The S&P/ASX 200 (INDEXASX: XJO) lost 0.7% of its value to 5170 points today, as lower oil prices weighed on the market. These four stocks managed to buck the trend, however:
Qantas Airways Limited (ASX: QAN) saw its share price gain 5.4% to $3.88 today on the back of falling oil prices. Lower oil prices result in substantially lower costs for air travel, which is great for Qantas' profits and has been key to the company's turnaround. However, much of the benefit of falling oil prices has already been felt, and with a number of other headwinds including competition and a high debt load, Qantas is not a strong candidate for a long-term investment.
Simply put, there are many other stocks out there likely to generate greater returns on capital over time.
Speedcast International Ltd (ASX: SDA) shares gained 4.8% to $4.34 today, after falling from $5 back in October. Speedcast shares are likely to continue rising in the near future thanks to the company's inclusion in the ASX 200 index and the increased investor awareness that comes along with that. Recent acquisitions are also likely to generate strong organic growth in coming years and Speedcast has a lot to offer investors. However, today's prices are a little too expensive for my liking.
Spotless Group Holdings Ltd (ASX: SPO) rose 6.1% to $1.13 today after shedding 13.6% yesterday. Often after a massive crash – such as the type experienced by Spotless recently – a company's share price will temporarily rebound as bargain hunters look to make a quick buck.
That doesn't mean shares won't continue to fall though, and successive major falls at Slater & Gordon Limited (ASX: SGH) have shown this is quite a risky strategy. Spotless does look oversold however, as investors worry the company could turn out like Dick Smith Holdings Ltd (ASX: DSH), which lost 48% of its value in the past five days.
Sirtex Medical Limited (ASX: SRX) shares gained 4.4% to $38.66 in what was a stark turnaround from its monstrous 50% crash back in April. Slater & Gordon's woes have also helped Sirtex, with the former being replaced by the latter in the S&P/ASX 100 (INDEXASX: XTO) index earlier this week.
Sirtex has a highly attractive product and a long growth runway ahead of it, especially if it can develop new products and adapt its existing SIR-spheres to new purposes. It does not look like an attractive investment today though, trading as it does on 53x its 2015 earnings.
