Today we have a look at the market after the close and some stocks that experienced significant announcements or moves.
Neuren Pharmaceuticals (ASX:NEU) $19.78 down 14.2%
https://www.neurenpharma.com/
Was a stock that did great for the model portfolio until it’s last quarterly report where it seemed some growth rates were a bit slower than expected and cash flows were meagre. Today they are down due to a short-report on their distribution partner Acadia (NDQ:ACAD). The short report brings into question if the drug Daybue, that Acadia is distributing for Neuren is as good as we’ve all been told. Time will tell but the risks have increased somewhat for Neuren Pharmaceuticals (ASX:NEU) for the time being.
Model ranking n/a down from 1 after recent quarterly report.
Pro Medicus (ASX:PME) $87.24 down 7.2%
https://www.promed.com.au/
The price hit $111.88 on Monday. The stock had had an amazing run into results. From what I can tell, the numbers were a few percent off expectations when the price was suggesting the market was expecting a beat. When I say the result was a few percent down on what the market was hoping, it was still a fantastic result and all the elements that make it a great company remain in tact. Having said that, investors would be nervous because this company still has a crazy valuation and sentiment has played a large part in it achieving that.
My valuation model shows how ahead of itself, Pro Medicus (ASX:PME) had become. As we can see this also happened back in 2021. It’s falling back to earth and if it could somehow find its way back to $60, history suggests that would be a great entry point.
Blue line – price high for the year | Red line price low for the year | Light green zone – fair value range | Dark green zone – deep value range | White zone – overvalued range
Model Ranking 32 down from 20 after yesterday’s results
Data#3 (ASX:DTL) $7.69 down 9.53%
https://www.data3.com/
Similar to Pro Medicus (ASX:PME). Price peaked at $10.01 on Tuesday. For some reason the stock rallied hard into results. It had me scratching my head. The results seemed roughly what the market expected maybe a percent or two shy and the stock has been smashed back down to where it was in November 2023. Steady company but certainly not worth the valuation it had when priced at $10.00.
Model Ranking 104 down from 85 after yesterday’s results Data#3 (ASX:DTL) has had me scratching my head for a while. The market has clearly been rerating it for a while but by my calculations things got euphoric at $10.
Just for an example, this is my valuation model for the stock Codan (ASX:CDA). As you can see it was extremely hit back in 2021. After that peak it had an almighty fall back to earth. Not saying that will happen with ASX:DTL or especially ASX:PME – but it can happen!
Stocks that reported or had significant events today
RPM Global (ASX:RUL)
https://rpmglobal.com/
Results came out after the close last night. Stock plunged at the open and recovered through the day like so many we see during reporting time. There was no issues in the announcement that I could see with them reiterating guidance. Will be interesting to see if it can continue to recover on Monday.
Model Ranking 46 down from 35 after yesterday’s results
Inghams Group (ASX:ING)
https://inghams.com.au/
Another solid set of results but a cautious outlook was enough to see Inghams Group (ASX:ING) fold 12.5% today.
Model Ranking 137 down from 96 after today’s results. Could fall further when brokers revise their forward projections.
The market hasn’t been too kind to stocks reporting earnings during the past couple of days. This is in contrast to some great daily gains last week. Let’s hope the mood improves next week.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.