The S&P / ASX 300 Index (Index: ^AXKO) (ASX: XKO) finished at 4,148.6 points, a rise of 1.6% last week, although the index is still down 6.5% for the last 52 weeks, including dividends. With continued ongoing uncertainty in global markets, last week's rise could be a dead-cat bounce (which is defined as a temporary recovery from a prolonged decline).
These three stocks trounced the market, rising more than 20%.
Silex Systems Limited (ASX: SLX) rocketed up 35.9% to $4.35. Silex is a company with two separate businesses. Both halves appear to be going gangbusters with its laser uranium enrichment business recently announcing that a company part-owned by General Electric may soon receive a licence to construct and operate a commercial SILEX laser uranium enrichment plant in the US. Silex's solar panel business recently announced plans to construct a 1 Mega-watt solar power station in Saudi Arabia. Perhaps no surprise then that the company's share rose $1.15 in the last week and also hit a 52-week high.
Papillon Resources Limited (ASX: PIR) spiked 24.6%, 24 cents to $1.215, after the gold explorer announced that it had found a 3.14 million gold ounces deposit in Mail, West Africa. Given the company has only drilled a relatively small area of 2 kilometres, potential exists for the resource to grow much larger. However, potential and commercialising the project are two different things, and the company has a long way to go before it starts reporting gold revenues, and a profit.
Alkane Resources Limited (ASX: ALK) shot up 20.9% to 95.5 cents, a 16.5 cent rise. Alkane is exploring and mining for gold and other minerals and metals. Last week the company announced that it had discovered extensive rare earth minerals within its Dubbo Zirconia Project, in New South Wales. With China producing 95% of the world's rare earths, and limiting export of the minerals, miners and explorers are in a frantic rush to discover and start up non-Chinese rare earths projects.
Foolish Takeaway
Potential profits can drive share prices sky high, but if that potential evaporates, shareholders can be left with very little. Be careful Fools; there is a difference between growth potential and speculation.
If you're in the market for some high yielding ASX shares, look no further than our "Secure Your Future with 3 Rock-Solid Dividend Stocks" report. In this free report, we've put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.
More reading
- Why you should avoid this popular stock
- Is Woolies heading for a forced breakup?
- Charlie Munger's 30 best zingers of all time
Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. The Motley Fool's purpose is to help the world invest, better. Take Stock is The Motley Fool'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 contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
