4 ASX stocks that jumped over 15 per cent last week

Even in a flat market, there were some strong winners

Mike King

Mike King is a Fool.com.au Investment Analyst and Writer. He caught the investing bug more than a decade ago, at a time when the U.S. had invaded Iraq and fear reigned in the markets. His initial success as the markets took off encouraged his passion and thirst for knowledge. With 13 years behind him at one of Australia's largest domestic banks, Mike's passion for stocks led him to join a boutique funds management firm, where he stayed for four years. A seven-year stint in equity research at one of the largest investment banks in the world followed that, giving Mike a thirst to pursue his passion further. Mike holds a Diploma in Applied Finance and Investment and a Graduate Certificate in Financial Planning. His passion is to help retail investors invest better, and that passion was one of his primary reasons for joining The Motley Fool Australia in late 2011. Mike has written thousands of articles since joining, including for Fairfax Media, Yahoo!7, Ninemsn and has also appeared on ABC's The Business. You can see all of Mikes' holdings here

Published April 30, 2012 11:42 am AEST

The volatility continues in the ASX Market, and despite the day-to-day moves, for the week the S&P/ASX200 Index hardly moved, falling just 4.4 points, from 4,366.5 to close at 4,362.1 on Friday 27^th April 2012.

Despite the flat market, four stocks managed to jump more than 15 per cent for the week.

A takeover offer helps

PMP Limited (ASX: PMP) more than doubled, jumping 106.7 per cent to close at $0.62 cents, after receiving a takeover offer from an unnamed suitor. The announcement was made with very little details apart from the offer range of between $0.68 to $0.78 cents.

The lack of details about the offer is likely to be the cause of the stock still trading 6 cents – around 10 per cent – below the bottom of the offer range. Private Equity firms are the most likely bidders for the commercial printing firm. PMP's chairman, Ian Fraser is no stranger to takeover offers, with this being his 11^th takeover brawl.

PMP is forecasting full year earnings before interest and taxes (EBIT) of between $30 to $33m, an fall on 2011's result of $58.7m (before significant items).

Heart to Heart

Heartware International Inc (ASX: HIN) moved by 15.5% to close at $2.05, after the US Food and Drug Administration (FDA) voted 9 to 2 that the benefits outweigh the risks for the use of the Heartware Ventricular Assist System. Heartware makes small heart pumps for the treatment of advanced heart failure.

The vote is an important step in gaining FDA approval of the Ventricular Assist System in the United States. Heart transplantation is the only current curative therapy for heart failure, and there are less than 4,000 donor hearts available globally each year. Heartware's system offers an alternative to a full heart transplant.

Another takeover offer

Brockman Resources Limited (ASX: BRM) moved 17.65%, 36 cents to close at $2.40. The iron ore explorer and developer received a takeover offer from Wah Nam International (HKG: 0159), in December 2011. Wah Nam has increased its shareholding to over 80 per cent, and has extended its offer until 31^st May 2012.

The offer for each Brockman share is for A$1.50 in cash plus 18 Wah Nam Shares. At current exchange rates, the offer is worth approximately A$2.56.

EU marketing approval

pSivida Corporation (ASX: PVA) moved 29.7%, up 55 cents to $2.40. pSivida announced on the 26^th April 2012 that it had received marketing authorisation for its Iluvien product from the Austrian Agency for Health Food and Safety and expects Iluvien to be available to Austrian patients by the end of 2012.

This announcement marks the first European Union approval for pSivida's Iluvien product, which is designed for treatment of back-of-the-eye diseases associated with diabetes.

The company's share price has doubled since late February 2012, on the back of the expected EU approval. pSivida expects additional marketing authorisations in the coming months, which should further boost the share price.

Foolish takeaway

The results of Heartware and pSivida show that early investments in small biotechnology and pharmaceutical companies can be very successful. Of course for every company that is successful, there are plenty more that aren't, and it can sometimes take many years for the companies to become successful. Our premium Motley Fool Share Advisor service last week released its latest issue – dedicated to ASX biotechnology businesses. Take Stock is The Motley Fool Australia's free investing newsletter.Take Stock readers can currently save 50% off our regular price. Click here now for a free subscription to Take Stock

The ASX is already on the move in 2012, and Goldman Sachs experts recently said they reckon S&P/ASX 200 could top 5,000 next year. Read This Before The Coming Market Rally is a must-read for investors who don't want to miss out on the party. Click here now to request your free copy, before it's too late

More reading

Motley Fool contributor Mike King doesn't own shares in any companies mentioned. Take Stock is The Motley Fool Australia's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it's still available. This article contains general investment advice only (under AFSL 400691).

Automatic Renewal

By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted service. Don't worry, though – you're not locked in, and can cancel your auto-renewal at any time before each 'anniversary' date without question or penalty.