On a day where the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) rose by as much as 1%, Veda Group Ltd (ASX: VED) managed to climb a remarkable 10c or 5.4% with shares now trading hands for $1.95.
Today's jump comes as great news for shareholders (including myself) who have watched their stock fall by nearly 10% over the last two weeks.
Although the company hasn't released any news which would specifically explain the movement, here are three reasons why the stock might have popped today…
- While Veda has fallen 10% in the last two weeks, it is currently sitting a massive 23.5% below its 52-week high of $2.55. Investors may be taking the opportunity to buy shares at a cheaper price.
- As the market trends higher, it is also possible that investors are looking for more resilient stocks in case of a pullback. Having grown revenue every year since FY1993, Veda definitely fits the description of 'resilient'.
- The Australian Bureau of Statistics today released headline inflation figures which will likely see the Reserve Bank keep interest rates on hold at 2.5%. This could certainly see more consumers and businesses apply for credit which will benefit Veda Group.
An even better bet than Veda Group
Having bought my stake in Veda at $2.09 a share, I am currently sitting 6.7% in the red on my investment. However, I am very confident of the company's long-term potential and will continue to hold my shares well into the future.
