The S&P / ASX 200 Index (^AXJO) (XJO.AX) has closed 0.4% higher, at 4,757.1. Diversified financials, banks, oil and gas companies led the way. Health care was the biggest riser, with several stocks benefitting from the listing of Virtus Health. The Australian dollar briefly dipped below 94 US cents, as it continues to slide.
Here’s why these three stocks are hot right now.
Discovery Metals Limited (DML.AX) climbed 12.5% to close at 18 cents, after the copper miner announced that it was still in discussions with interested parties regarding a potential takeover offer. Earlier this year, Cathay Fortune withdrew its $1.70 a share bid, and the share price plummeted. It seems that Cathay may have come back or a second, cheaper bite at the cherry. The next takeover offer is unlikely to be anywhere near $1.70, but existing shareholders will be hoping for something materially above today’s share price.
Sirtex Medical (SRX.AX) rose 5.8% to close at $12.15, still well off 52-week highs of $13.40. Possibly a recipient of the good vibes flowing from the Virtus Health listing today, Sirtex last updated the market in early April. At the time the company announced that sales of its trademark product SIR-Spheres, a treatment for liver cancer, had grown by 6.3%, compared to the previous corresponding period. It was the company’s 35th consecutive quarter of positive growth. With the Australian dollar continuing to slide, Sirtex should also be a beneficiary, with a portion of the company’s revenues coming in foreign currency.
Fleetwood Corporation (FWD.AX), a maker of caravans and temporary accommodation for the resources and energy industry, saw its shares rise 5.2% to close at $3.63. Heavily sold off this year, Fleetwood has seen its shares fall from over $13, as the company downgraded profit expectations for the year ahead. Heavily impacted by the big miners cutting or delaying projects, Fleetwood has also been hit by weak trading conditions for recreational vehicles. Bargain hunters may have finally jumped in, perhaps hoping that the worst is behind Fleetwood.
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Motley Fool writer/analyst Mike King doesn’t own shares in any companies mentioned.