Once again the S&P / ASX 200 (Index: ^AXJO) (ASX: XJO) has drifted lower today, with weakness amongst the big mining and energy stocks again a contributory factor.
However, there are several stocks bucking the trend to charge higher thanks to specific company news or generally improved investor sentiment. Let's take a look at them and consider if there may be more price rises on the cards over the months ahead.
Liquefied Natural Gas Limited (ASX: LNG) shares have climbed 17 cents or nearly 5% to $3.61 today after the company released an investor presentation given at its AGM. More than half of the company is now owned by North American investors who have bought into its potential to make big bucks from operating liquefied natural gas processing facilities in North America.
The fact that the top 20 investors now account for 57.8% of the share register may explain why the share price is volatile as speculators trade the outstanding stock on a daily basis. While the group's projects are so far out from completion it carries a lot of execution and operational risk and the share price is likely to remain volatile for a long time yet.
Pacific Brands Limited (ASX: PBG) has jumped 2.5 cents or 5% to 52 cents after announcing it has agreed to sell its loss-making Brand Collective business in the footwear, apparel and sports categories.
Gross proceeds of approximately $39 million will be used to reduce the group's debt pile as it continues to execute its turnaround strategy. Sensibly the group is choosing to simplify and refocus on its market-leading brands like Bonds and Sheridan in an attempt to return itself to consistent profit making. At 52 cents the shares look an opportunity, especially given news of the intended divestments.
Treasury Wine Estates Ltd (ASX: TWE) is up 12 cents or 2.66% to $4.64 most likely on the news of a Free Trade Agreement agreed by China and Australia. The agreement will see tariffs of 14-20% on wine exports to China removed over the next four years.
This may sound promising for a company that exports a lot of wine to China, but Treasury still faces an uphill battle selling the wine due to the Chinese consumers' love of French brands. In China price is religiously equated to quality and selling your wine a bit cheaper is no guarantee of success. Treasury will need to deliver results to justify today's speculative buying.
Affinity Education Group Ltd (ASX: AFJ) is up 5 cents or 4.17% to $1.25 as investors warm to its potential to grow its child care centre business. Affinity has a wildly successful role model in G8 Education Ltd (ASX: GEM) and believes its own acquisitive roll-up style business plan can lead to similar success.
The company should soon have a portfolio of 140 child care centres and is operating in a highly fragmented child care centre market which means the acquisitive growth strategy has plenty of room to run yet. However, considerable risks around execution and balance sheet management mean any investment remains far from child's play.
