Last year it was Mvelaphanda Resources and Messina at the top of the pile of Top Performers. As we pointed out then, it seemed unlikely that either of them would stay there, though of the two, Mvela had the better prospects. As it turned out, Grindrod came storming through to a well-deserved number one ranking. And it's likely to stay there this year, unless something catastrophic happens to the global economy.
So which other companies are on the horizon that could make a meaningful move up the Top Performers league? The best bets are on those that have already made a significant leap from obscurity into the top 20 or 30. Of these, the one that stands out is Goodhope, screaming into number nine spot from 139th last year. If anything, Sovereign Foods' performance was even better, reaching 12th from 197th last year. Gold Reef and Cullinan also made the top 20, as did AdvTech, coming from 243rd last year to 20th this year.
Goodhope's performance is an anomaly. Formerly listed as Oakfields, the company used to be involved in the breeding and racing of thoroughbred horses. Oakfields' share price had languished for some years and last traded in November 2003 at 38c. Shortly thereafter, when the company changed its name and its nature of business, to diamond mining, the share price soared to around 290c. This has been the main driver for the five-year internal rate of return (IRR). Since then the price has fallen progressively and is now trading at around 180c. The company's also making losses, so don't expect a further re-rating of this company next year.
Sovereign and Gold Reef both have good fundamentals and the share prices should track earnings growth. Cullinan and Advtech, though cheaper stocks, also have good fundamentals.
