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.
