The volatility continues in the ASX Market, and despite the day-to-day moves, for the week the S&P/ASX200 Index hardly moved, falling just 4.4 points, from 4,366.5 to close at 4,362.1 on Friday 27th April 2012.
Despite the flat market, four stocks managed to jump more than 15 per cent for the week.
A takeover offer helps
PMP Limited (ASX: PMP) more than doubled, jumping 106.7 per cent to close at $0.62 cents, after receiving a takeover offer from an unnamed suitor. The announcement was made with very little details apart from the offer range of between $0.68 to $0.78 cents.
The lack of details about the offer is likely to be the cause of the stock still trading 6 cents – around 10 per cent – below the bottom of the offer range. Private Equity firms are the most likely bidders for the commercial printing firm. PMP’s chairman, Ian Fraser is no stranger to takeover offers, with this being his 11th takeover brawl.
PMP is forecasting full year earnings before interest and taxes (EBIT) of between $30 to $33m, an fall on 2011’s result of $58.7m (before significant items).
Heart to Heart
Heartware International Inc (ASX: HIN) moved by 15.5% to close at $2.05, after the US Food and Drug Administration (FDA) voted 9 to 2 that the benefits outweigh the risks for the use of the Heartware Ventricular Assist System. Heartware makes small heart pumps for the treatment of advanced heart failure.
The vote is an important step in gaining FDA approval of the Ventricular Assist System in the United States. Heart transplantation is the only current curative therapy for heart failure, and there are less than 4,000 donor hearts available globally each year. Heartware’s system offers an alternative to a full heart transplant.
Another takeover offer
Brockman Resources Limited (ASX: BRM) moved 17.65%, 36 cents to close at $2.40. The iron ore explorer and developer received a takeover offer from Wah Nam International (HKG: 0159), in December 2011. Wah Nam has increased its shareholding to over 80 per cent, and has extended its offer until 31st May 2012.
The offer for each Brockman share is for A$1.50 in cash plus 18 Wah Nam Shares. At current exchange rates, the offer is worth approximately A$2.56.
EU marketing approval
pSivida Corporation (ASX: PVA) moved 29.7%, up 55 cents to $2.40. pSivida announced on the 26th April 2012 that it had received marketing authorisation for its Iluvien product from the Austrian Agency for Health Food and Safety and expects Iluvien to be available to Austrian patients by the end of 2012.
This announcement marks the first European Union approval for pSivida’s Iluvien product, which is designed for treatment of back-of-the-eye diseases associated with diabetes.
The company’s share price has doubled since late February 2012, on the back of the expected EU approval. pSivida expects additional marketing authorisations in the coming months, which should further boost the share price.
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