The S&P / ASX 200 (Index: ^AXJO) (ASX: XJO) has pared back some of this morning's losses in afternoon trade as investors remain cautious over the short-term outlook.
However, there are four stocks storming higher thanks to some improved sentiment and bargain-hunting bravado. Let's take a look at these stocks and see if there's potential for them to head higher in the weeks ahead.
Billabong International Limited (ASX: BBG) has climbed 3.5 cents or more than 5% to 69 cents as investors start to believe that its turnaround strategy is gaining traction. The surfwear business was perilously close to a total wipeout after posting full year losses totalling more than $1 billion over the last two financial years.
Its main problem has been disastrous performance in North America and a brand image falling out of fashion amongst the key youth market. However, it still has potential to deliver if able to execute its turnaround strategy.
Perth-based telco iiNet Limited (ASX: IIN) is one of a number of junior internet and telecommunication businesses to receive support this week with its shares climbing nearly 2% to $8.16 in afternoon trade.
It's attempting to leverage off the opportunity to provide high-speed National Broadband Network internet services to households and businesses across the country. Organic growth is expected to come through effective marketing and increased brand awareness and the current valuation seems reasonable given its outlook.
Mesoblast limited (ASX: MSB) is a regenerative medicine business with some mouth-watering potential but little in the way of actual delivery so far. Today shares are up 22 cents or 5.70% to $4.08 as investors weigh up how close it actually is to bringing products to market with revenue potential.
Patience looks a virtue if you own this stock and year to date it has dropped around 30% as the required investor patience starts to run thin. However, with a market value greater than $1.2 billion it certainly seems many investors have great expectations and the business says it is moving closer to being able to sell its products on a commercial basis.
Myer Holdings Ltd (ASX: MYR) has soared 5 cents or 2.75% to $1.87 today. It's not dissimilar to Billabong as another traditional retailer sailing into the headwinds of a fragmenting market, online competition, and changing consumer fashions.
Myer is rebounding off 52-week lows after posting some disappointing full year results recently and bargain-hunting investors should approach this business with caution as the long-term outlook remains tough in my opinion.
