The S&P / ASX 200 (Index: ^AXJO) (ASX: XJO) index is moderately higher in lunchtime trade with several stocks from inside and outside the index delivering big gains. Two of the three following businesses look to have some blockbuster potential, while the third is enjoying some strong tailwinds. Let's take a look at each one.
Bellamy's Australia Ltd (ASX: BAL) is an organic baby formula maker that has seen explosive sales growth recently thanks to strong consumer demand in part fuelled by sales into China. In its most recent half year, the Tasmania-based business posted 141% revenue growth and 137% profit growth.
The stock price has mirrored that growth by more than doubling in value over the past six months and is up 7.3% to $2.79 today. Investors are excited about its potential to win big in China and so far the business is outperforming expectations.
BTT Investment Management Ltd (ASX: BTT) has lifted 2.4% to $8.76 today and touched a record high in the process. The fund manger is part owned by Westpac Banking Corp (ASX: WBC) and will report its financial year 2015 first half results on 29 April.
Its funds management business has substantial overseas exposure and net FUM will grow in Australian dollar terms as the currency weakens against a basket of other currencies including the British pound. The business has also been expanding overseas recently and institutional business development and distribution success in the UK and globally is driving the share price strength. The business remains leveraged to global market movements, but if they remain supportive its outlook appears reasonable.
Sirtex Medical Limited (ASX: SRX) is an innovative cancer treatment business that has jumped around 5% to $36.20 despite releasing no specific news to the market. Buyers are likely speculating the results of the company's SIRFLOX clinical trials will be positive, a scenario which might translate into significantly higher revenues for the business.
The stock's meteoric rise over the last year has seen it more than double in value and this has attracted the attention of several large broking houses including Goldman Sachs and other big-hitting money managers. Several are reported to have positive views on the business which is likely lending support to the share price. Given the downside risk conservative investors would be advised to watch this story from the sidelines.
Sirtex is an exciting prospect, but smart investors know the key to out-sized returns is finding the Sirtex of tomorrow not today!
