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Why Fortescue and these ASX shares just zoomed to 52-week highs

Although it gave back some of its morning gains, the S&P/ASX 200 index was on form again on Monday. The benchmark index finished the day 0.3% higher at 6,731.4 points.

This led to a good number of shares charging higher, with some even managing to climb to 52-week highs or better. Here’s why these ASX shares achieved this milestone:

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price climbed to a decade-high of $9.75 on Monday. The iron ore producer’s shares were given a boost this month after the price of the base metal rebounded strongly. This rebound has put prices at a level where Fortescue is likely to be generating significant free cash flows again. Especially given its strong production and increasing grades. This could mean another year of bumper earnings and generous dividends for the mining giant’s shareholders.

Medical Developments International Ltd (ASX: MVP)

The Medical Developments International share price hit a 52-week high of $7.50 yesterday before dropping lower. The healthcare company’s shares have been on fire this year thanks to a series of positive developments relating to its Penthrox product. One is the progress it is making in the United States. The company expects to be in a position to address all the FDA’s clinical hold issues during the first quarter of 2020. This could mean a launch is the United States isn’t far away. In addition to this, last week the company advised that the Chinese National Medical Product Administration has approved the opening of the company’s Investigative New Drug application for Penthrox. This is the first step towards having the product approved for sale in the massive China market.

Stockland Corporation Ltd (ASX: SGP)

The Stockland share price hit a multi-year high of $5.00 on Monday. The diversified property company’s shares have been strong performers in 2019 thanks to its solid performance and the increasing demand for income shares. The good news is that FY 2020 has started strongly, putting Stockland in a position to reward income investors with more generous distributions in the next 12 months. In fact, based on its current guidance, I estimate that its shares provide a forward 5.4% distribution yield.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Medical Developments International Limited. The Motley Fool Australia has recommended Medical Developments International 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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