The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) rose 38.7 points, or 1.0% to close at 4,068 yesterday, boosted by polls over the weekend which show pro-austerity parties in Greece were gaining popularity. These three stocks managed to do much better than the market, rising 14% or more.
Lynas Corporation Limited (ASX: LYC) climbed 17.9% to $1.055, apparently on speculation that the Malaysian government will give the go ahead for Lynas’ controversial rare earths processing plant within two weeks. Protesters have been arguing against the plant, which is expected to produce radioactive waste during the processing of rare earths ore into rare earth oxides.
Lynas was one of the top ten most shorted stocks (speculators take short positions, hoping for the share price to fall) on the ASX, so it’s likely the share price was also driven up by short-sellers covering their positions (buying back the shares to close the trade – which pushes the price up).
Linc Energy Ltd (ASX: LNC) jumped 15.6% to close at $0.705. The diversified energy company, with interests in coal, oil and gas has seen its share price yo-yo over the last couple of weeks, as investors chase the share price up and down. With the stock falling from over $3 a year ago, Mr Market may have over-reacted, and we might be seeing buyers looking for a bargain.
Dart Energy Ltd (ASX: DTE) bounced 14.3% to close at 20c, after hitting an all-time low of 15.5 cents last week. The company is focused on the development of coal seam gas and coal bed methane projects in Australia and Asia. Gas is the hot sector (sorry!) now, driven by uncertainty over the carbon tax, and the implications for dirtier sources of energy such as brown coal. Australia is also blessed with large reserves of gas from many sources which may propel the country long after the resources boom has ended…whenever that may be.
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Motley Fool contributor Mike King doesn’t own shares in any companies mentioned. The Motley Fool‘s purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.