These four stocks have hit recent 52-week highs, and more gains could be in store for shareholders if the trend continues.
While some investors may baulk at buying companies hitting highs, fearing prices may have been pushed too high, it pays to remember that as companies grow they should consistently reach new levels.
Here's why these four have hit recent highs…
Capilano Honey Limited (CZZ)
One wonders whether Capilano Honey's ticker code should be BZZ, given the company owns and produces and sells Australia's number one brand of honey, and exports to more than 33 countries worldwide. Last week, media mogul Kerry Stokes emerged with a 12.5% holding in Capilano, a great time to invest in honey as health-conscious consumers increasingly favour natural products.
Burson Group Ltd (BAP)
A distributor of automotive aftermarket parts in Australia, Burson competes with the likes of Repco, Autopro, AutoOne and Sprint Autoparts. The company listed in late April at an issue price of $1.82, and the share price has run up to $2.13, suggesting the issue price may have been too low. Operating in a highly fragmented market where more than half the automotive distribution stores are owned by small operators, Burson has the opportunity to expand organically and through acquisition.
Genworth Mortgage Insurance Australia (GMA)
Genworth is Australia's largest provider of lenders' mortgage insurance (LMI) and has seen its share price rocket from $2.65 in the IPO in May this year to $3.29 currently. No real surprise when shares were issued on a P/E ratio of less than 8 times and an expected dividend yield higher than 6.7%.
Syrah Resources Ltd (SYR)
Syrah has seen its share price climb more than 120% in the last year. Much of that is likely the demand for stocks exposed to the potentially massive market for graphite. Graphite is one of the main products used in lithium-ion batteries used to power devices from watches to smartphones to electric cars. Syrah's Balama Project potentially holds more ore than the rest of the world's known graphite resources combined.
Given their individual prospects, each one of these companies has the potential to make today's prices look cheap.
