Stock of the week: Company acquisition leads one ASX stock to new highs
Finfeed’s stock of the week is benefiting greatly after delivering some extremely promising news in relation to first-quarter trading and an acquisition.
The group is benefiting from activity in the electrical, power and infrastructure industry segments, but it also has exposure to other areas which provides earnings diversification and assists in insulating it from industry specific cyclical trends.
This isn’t a stock that tends to peak and dip as newsflow fluctuates, as it has an impressive record of generating strong revenues and earnings.
Of course as with any stock, continued success is not guaranteed so investors should seek professional financial advice if considering this stock for their portfolio.
A quality fiscal 2018 result announced on August 13 triggered a share price increase of circa 15%. The company started this week trading at 28 cents and went on to hit a high of 36 cents on Tuesday, representing a gain of nearly 30%. Demonstrating its sustained strong performance over the last 12 months is the fact that its shares are now up approximately 80% on a year-on-year basis. It is also worth noting this week’s comparatively high trading volumes in the following chart which shows its share price performance since listing on the ASX in 2004.
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