3 ASX stocks that soared more than 10 per cent yesterday


The S&P/ ASX 200 Index (Index: ^AXJO) (ASX: XJO) rose 34.5 points yesterday to close at 4,396.6, a rise of 0.8 per cent, thanks to a strong rise on Wall Street overnight. Some companies decided to chart their own course with the three companies below moving by more than 10 per cent.

Cash Converters International Ltd (ASX: CCV) jumped  by 10.4%, to close at $0.585, most likely on the back of revisions to reform laws on the payday lending industry. Cash Converters is one of a number of companies that offers small, short term loans usually secured against the customer’s next pay cheque. The Federal government has doubled the cap on fees that lenders can charge from 10 per cent of the loan, to 20 per cent on loans under $2,000. Consumer advocates are up in arms over the change, but it appears to be good news for Cash Converters’ shareholders.

My Net Fone Limited (ASX: MNF) is a micro cap stock, with a market capital of just $20.3m – until yesterday that was, when it jumped 17.3% from $0.375 to $0.44. MNF’s market cap is now over $24m. The catalyst was most likely an article on a popular investing blog site, suggesting the company looks cheap given the outlook for its industry and potential growth of the company.

My Net Fone, which provides Internet based voice (VOIP), data and video services across Australia, New Zealand and parts of Asia, and owns Symbio, which is Australia’s largest Voice over Internet Protocol (VOIP) provider, upgraded its net profit after tax guidance for the 2012 financial year to be in the range of $2.75m to $3m. Should My Net Fone hit that target, it will represent a 173% rise over the previous year, and could be worthy of further research.

Altium Limited (ASX: ALU) jumped 25%, to $0.40. This small company with a market cap of just $41m, develops and markets a range of computer software for the design of electronic components.

In 2011, the company had revenues of over US$48m, but reported a loss for the year, mainly due to the strong Australian dollar, which increased expenses by over $US5m. According to the company, 2012 and beyond won’t have the same exchange rate issues, as it is moving away from A$ expensing and relocating some activities to China. The company recently reported its 3rd quarter results, with revenues increasing 15% over the prior corresponding period and sales increasing by more than 20% in all regions. Altium could be a stock to watch.

Other notable movers

G8 Education Limited (ASX: GEM) was up another 6 per cent yesterday, but it has plenty of risks, as I outlined in this article last week. Newsat Limited (ASX: NWT) jumped 5 per cent to $0.725, steadily rising 15 per cent since 24th April, when it announced it had secured a US$13m satellite contract. Newsat could be a stock to watch, as Australia’s only pure satellite communications company.

The ASX is already on the move in 2012, and Goldman Sachs experts recently said they reckon S&P/ASX 200 could top 5,000 next year. Read This Before The Coming Market Rally is a must-read for investors who don’t want to miss out on the party. Click here now to request your free copy, before it’s too late.

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Motley Fool contributor Mike King doesn’t own shares in any companies mentioned. Take Stock is The Motley Fool Australia’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article, authorised by Bruce Jackson, contains general investment advice only (under AFSL 400691).

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