Tops vs Flops! ASX stocks hitting new highs and lows (is a2 Milk Co. the best turnaround ever?)

Welcome back to the 52-week Series – a recap of ASX 200 stocks that have tagged a fresh yearly highs and lows in the past week.

Each Monday, before I get stuck into the winners and sinners for the week that was, I like to put the moves of these companies into context.

Last week was a forgettable week for the All Ordinaries Accumulation Index (XAOA). Remember, I like to compare to use this index for comparisons because it is broad (the XAOA contains around 500 of Australia’s biggest stocks compared to just 200 in the S&P/ASX 200), and it also adds back dividends (whereas the S&P/ASX 200 does not).

The All Ordinaries Accumulation Index (XAOA) weekly chart for the week ending 24 May

The XAOA dipped 1.0% last week, and therefore we can perhaps forgive any stock that fell by roughly the same amount. I’m not arguing that the XAOA’s decline justifies a company making a new 52-week low – not even close – and I suggest there are far bigger issues at play for each of these companies than a 1% fall in a benchmark index.

The dip in the broader market does however highlight just how good the stocks that made 52-week and new all-time highs were. Everywhere else investors were nervous about whatever, and they sold stocks for the most part – but nothing got in the way of them buying the stocks in our Winners List.

Think about what that says about the prospects of these companies!

If as an investor, your job is to try and position yourself in the best performing stocks within the market you invest in, then I suggest a close look at this week’s Winner’s List is a must.

I also suggest that regardless of whether a market is rising or falling, you should also run the ruler over each of your holdings which are substantially underperforming the XAOA. If they’re in the Sinner’s List – do they still deserve a spot in your portfolio?

ASX Winners week ending 24 May

A ‘Y’ in the ‘ATH’ column denotes an all-time high as well as a 52-week high. (Note: for both tables, only stocks that had an average daily turnover greater than $1 million per day over the past month were considered.)

The Winners list for the week ending 24 May

A long list – despite the decline in the broader Aussie stock market this week.

The a2 Milk Company (ASX: A2M) deserves a special mention because it’s possibly the most spectacular turnaround story in the list. It wasn’t all that long ago A2M was a stalwart of the 52-week lows list. 

Which begs the question – doesn’t that mean I should just hold only all of my 52-week losers in the hope they do an a2 Milk? 🙏

You’ll have to ask a value investor that question, I prefer the trend to hope. I note that my technical model would have had you back in A2M under $5 around the start of February. Certainly not the low of $3.70 – but also without the agony of holding all the way down from A2M’s all time high north of $20!

A2M is one of the best turnaround setups you’ll ever see

Rio Tinto (ASX: RIO) also deserves a special mention because I bet you’d probably have it a long way down the list of stocks that might have made an all-time high during the week. It did, with Tuesday’s high of 136.82 pipping the previous zenith of 136.73 on the first trading day of 2024.

RIO has backed off since its new high, but is still showing very solid short and long term uptrends. It’s also one of the best placed stocks in the world to take advantage of the recent uptick in metals prices. RIO gets my quiet achiever award this week!

RIO gets my quiet achiever award this week!

Changing gears a little, it’s worth also pointing out that several ETFs made this week’s Winners List. I note strong performances in the charts of the Global X Physical Silver ETF (ASX: ETPMAG), the Betashares Asia Technology Tigers ETF (ASX: ASIA), the iShares MSCI Japan ETF (ASX: IJP), and the Global X Semiconductor ETF (ASX: SEMI).

ETPMAG reflects the stellar run in the physical silver price

ASX Sinners week ending 24 May

A ‘Y’ in the ‘ATH’ column denotes an all-time low as well as a 52-week low.

The Sinners list for last week

Fortunately, there weren’t too many for the Sinners list this week. Unfortunately, what the list lacked in numbers it made up for in quality (or lack thereof!).

Sinners List regulars Domain Holdings Australia (ASX: DHG), Lendlease Group (ASX: LLC), and Omni Bridgeway (ASX: OBL) were joined by new entrants Nine Entertainment Co. Holdings (ASX: NEC) and Telstra Group (ASX: TLS). Welcome to the Sinners party NEC and TLS! 😭

NEC had the dubious honour of joining the sinners list last week