The S&P/ASX 200 (Index: ^AJXO) (ASX: XJO) has edged marginally higher in trade today with several businesses rocketing as the result of improved sentiment or other positive market updates.
Let's take a look at what may be behind the buying support for some of today's big market movers.
3P Learning Ltd (ASX: 3PL) shares are up around 10% today on news that the company is to be promoted to the S&P/ASX 300 (Index: ^AJXO) (ASX: XKO) index on March 18. The stock's elevation to a larger index will bring it onto the radar of cash-rich fund managers, while the challenge for 3P Learning is to keep growing sales of its online education software.
Blackmores Limited (ASX: BKL) shares are up 4.3% today despite the vitamins manufacturer releasing no news to the market. The stock has been on a rocketing upward trajectory thanks largely to the fact that China sales (direct and indirect) are now reported to be 40% of group revenues with a strong outlook based on a huge addressable market. China has long been a market associated with alternative medicines of a dubious worth and it comes as no surprise that the expertly marketed Blackmores retains excellent sales growth prospects in the country.
Surfstitch Group Ltd (ASX: SRF) is the e-commerce sports wear and video content business that yesterday shocked the market by announcing the resignation of its chief executive officer. The stock has climbed on the news as investors bet on a takeover being received as the now departed chief executive is reported to be preparing a full takeover offer with the backing of a US private equity group. Selling for $1.39 the stock is likely to remain volatile and is probably best watched from the sidelines.
Collins Foods Ltd (ASX: CKF) is the Kentucky Fried Chicken franchisor that also earned a promotion into the S&P/ASX 300 (Index: ^AJXO) (ASX: XKO) index today after nearly doubling in market value over the course of the past year. The company has also made some big strategic changes recently by abandoning investment plans for its under-performing Sizzler Australia stores, while its KFC stores deliver strong same store sales growth with plenty of opportunity for store expansion. This business is starting to hit its straps and looks one for the top of the watch list.
