The benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) didn't have a great start to the year and finished the month lower by about half a percent at 6,037 points.
Three shares in particular didn't let this hold them back. Here's why they smashed the market and posted strong gains in January:
The Auscann Group Holdings Ltd (ASX: AC8) share price finished the month with a gain of almost 104%. AusCann was given a major boost early on in the month when the Federal Government changed regulations to allow companies to export medicinal cannabis. Many believe that AusCann will be a big winner from the change due to its growing capabilities and strong ties with Canadian cannabis giant Canopy Growth Corp. I can't say I'm surprised by this gain, AusCann is arguably the best-positioned medicinal cannabis company in Australia. Though it is early days.
The Bellamy's Australia Ltd (ASX: BAL) share price ended January with a gain of 42%. On January 15 Bellamy's surprised the market with yet another profit guidance upgrade, sending its share price surging higher. The infant formula company increased its revenue growth guidance from between 15% and 20% to an improved revised target of 30% to 35%. Furthermore, it increased its EBITDA margin guidance from the old target of 17% to 20% to the new range of 20% to 23%. I've been very impressed with the Bellamy's turnaround and think it could still be a great investment option even after its strong run.
The Lovisa Holdings Ltd (ASX: LOV) share price climbed over 14% during January thanks to a positive trading update. That update revealed that first-half sales for the six months ended 31 December 2017 were up 18.8% on last year and up 7.4% on a comparable store basis. In light of this, the company expects first-half EBIT to be in the range of $34.5 million and $35 million. This will be a lift on the prior corresponding period of between 22% and 24%. Lovisa would arguably be my favourite retail share at the moment and one that I believe has significant growth potential. Especially if its expansion into the United States is a success.
