The S&P / ASX 200 (Index: ^AXJO) (ASX: XJO) has opened around half-a-percent lower in morning trade as several stocks trade ex-dividend and the market takes a breather after a strong run in 2015. However, there are some businesses flying higher on the back of positives earnings updates and it's worth considering whether or not they can run much harder.
Altium Limited (ASX: ALU) is a junior tech stock that this week announced it had doubled its interim net profit and dividend to US$6.8 million and 8 cents per share respectively. Unsurprisingly, this delighted investors who have since bid the stock up around 23% to a 52-week high of $4.03.
The business sells electronic circuit boards commonly used in a variety of electronic devices and is globally diversified with around 34% of revenues from the Americas and 43% from Europe. In a growth industry with a strong balance sheet and handy dividend it looks one to watch for small-cap investors.
GBST Holdings Limited (ASX: GBT) is another junior tech stock growing overseas revenues at a rapid click, particularly in the large UK financial services market. Its GBST Composer platform which allows financial advisers and their clients to manage pension fund investments is winning big clients and contracts in the UK, with forward-thinking investors perhaps seeing potential for more to come.
The stock has jumped 2.5% in early trade today and is up more than 20% since revealing the benefits of a successful six-month period in the UK which included orders from clients like Aegon. Another successful half year could see it stretch far beyond today's price of $4.80.
Newcrest Mining Limited (ASX: NCM) this morning announced it had sold down its stake in junior gold miner EVOLUTION FPO (ASX: EVN) at a sale price of 85 cents per share. Newcrest has likely decided to cash in on Evolution's rising share price, while still retaining an interest in future profitability by keeping a 14.9% holding in Evolution.
Newcrest investors liked the news sending the stock up 3.3% in morning trade to a near 52-week high of $14.40. Gold bugs will like the look of it at these levels, although given the uncertain outlook for gold prices investors may be best off steering clear for now.
Qantas Airways Limited (ASX: QAN) is up 3.2% this morning to a 52-week high of $2.94 and up around 125% since announcing a huge full-year loss just six months ago.
The turnaround is the result of a cost-cutting program and a falling fuel bill thanks to the jaw-dropping collapse in oil prices seen over the last six months. The question for investors is can Qantas keep flying higher if the cost cuts translate into bumper profits?
Possibly, but it's unlikely to pay a dividend anytime soon, let alone a sustainably growing one to deliver first-class returns in the years ahead.
