These Four Companies Are Trading At 52-Week Highs

Regular readers will know that I usually run a weekly screen to look for companies trading at 52-week lows. Doing so allows me search for unloved companies that are trading at a discount – a method used by value investors to screen for ideas.

Occasionally, however, I will also do the opposite by screening for companies that are trading at 52-week highs.

This may seem odd. Why would we want to look for expensive companies?

Well, that is not the real reason for this screen. Though we will most probably end up mostly with the most expensive companies on the market.

Stock prices generally moves in relation to their business performance. As a business’ performance improves, so too should its stock price.

In other words, there might be good reasons for companies to be trading at 52-week highs.

So we might be able to find companies with strong business performance from the screen, which then allows us to learn more about these businesses.

Here are a few that appeared on my screen.

Company Name Mkt. Return on  
  S$ million equity (ROE) P/E ratios
TalkMed Group Limited (SGX: 5G3) 670 71% 18.2
Cogent Holdings Limited (SGX: KJ9) 304 29% 9.9
Singapore O&G Ltd. (SGX: 41X) 277 24% 33.6
SATS Ltd. (SGX: S58) 5516 15% 23.4

  Note: ROE is used to indicate the quality of the business.

TalkMed is essentially a group of doctors who provide tertiary healthcare services in the field of medical oncology, stem cell transplant, and palliative care to oncology patients.

The company was listed in 2014 and has since delivered enormous returns to shareholders. The gain for shareholders in the last 2 years was more than 400%. For more information about TalkMed Group, click here.

Cogent Holdings, is a company that is involved in logistics, such as transportation, warehousing, container-depot management, automotive logistics and project cargo. It also has a property-management arm which manages “The Grandstand”, formerly known as Turf City.

In the last five years, the shares have risen 500% richer. In the last 12 months alone, the shares have gone up by 70%.

Singapore O&G has risen in excess of 350% since its listing in 2015. This company has nothing to do with oil and gas. The O&G in its name is an abbreviation for “Obstetrics and Gynaecology. In other words, this company operates in a similar industry to TalkMed, namely, the healthcare industry.

For more information about the company, please click here and here.

SATS provides food solutions and gateway services. The Food Solutions covers airline catering, food distribution, industrial catering, while Gateway Solutions is involved with ground-handling services of passengers, flights and cargo.

In this article, we looked at the strength of the company financial performances in the last five years. This article looked at a few ways the company can grow by riding some mega trends.

Though the growth is not certain, we can be sure of one thing – the stock has performed well in the last 12 months – up by 25% and is now trading at a reasonably high valuation. With the shares at $4.90 a pop, the company is trading at price-to-earnings and price-to-book ratios of 23 and 3.7 respectively.

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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.