It can be an interest-ing exercise to look at the share prices of companies that somehow manage to keep climbing when the market as a whole is in a downturn.

As always, a few do manage to swim against the ebbing tide. A few stocks in this group may also be valuable additions to a portfolio over the long term, as it becomes clear that they are performing well because of the recession-resistant nature of their businesses.

Recent strong performers have few common features, although a couple are energy-industry suppliers. Several are in unusual business niches, which may enhance their potential. A few companies that made highs when the market was down last year have market values exceeding $1 billion; most are worth between $100 million and $400 million, making them among the smallest of small-company stocks.

Here is a sampling of the companies that made new 52-week highs when stocks reached notable lows this past August and November:

> WFI Industries Ltd. WFI is a Canadian-incorporated, Cali-fornia-based player in the growing geothermal industry. Through subsidiaries WaterFurnace In-ternational Inc. and LoopMaster International Inc., WFI manufactures geothermal and water source heating and cooling systems.

Geothermal heating and cooling systems, also known as Geo-Exchange systems, tap into the constant, moderate temperatures found a few feet below the surface of the Earth. In the four fiscal years to 2006, WFI sales per share grew 68% and per-share earnings gained 123%. In the nine months ended Sept. 30, 2007, sales gained 17%.

> Pulse Data Inc. This Calgary-based firm builds and markets a library of seismic geological data for the oil and gas industry in Western Canada. The library is carried on Pulse’s books at more than $100 million.

Pulse has attempted to sell its digital mapping business, and has fought off a takeover bid from a U.S. seismic data firm.

Unusual for the energy industry, Pulse is a dividend-payer. Growth has been uneven, with a loss in 2006 and again this year, although sales per share have grown 19% in four years. But cash flow is strong — up 24% in the nine months ended Sept. 30 — so Pulse has raised its dividend again.

> Dover Industries Ltd. Based in Burlington, Ont., Dover has shown up in screens for value stocks for many years. Its products are anything but cutting-edge: flour, paper cups and cones — the crunchy things into which you put scoops of ice cream. Dover has sold its paper packaging business.

A slow but steady mover, sales per share have risen 11% in five years and book value has grown 24%. Dover generates more cash than it uses for capital spending and dividends, putting it in a comfortable position for future endeavours. It has paid dividends for 67 years.

> Glentel Inc. This company, based in Burnaby, B.C., does two things: it markets cellphones through several chains (WirelessWave, la Cabine T) and it provides communications services for business.

In four years, sales per share have gained 155% and per-share earnings 37% while book value doubled. Cash flow more than covers capital spending. In the nine months ended Sept. 30, sales gained 21% and per-share earnings, 87%. The question facing the firm, however, is whether Glentel’s focus on cellphones and wireless services will enable it to escape the worst of a business slowdown.

> Points International Ltd. This Toronto-based company has an interesting business: it offers an online service to swap and redeem reward program points such as AIR MILES.

So far, Points Int’l hasn’t seen much success on the bottom line. It made a profit in 2006, when cash flow finally turned positive. Sales per share were unchanged through 2004-06. The concept has the potential to sidestep the worst blows of a business slowdown. In 2007, Points Int’l made big gains, with full-year revenue expected to rise about 50%.

> Westjet Airlines Ltd. This Calgary-based airline has established itself as a profitable air carrier, with sales per share up 51% in four years. Per-share earnings gained 27% in the same period. In in the nine months ended Sept. 30, per-share earnings gained 32% and revenue climbed 22%.

The capital-intensive airline business consumes all the cash WestJet can generate and then some. The airline has to borrow every year to keep up with equipment and service demands.

@page_break@> Shawcor Ltd. Based in Toronto, ShawCor keeps pipelines operating in the energy and petrochemical industries by providing anti-corrosion, sealing and inspection systems.

This line of business should be less cyclical than the energy and chemical industries themselves, but ShawCor’s earnings varied widely in the years from 2002-06. Four-year sales-per-share gain was 41%.

In the 2005 and ’06 fiscal years, ShawCor generated free cash flow (after capital spending) and discretionary cash flow (after dividend payments).

> Great Canadian Gaming Corp. Based in Vancouver, Great Canadian operates casinos and race tracks, with associated entertainment and food services. It had been expanding faster than its capital would allow, but new borrowing arrangements have dealt with that. The firm has also been trying to improve efficiency. Since 2003, sales per share have more than doubled, while cash flow has varied widely.

Great Canadian’s businesses have the potential for stability in a business slowdown, but its own operating results need the same stability.

> Dynasty Metals & Mining Inc. Also based in Vancouver, this relatively young exploration company has no revenue but owns gold-mining prospects in Ecuador. Its discoveries have lifted its stock price but, of course, its prospects depend on getting into a position to start production.

The big unknown is Ecuador’s new socialist president, Rafael Correa, and his plans for company regulation and taxation. IE