Speedcast has a bright future with its core business sector only set to expand and its Harris CapRock transaction positioning the company as the largest remote communications provider in the world late last year.
But it’s trading on a PE ratio in excess of 200, and one little misstep could result in a significant re-rating downward, so for the time being, I’d think about locking in some profit – even if that means not selling off your entire holding.
When things seem a little too good to be true in terms of pricing and you’ve made a good buck, there’s nothing wrong with taking some for the kitty, even if you buy back in during a future slump.
Pilbara Minerals Ltd (ASX: PLS)
Lithium has been all the rage for quite some time, with the sector tipped to continue to rocket upwards for some time yet.
Emerging lithium producer Pilbara Minerals Ltd has ridden the wave well, so far, with its shares up 138% in the last 12 months.
But things have slowed in the sector over the last month after Goldman Sachs suggested the sector was “overdone” going as far as to say the demand for the battery making ingredient was “unfounded”.
While plenty of experts still see big things to come for the likes of Pilbara, and peers Galaxy Resources Limited (ASX: GXY) and Orocobre Limited (ASX: ORE) if you’ve made some good gains from Pilbara lately taking some profit now can’t hurt, even if you keep some skin in the game.
Where to invest $1,000 right now
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Motley Fool contributor Carin Pickworth 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.
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