The FTSE fell 4% last month, but these 5 shares bucked the trend.
What a shocker! During the month of January, the FTSE 100 fell 4.1%. During this wonderful bull market, stretching back to March last year, the leading index has been virtually on a one-way trajectory -- up!
January's reverse has unnerved investors. It has reminded them of the risks involved in investing in the stock market, and in investing in economically sensitive companies.
Still, the FTSE 100 stands a fair way above 5,000, up 50% from its March 2009 lows, a truly stunning performance.
As to what's next for this market, who knows? Will it put its January woes behind it and resume its upward momentum, or will it slump back below 5,000 and hurt the feelings of the shortest month of the year?
Of course, not every share fell. Here we look at some of the January's stock market stars. As usual with these monthly reviews, we're not necessarily interested in the biggest percentage gainers -- we're trying to find companies that still look decent value and could build on January's gains in the months and years to come.
The shares you should have bought
Why such juicy gains?
So why did the companies listed above move so much in just a one-month period?
Games Workshop's 43% jump in January is quite simply due to it saying pre-tax profits in respect of the year to May 2010 were likely to be materially ahead of market expectations.
For investors in this designer, manufacturer and retailer of miniature figurines and games, this was gunshot-music to their ears. The company is on the road to recovery after going through some lean years, culminating in a share price low of 119p in 2008.
Forward estimates have Games Workshop trading on a P/E of 11 and a (resumed) dividend yield of 2.6%. Cheap enough if they can maintain this strong momentum.
Punt To Profit
ProStrakan Group is one of those small biotech companies that feels like it has been around for years, taking investors on a roller-coaster ride as they attempt to move from a speculative punt-type company to a profitable and growing concern.
The company is expecting 2010 to be its breakthrough year, predicting it will be its first year of operating profitability. It also expects two US product approvals by the middle of 2010, something always guaranteed to get hearts racing amongst hardcore biotech investors.
ProStrakan is growing strongly and has some decent momentum behind it. As ever, the key to a really successful investment is determining how profitable its products will be. You pays your money and takes your chances, if you're brave.
Desiring A Gusher
The Desire Petroleum share price chart over the past 5 years looks more like something from the science lab than from the investing world. The shares traded at 20p in 2007, 105p in 2008, 25p in 2009 and now are back up at 115p. That alone tells you something about the speculative nature of this Falkland Islands oil prospector
In January, Desire announced its open offer to raise £20m had been substantially over-subscribed. It seems there are no shortage of punters willing to climb about this baby.
The excitement is about to reach fever-pitch, as the Ocean Guardian drilling rig is expected to arrive in the Falklands ready to commence drilling in early February 2010. The same rig will be also be used to drill a well on the licence held by Falkland Oil & Gas (LSE: FOGL) and BHP Billiton (LSE: BLT). Good luck to them, and to all who've hitched their fortunes to the Falklands drill bit.
Sex Sells
Oxford Instruments researches, develops, manufactures and sells high technology instruments, its three segments being Nanotechnology Tools, Industrial Products and Service. It's making a reappearance on this list, having last been featured in November 2009.
Since then, the share price has fallen, then risen again in January 2010 as the company announced results in line with expectations and above the same period in the prior year.
Nanotechnology, plasma and the like sound sexy and exciting, and Oxford Instruments is forecast to make good profits in the two years ahead. That said, this company has been treading water for quite a while. Its share price has done little in the last ten years, oscillating between 150p and 250p most of the time, and it's paid the same 8.4p dividend per share for each of the last eleven years!
Still, it's one to keep an eye on, especially if they can really get some momentum going post-recession.
Back From The Dead
Enterprise Inns was one of those shares on serious life-support at the height of the credit-crisis panic. Its share price had slumped from 775p in 2007 all the way down to just 32p in 2009.
In these "risk is back" days, the shares in the pub group now trade at a somewhat frothy 119p, up 27% in the month of January, proving conclusively that if you can get the timing right, every dog can have its day.
In January, Enterprise announced trading during the sixteen weeks to 16 January 2010 was 'variable', with the decline in average net income per pub easing to 4%, having fallen by 8% during the last financial year. Bad news seemingly sells, although 'less bad news' is clearly better than 'worse bad news'.
Debt remains the over-riding concern, as does the continued slow-decline of the great British pub. Enterprise Inns is surely one for the speculators and traditionalists.
That's it for this month's roundup. If there's a share you think will do particularly well in February, let us know why in the comment box below...
More on the economy and the markets:
> If you're in the market for buying shares, consider opening an online broker account with The Motley Fool's Share Dealing Service. You can buy and sell shares in real time for a flat rate of just £10. Click here to find out how you can open an account for free today. There is no obligation to trade.
> Bruce Jackson doesn't have an interest in any of the companies mentioned in this article.
