The S&P/ASX 300 (INDEXASX: XKO) (ASX: XKO) has tumbled 1.5% in afternoon trading, following losses on offshore markets overnight, and disappointing results from a number of large companies.
Medical Developments International Ltd (ASX: MVP) has soared 15% to $2.45 after the company announced that it had received approval for the sale of Penthrox in Europe. MDI says it expects its licencing and distribution partner Galen Limited to commence sales within the next three months, and will receive a milestone payment of $850,000, plus further sales based payments to follow.
St Barbara Ltd (ASX: SBM) continues to rise, gaining a further 10.9% today to 56 cents. We covered the gold miner in a number of articles recently, including here and here. In both articles, we highlighted the low-cost nature of St Barbara's mines, which should see the company post some decent profit results this financial year at least. St Barbara had been heavily sold off over the last two years, perhaps unnecessarily.
Sundance Energy Australia Ltd (ASX: SEA) has jumped 9.8% to 67.5 cents. Oil prices are slowly recovering since their 55% fall beginning in June 2014, and are currently trading at around US$68 a barrel. We may not see US$100 per barrel prices anytime soon, and Sundance looks well placed to participate in any further recoveries. Sundance has 26 million barrels of proven reserves, 65%$ of which is oil, remainder gas and other liquids. In the last quarter, Sundance produced nearly 9,600 barrels of oil equivalent per day (boepd) well above its forecast for the full year of around 8,000 boepd.
TPG Telecom Ltd (ASX: TPM) has seen its shares rise 4.3% to $9.17. Takeover target iiNet Limited (ASX: IIN) today recommended shareholders accept TPG's upgraded offer, which is fairly similar to the offer by fellow telecoms company M2 Group Ltd (ASX: MTU). TPG is offering a combination of shares, cash and a dividend, valuing iiNet shares at around $9.55 each – including 75 cents in dividends.
Fortescue Metals Group Limited (ASX: FMG) shares are up 6.5% at $2.62, after spot iron ore prices gained 2% overnight. As many of you will already know, Fortescue is utterly dependent on where the iron ore price goes, and at US$58.70 per tonne is likely to be making a profit. The problem the company faces though is how it is going to repay it huge debt load. So far the company has managed to kick the debt due dates further out to 2018, 2019 and beyond, but if the iron ore price falls back and stays low, investors' doubts will be renewed.
