As companies rush to finalise their year-end results and report to the market before the end of this week, investors are busy wading through a mountain of financial statements, outlook statements and news reports.
Four stocks which have reported this week and seen their share prices rally are:
- Cover-More Group Ltd (ASX: CVO) which gained 7.1% to $2.12
- M2 Group Ltd (ASX: MTU) which gained 8.3% to $7.40
- Mesoblast limited (ASX: MSB) which gained 5.8% to $4.52
- Spotless Group Holdings Ltd (ASX: SPO) which gained 3.1% to $1.96
In the cases of M2 Group and Spotless the share price action has taken their stocks to new 52-week highs. Meanwhile Mesoblast's shareholders will be relieved to see the stock moving up and away from its 52-week low. Overall the market appears to have liked what it has seen in these four companies.
There are at least two takeaways for investors from these results.
Firstly, both Cover-More and Spotless have been recent floats. IPO investors are sitting on tidy gains of 26% and 13.7% respectively. Despite all the reasons to be sceptical when a float occurs, the above average gains from these two are a reminder that IPOs are certainly worth looking at, as some turn out very well.
Secondly, despite the usual scaremongering from some about the state of stock markets, there are still plenty of companies growing their earnings at impressive rates.
