Although in the last 12 months the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has gained a reasonably solid 8%, it pales in comparison to some of the gains on the benchmark index.
The three shares listed below have more than doubled in value during this time. Can they climb higher?
The BlueScope Steel Limited (ASX: BSL) share price is up just over 100% in the last 12 months. In February the steel manufacturer reported a 79% jump in half-year profit to $359 million, thanks largely to cost improvements, sales growth, and improved steel spreads. Whilst I think its strong performance has justified the incredible rise of its share price, I feel it would take something special to keep it climbing significantly higher now. But with Chinese steel production soaring to a record high last month, I am concerned that there could be an oversupply. For this reason I would stay clear of BlueScope.
The Webjet Limited (ASX: WEB) share price is also up just over 100% since this time last year. The catalyst for this was an extremely positive half-year report which revealed strong organic growth and market share gains for all its key businesses. This enabled Webjet to post an 86.9% increase in half-year net profit over the prior corresponding period. With airfare tickets rising and Webjet likely to continue winning market share, I expect an equally strong second-half could take its share price higher still.
The Whitehaven Coal Ltd (ASX: WHC) share price has risen a stunning 242% in the last 12 months thanks to the Chinese government's decision to curb its coal production. This led to a sharp reduction in supply at a time when Chinese steelmakers were ramping up production. As you might expect, coal prices rose sharply. But now that demand from China is waning and its inventories are growing, prices look set to remain under pressure for the foreseeable future. Because of this I would suggest investors give the coal miner a wide berth and focus elsewhere in the market instead.
