Who would've thought it?
After spending 99% of the day in the red, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) managed to surge at the close and finish flat at 5,904.2 led by gains in the big supermarket retailers and insurers.
Here's why these four stocks managed to soar today…
Two data security/encryption firms rocketed up today, Covata Ltd (ASX: CVT) and Senetas Corporation Limited (ASX: SEN). Covata gained 21% to 29 cents while Senetas added 13.3% to 9.4 cents. But the gains may be short-lived. Neither company released any information yesterday, but Senetas has been spruiked by an investing service (via email for free), which may be the reason why shares have shot up in both companies today.
Despite that, as data security becomes ever more important, it's likely the companies offering security technologies will be in big demand. Senetas is already profitable and is forecasting strong growth this year while Covata is a recent back-door listing, so we don't have much financial information to go on.
Genetic Technologies Limited (ASX: GTG) gained 16.3% to 5 cents, continuing the company's rollercoaster ride in the past few months. Since early January, Genetic Tech shares are up 188%, but down 42% since Feb 19, including today's rise. Clearly the market doesn't know how to value the unprofitable company, which specialises in DNA testing, including those addressing various aspects of cancer development, progression and management. Where the share price goes next is anybody's guess.
Cynata Therapeutics Ltd (ASX: CYP) also soared 16.3%, closing at $1.355. Cynata specialises in stem cell and regenerative medicine and today announced that CEO Dr Ross Macdonald would be presenting a company overview and holding one-on-one meetings with institutional investors at the annual ASX Spotlight conference in New York. If Mr Macdonald can win large US investors over, Cynata could see those investors keen to invest in the company.
