3 small caps booking big gains

These 3 small cap stocks are flying at 52-week highs this week – here’s why.

Select Harvests Limited (ASX: SHV)

Almond producer Select Harvests Limited may only be a $655 million small cap at present, but with rapid expansion into the health food markets of Asia, Europe and the Middle East big things look to be on the cards for this company.

Select Harvests share price has hit a 52-week high this week, closing off May 17 at $6.88 – up from $5.10 at this time last year.

Last month Select Harvests announced an update on its 2018 crop, with 90% of the crop now harvested and yield in line with recent estimates with 45% committed for sale.

The company has seen strengthened demand from the US and, with 34% of its orchards yet to mature, bumper crops are expected for the foreseeable future.

Select Harvests is a long-term growth option for investors, but if its 12 month share price chart is anything to go by, things look to be tracking along well.

Another one to watch in the space is walnut producer Webster Limited Fully Paid Ord. Shrs (ASX: WBA), whose share price is also hovering at 52-week high levels, closing May 17 at $1.70 – up from $1.25 at this time last year.

Webster have been focusing on making acquisitions to diversify its operations, with an almond orchard now in its artillery.

Noni B Limited (ASX: NBL)

Clothing retailers have experienced plenty of ups and downs lately, but women’s apparel retailer Noni B Limited has been flying of late – sitting at a 52-week share price high with a May 17 close of $2.85.

Noni B handed down an investor report this week detailing its $31 million acquisition of a portfolio of brands from Specialty Fashion Group Ltd (ASX: SFH).

The acquisition will include the Autograph, Millers, Crossroads, Rivers and Katies brands with a network of 750 stores across Australia by the July 2018 completion, bringing Noni B’s overall Australian portfolio to 1350 stores.

Specialty Fashion Group will remain listed and retain ownership of its City Chic brand.

Noni B announced the successful completion of institutional entitlement offer and placement on May 16 raising approximately $37.8 million with 100% take up by eligible institutional shareholders with retail shareholders now able to subscribe for 1 new share for every 13 shares held at the record date at $2.50 per share from May 21.

Noni B reported a revenue rise of 35% to $193.2 million for the 6 months to December 31, 2017 with like-for-like sales up 3% and statutory NPAT up a whopping 379.5% from the previous corresponding period to $11.8 million.

One to watch as this new acquisition comes to fruition.

Sector stalwarts such as Premier Investments Limited (ASX: PMV) certainly appear to be getting the formula right with Premier shares closing off May 17 at $16.01 – a rise of 30% from its $12.31 share price at this time last year.

oOh!Media Ltd (ASX: OML)

Out of home media company oOh!Media is a small cap advertisement player now tipping the larger end of the scale with a $902 million market cap.

oOh!Media shares are at a 52-week high at present, with its May 17 close of $5.47 23% above its $4.43 share price at this time last year with a steady track upwards in between.

oOh!Media this week reported its digital revenue arm now contributed to 60% of overall revenue, resulting in a rise of 13% to $380.3 million and underlying NPAT up 35.5% to $33.1 million.

Shareholders have been kept happy by a 15c fully-franked full year dividend with CY18 EBITDA guidance at between $94 million and $99 million with between $30 million and $40 million capital expenditure.

oOh!Media has certainly demonstrated its got a strong balance sheet as a backing for its acquisition strategy which last month included a non-binding indicative offer made to HT&E Ltd (ASX: HT1) for its Adshel business, which was declined by HT&E.

HT&E shares have also been tracking upwards lately, after a rough start to the calendar year in terms of share price.

oOh!Media seems intensely focused on its expansion strategy and is certainly one to watch in the digital advertising space.

From small caps showing strength to companies with disruptive force to be reckoned with.

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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 Premier Investments Limited. 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.

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