On the first day of trading since Christmas, the S&P/ASX 200 (ASX: Index: ^AXJO) (ASX: XJO) was trading 44 points, or 0.9%, higher in mid-afternoon trade. However, the share prices of the following four companies were rampaging higher.
- Wesfarmers Ltd (ASX: WES) – up 2.8%
The owner of Coles, Bunnings Warehouse, Kmart, Officeworks and more, was trading 2.8% higher. The company did not release any specific news or commentary to the market that could explain its price rise. However, Wesfarmers is a well-run, established, dividend-paying business that is in high demand amidst the record-low interest rate environment.
- A2 MILK FPO NZ (ASX: A2M) – up 16%
The a2 Milk Company Limited share price is going much the same way as Bellamy's Australia Ltd (ASX: BAL). The strictly a2 protein-only dairy products manufacturer recently expanded its range into 'premium' infant formula products with a focus on Chinese consumers. Thanks to very strong demand for its infant formula, a2 Milk recently upgraded its full-year profit guidance to the delight of shareholders. The company's share price is up 236% in six months and 104% in a month.
- Bega Cheese Ltd (ASX: BGA) – up 13%
Like a2 and Bellamy's, Bega Cheese has recognised the potential of the Asian dairy foods marketplace. Recently, Bega Cheese's Tatura business teamed up with Blackmores Limited (ASX: BKL) to manufacture high-quality dairy products for "consumers in Australia and Asia." Blackmores' brand is well regarded in Asia, while Bega has the dairy manufacturing experience, capabilities and supply chain.
- Freedom Foods Group Ltd (ASX: FNP) – up 21%
In November, Freedom Foods sold its remaining shareholding in a2 Milk, realising a capital gain of around $64 million. The diversified food company operates in the Health and Wellness sector, but no company-specific news was released today to explain its sudden rise. Further, after being issued with a 'please explain' by the ASX, the company said it's not aware of information that could explain its 20% jump. Over the past five trading days, Freedom Foods share price has risen more than 40%.
