Here Are 4 Companies Trading Near A 52-Week High

I like to run a screen regularly to find companies with share prices that are near their respective 52-week lows. Some great investors – such as John Neff and John Templeton – scour lists of beaten down stocks for potential investing opportunities. That’s because they believe that stocks that have fallen hard may be priced at lower than their real values.

But sometimes, I like to screen for companies that are near a 52-week high as well. This may seem counterintuitive at first. Why am I looking for companies with climbing share prices? Thing is, over the long-term, a stock’s price tends to be heavily influenced by the performance of its business. So, companies with a rising stock price could be enjoying growth in their businesses.

With this in mind, let’s take a look at four companies I chose at random from a list of companies that are currently near a 52-week high. They are: Sim Lian Group Ltd (SGX: S05), Venture Corporation Ltd (SGX: V03), Sheng Siong Group Ltd (SGX: OV8), and Jardine Strategic Holdings Limited (SGX: J37).

Source: S&P Global Market Intelligence

Property developer Sim Lian has one of the fastest 10-year growth rates in revenue and profit amongst Singapore-listed companies. In its fiscal year ended 30 June 2016 (FY2016), it experienced a 52% decline in revenue and 71% decline in profit. But even so, the company’s top-line and bottom-line in FY2016 are 289% and 255% higher, respectively, compared to FY2006.

Unfortunately, investors no longer have the opportunity to invest in the company. Its controlling shareholders – which includes the founder Kuik Ah Han – recently offered to take the company private at a price of S$1.08 per share. The privatisation offer was successful and shares of Sim Lian have been suspended from trading since 11 October 2016. They will be delisted soon.

Venture, an electronics manufacturing services provider, and Sheng Siong, a Singapore-focused supermarket operator, have both seen their businesses grow in 2016 thus far. During the first-half of the year, Venture’s revenue and profit stepped up by 3.5% and 15.3%, respectively, compared to a year ago. As for Sheng Siong its revenue and profit growth for the same period were 5.3% and 14.1%.

The last company is Jardine Strategic, a conglomerate with a wide variety of business interests, such as bricks-and-mortar retail, the ownership and management of hospitality assets and commercial buildings, and the distribution of vehicles.

The company had raised its dividend in the first-half of 2016 to US$0.09 per share, up from US$0.085 a year ago. Also, it has a P/E ratio of just 8.6 (more than a quarter lower than the market average) despite having its shares gain 11% over the last 12 months.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.