It hasn't been the best start to the week for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). In afternoon trade the index is down 1% to 5,656 points.
Despite the index dropping sharply lower, four shares in particular have managed to defy the market and put on strong gains today. Here's why:
Grange Resources Limited (ASX: GRR) shares have jumped 5% to 22 cents despite there being no news out of the magnetite producer. Its share price has now gained a remarkable 60% year-to-date, with a good portion of this coming after last week's quarterly update. That update revealed a 13% quarter-on-quarter jump in the average price received for its iron ore pellets.
Infomedia Limited (ASX: IFM) shares have climbed 7% to 73.2 cents after a report in the Australian Financial Review claimed that an unnamed private equity firm had shown an interest in acquiring the software-as-a-service company. Its shares won't come cheap though. Currently they are changing hands at 22x trailing earnings, which I believe is expensive considering the company's mixed performance of late.
Northern Star Resources Ltd (ASX: NST) shares are up 3% to $3.86. Today's gain is likely to be attributable to a research note out of Morgan Stanley which rated the gold miner's shares as 'overweight' with a $5.30 price target. Although I think it is one of the best gold miners on the ASX, I expect the gold price to sink lower this year. This could weigh heavily on Northern Star's share price.
Warrnambool Cheese & Butter Factory Co. (ASX: WCB) shares have rocketed 24% to $8.78 after its majority shareholder made an $8.85 per share cash offer to buy the remaining shares outstanding. Saputo Dairy Australia has already received Australian Foreign Investment Review Board approval and currently owns 88% of the company's shares. As a result the takeover looks to be a formality now.
