Two of the biggest movers in the market today have pleasantly surprised investors with business developments far better than expected.
OrotonGroup Limited (ASX: ORL) leapt 15% in early trade after slipping 10% in the weeks leading up to its full year results which were released this morning.
Investors found a lot to like in revenue growth of 25% and NPAT attributable to members up 15.6%. This after some wondered if Oroton would successfully recover from the departure of marquee brand Ralph Lauren several months ago.
The proof is in the pudding, with very strong results defying the current subdued retail environment.
Even better, management expects that new stores combined with less discounting, a number of business refinements and supply chain improvements should deliver solid earnings growth again next year.
At the time of writing Oroton was up 12% at $4.10 after falling from an intra-day high of $4.30 earlier this morning.
Future days will tell if Oroton will continue to rise, however until then it's well done to management for converting its expertise into results for shareholders.
The second major riser today, AWE Ltd (ASX: AWE) shot up 16% to $1.95 after announcing an enormous onshore gas find in its Western Australian tenements.
Best estimates put the field at 290 billion cubic feet (bcf) of gas, with the find touted as possibly the largest onshore gas find in Western Australia since the 1960s.
Although more work is required to fully define the extent of the find, as a 50% operator alongside co-owner Origin Energy Ltd (ASX: ORG), AWE can expect a substantial increase in reserve life and production if the field is commercially viable.
It's no surprise then that its shares have hit 52-week highs, and if anything the company may be undervalued with further rises to come.
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