Today was another buoyant day for the S&P/ASX 200 (INDEXASX: ^AXJO) (ASX: XJO) with our index rising 0.9% to 4,887 points, again as a result of a strong lead from overseas markets.
These four shares considerably outperformed the market today, and here's why:
Greencross Limited (ASX: GXL) rose 5% to $6.89 after the pet retailer and vet operator released its interim results to the market this morning. A strong set of results combined with a third takeover bid recently at an increased price of $6.75 per share seemed sure to push share prices higher, and that's exactly what happened. Investors should be cautious that there is no certainty a higher bid will materialise after Greencross management knocked back the latest offer. In the meantime, shareholders can enjoy rising dividends and earnings from the petcare provider.
Greencross shares are down 18% in the past 12 months.
Monadelphous Group Limited (ASX: MND) gained 3% to $5.83 after its interim results were released to the market this morning. The share price reaction seems a little surprising given that Monadelphous recorded a 30% decline in revenues and a 38% decline in profits for the past six months. Possibly results weren't as bad as investors were expecting, or the huge interim dividend on offer attracted the bargain hunters.
Monadelphous shares are down 39% in the past 12 months.
Mesoblast limited (ASX: MSB) shares skyrocketed 17% to $1.36 after the company announced positive progress with its Phase 2 rheumatoid arthritis trials. A fair number of patients experienced improvements in the 12-week program, although the trial's primary focus was safety, and not efficacy. Mesoblast shares have been in the news recently after Credit Suisse in the US set a price target significantly higher than today's prices, and declared that the stock has blockbuster potential. However, Mesoblast remains unprofitable and is burning a lot of cash in its quest to develop saleable treatments.
Mesoblast shares are down 66% in the past 12 months.
Fortescue Metals Group Limited (ASX: FMG) jumped 11% to $1.90 today after iron ore prices rose above US$46 per tonne overnight. However, investors should be cautious that current demand is not enough to sustain higher prices, and low smelter utilisation rates in China should be an item of great concern for shareholders of iron ore miners. Fortescue has been a regular feature in the stocks moving up/down articles recently because of its exposure to the volatile iron ore price, and shareholders should expect continued volatility going forwards.
Fortescue shares are down 29% in the past 12 months.
