This past week saw quite a number of companies hitting new yearly highs. I wanted to focus on three of them that many people would probably be familiar with already, and highlight the latest news regarding each of them.
RCG Corporation (ASX: RCG), operator of The Athlete's Foot shoe store chain, announced this week that it acquired two businesses, one being the wholesale and distribution businesses of the shoe brand Saucony located within Australia and New Zealand.
The price of the acquisitions was $2.95 in cash and the issue of about 8.69 million RCG shares at an effective issue price of 68.3 cents per share, or about $5.93 million. The company stated that based on the business' performance, it is projecting an annualised positive impact of about 10% to RCG's earnings per share. It has adjusted its 2014 earnings per share growth target from 10% to 15%.
The second acquisition was the nine-store chain Podium Sports, which operates athletic footwear and apparel clearance stores in outlet malls and DFOs. This allows the company to have an efficient business process of well managed inventory clearance and sustained brand management.
Cinema and theme park operator Village Roadshow (ASX: VRL) told shareholders at its AGM that it is planning to build what it calls the best water theme park in world in Sydney. It will have an inland sea as well as 40 rides, and be the only theme park operating in the region once completed.
Internationally, the company will divest itself from two of its US water parks, yet retain its 50% ownership of Wet'n'Wild Las Vegas. Its next new park will be built on the Chinese vacation island of Hainan, taking advantage of the great increase in Chinese tourism. It is expected the first stage of the park will be open in late 2014 or early 2015.
AV Jennings (ASX: AVJ), a residential house builder, is starting to feel the growth in the housing market. For the first four months of FY2014, it has had a 138% jump in new leads for houses, from 1,134 to 2,701, from the previous corresponding period. New contract signings are up from 215 to 479 over the same period.
The company cautioned that all of the potential revenue may not come in within the current financial year due to delays and weather conditions. However, it is a good sign for the beginning of a hopefully strong trend for the near term.
Foolish takeaway
Sometimes investors can get some investing inspiration by looking at companies that are hitting new yearly highs. If you haven't been keeping up with some of them recently, it's a good opportunity to find why they're going up, so jump online or find some news about them.
