On a day when the RBA turned party pooper for the S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO), several businesses danced higher regardless. However, they are coming off recent lows, which means investors need to consider if the stocks offer genuine potential or are likely to offer a hangover in the year ahead. Let's take a look at some of these gainers.
Ainsworth Game Technology Limited (ASX: AGI) has climbed 13 cents or more than 5% to $2.60 today despite releasing no specific news to the market. The pokie machine manufacturer recently posted a net profit down 3% on the prior corresponding period, as its domestic revenues took a tumble.
The business hopes international expansion can be a growth driver and its intellectual property, product and manufacturing expertise provide an advantage in making machines likely to impress gaming venues. The company forecast a better second half and is probably seeing buying from bargain-hunting investors.
Donaco International Ltd (ASX: DNA) has climbed 2 cents or 3% to 68 cents today as it rebounds from recent 52-week lows as investor confidence in its business model begins to moderate.
The business runs a casino and leisure resort in Vietnam and recently announced a capital raising to fund the US$360 million acquisition of The Star Vegas resort in Cambodia. That seems a fair old sum for a Cambodian casino and given the business model this looks a stock investors might want to avoid.
Ten Network Holdings Limited (ASX: TEN) is another business that has been struggling recently as it faces competition for viewers from multiple new digital platforms. Viewers of the shows may rightly conclude the channel's being run on a tight budget as cost controls are implemented in the wake of falling advertising revenues.
The channel posted a net loss of $168 million in financial year 2014, but did jump 4.3% in trade today to sell for 24 cents. The best hope for investors may be a takeover bid, but given the debt pile and tough outlook any buyer would demand a keen price.
Of these three investors may be best off looking at Ainsworth, but it still looks a gamble compared to The Motley Fool's favourite growth stock for 2015…