Winning stocks in reporting season come in all forms.
Here are two S&P/ASX 200 Index (ASX: XJO) (Index: ^AXJO) stocks showing strong gains from the reporting season over the past month.
Retail Food Group Limited (ASX: RFG)
The growth brand business: This food service company already has a number of food and drink store brands like Donut King, Brumby's Bakery and Pizza Capers, but Retail Food Group recently added gourmet coffee specialist Gloria Jean's Coffee to the list. The company has experience in wholesale and retail coffee through its cafés and coffee bean distributors, but Gloria Jean's is a strong brand with international stores, so the acquisition will add revenue.
The stock is up 23% in the last month after announcing a 46.4% rise in half-year net profit. Earnings are forecast to rise in the double digits over the next several years. Food chain brands can grow at a good pace over the long term, so it could be a solid earner for investors.
Crown Resorts Ltd (ASX: CWN)
Distressed stock pick-up: The integrated resorts operator that owns the Melbourne Crown Casino and gambling venues in Perth and overseas is up 12% in the last month. Yet the company, which is headed by billionaire James Packer, announced interim reported NPAT was down 47%! A lot of the previous bad news about the fall in revenue for its Macau casino was baked into the beaten-down stock price. When the poor interim results came out, the stock jumped up.
Crown and its joint venture company Melco Crown Entertainment Ltd have a long casino development pipeline for the next 5 – 6 years, so the setback in Macau earnings is a short-term situation. I would keep Crown Resorts in your watchlist and even start a small position as the company adapts to new business conditions and continues building integrated resorts.
