Whilst December might be a month to forget for shareholders and the management teams of Bellamy's Australia Ltd (ASX: BAL) and Sirtex Medical Limited (ASX: SRX), not all companies are faring so badly.
In fact, the shares of these three companies have had a fantastic time so far in December. Here's why:
Galaxy Resources Limited (ASX: GXY)
The shares of this leading lithium miner are up a massive 19% in December. Its shares went on a tear after the company announced that it has signed binding agreements with its existing Chinese customers for 120,000 tonnes of lithium concentrate for delivery in 2017. Galaxy will receive US$905 per tonne for 6% lithium oxide. I believe this announcement goes to show that demand for lithium is as strong as ever. Galaxy expects to produce 160,000 tonnes of lithium carbonate in 2017, with the remaining 40,000 tonnes being used to satisfy outstanding contracts.
Nextdc Ltd (ASX: NXT)
With another strong gain again today this data centre operator's shares have now risen almost 12% so far this month. The sharp rise in its share price came following a number of broker upgrades. A research note out of Citi last week revealed that its analysts believe its shares were oversold following concerns over Singapore-based rival AirTrunk arriving on Australian shores. They slapped a buy rating on its shares due to the belief that the explosive industry demand will provide NextDC with sufficient profit growth even if competition heats up.
Syrah Resources Ltd (ASX: SYR)
This graphite producer has climbed over 12% this month thanks to recent rumours of a takeover approach from South32 Ltd (ASX: S32). As I said previously, I can see the takeover appeal for a diversified miner such as South32. If demand for graphite for use in the anode of lithium ion batteries grows as strongly as predicted, Syrah's Balama project could prove to be a valuable asset. After significant delays, production at Balama is finally expected to commence in the second quarter of 2017.
