MENU

ASX Hot stocks: Mirabela, Silver Lake and Atlas Iron

The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) has ended a five-day losing streak, rising 0.2% to 4,970.7. The Australian dollar was steady against the US dollar, and may have contributed to the positive market, after sliding for several days. Looking to the sectors, Information technology was the best performer rising 1.4%, while the Gold index was the worst, losing 0.5%.

Here’s why these three stocks are hot right now.

Mirabela Nickel Limited (ASX: MBN) was up 25.8%, closing at 19.5 cents. Mirabela is currently trading at less than a third of its 52-week high of 60 cents, as nickel prices have slumped. The company’s main asset is the 100% owned Santa Rita nickel mine in Brazil, but production has been falling over the past three quarters, and the company is around 2,000 tonnes of nickel behind budget. With net debt of US$323 million at the end of March 2013, Mirabela looks like a risky play on nickel, and probably best left to traders.

Silver Lake Resources (ASX: SLR) rose 7.4%, finishing at 80 cents. Gold prices rose overnight, lending support to ASX listed gold miners. Silver Lake has been heavily sold off recently, losing 64% in the past three months, as investors fretted over the future of gold. Today’s rise may also have been influenced by company directors wading into the market and buying up shares. As the saying goes ‘directors sell shares for multiple reasons, but there’s generally only one reason why they buy’.

Atlas Iron Limited (ASX: AGO) was up 2.7% to 77.5 cents, despite the iron ore price falling to US$120.30 a tonne overnight. The company is in talks with Fortescue Metals Group (ASX: FMG) to use Fortescue’s rail infrastructure to get its ore to port. Should Atlas be unable to arrange an agreement, the company could be facing the prospect of spending billions in capital expenditure to build its own railway and associated infrastructure. While it could do so in conjunction with a partner, it would likely be a major setback for the company.

In the market for high yielding ASX shares? Get “3 Stocks for the Great Dividend Boom” in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading


Motley Fool writer/analyst Mike King owns shares in Silver Lake.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.