If you want a good overview of how a company is tracking, take a good look at its 52-week share price chart, right? For these 3 ASX stocks at 52-week highs, things are certainly looking pretty healthy on the share price front, but the reasons behind their rise may not always be as they seem. Let’s check out why these 3 S&P/ASX 200 shares are flying high. Mantra Group Ltd (ASX: MTR) Shares in Australian accommodation operator Mantra Group Ltd rocketed up to hit a 52-week high on April 23 with a closing price of $3.95. Mantra shares are down…
If you want a good overview of how a company is tracking, take a good look at its 52-week share price chart, right?
For these 3 ASX stocks at 52-week highs, things are certainly looking pretty healthy on the share price front, but the reasons behind their rise may not always be as they seem.
Let’s check out why these 3 S&P/ASX 200 shares are flying high.
Mantra Group Ltd (ASX: MTR)
Shares in Australian accommodation operator Mantra Group Ltd rocketed up to hit a 52-week high on April 23 with a closing price of $3.95.
Mantra shares are down slightly today to $3.94, but its share price has gone gangbusters since news broke Mantra is set to be taken over by Paris-based AccorHotels on May 23.
The Mantra takeover is a $3.96 per share scheme of arrangement which will see Accor become Australia’s biggest hotel chain.
Accor already manages 212 hotels in Australia and 35 in New Zealand with Mantra holding more than 135 hotels across Australia, New Zealand and Indonesia.
The travel and tourism industry is booming across the board, with strong share price rises seen in related stocks such as Sydney Airport Holdings Pty Ltd (ASX: SYD), Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB).
Those who made some cash out of Mantra are probably also well-versed on players like Crown Resorts Ltd (ASX: CWN) which is seeing some solid success in the integrated resort and entertainment space with Crown shares up 0.7% to $12.93 at the time of writing.
Sirtex Medical Limited (ASX: SRX)
Shares in biotechnology company Sirtex Medical Limited are up to $27.76 at the time of writing, a 52-week high for the stock and up 87% from its share price of $14.80 at this time last year.
Like Mantra, Sirtex has pushed higher this calendar year after receipt of a takeover offer from US-based Varian Medical Systems Inc.
Varian offered a 49% share price premium in its $1.6 billion takeover offer for the Australian cancer treatment developer.
The $28 per share cash offer came after a number of unsolicited takeover proposals in late 2017 after Sirtex suffered a $26.3 million full-year loss in 2016/17 after making a $90 million write down.
Varian is listed on the NYSE and develops radiotherapy and screening technology.
Sirtex distributes radiation therapy in more than 40 countries and more than 1000 hospitals.
Beach Energy Ltd (ASX: BPT)
Shares in oil and gas exploration company Beach Energy Ltd are up 1% at the time of writing to $1.53 after tracking upwards steadily from its share price of 72c at this time last year.
Beach’s price surges are most likely off the back of overall oil prices rises but with expectations the oil price will head upwards significantly in the short term, more good news for Beach as well as peers Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) is likely on the cards.
And it’s not just everyday investors who have been more interested in Beach lately, with its shareholder registry showing independent non-executive director Jocelyn Morton bought 50,000 shares back in March after only joining the board in February.
Beach reported a 7% drop in profit for its half-year results back in February but lifted guidance for FY18 for its Cooper Basin project and the stock should be on the watchlist of every growth investor seeking out under-the-radar commodity players, but be wary, oil prices are volatile, and share prices usually react in kind.
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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Crown Resorts Limited, Flight Centre Travel Group Limited, and Sydney Airport Holdings Limited. The Motley Fool Australia has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.