The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) has continued its topsy turvy week rising 1.1%, ending at 4,794.7 after a big fall yesterday. Commodities prices, including oil, gold and iron ore all traded higher overnight, despite European sovereign issues making headlines again. This time its Portugal's political instabilities threatening to throw global markets into chaos again.
Here's why these three stocks are hot right now.
Billabong International (ASX:BBG) surged 15.4% higher to close at 22.5 cents, on news that all of the surf wear maker's original bankers had jumped ship, and its debts were now in the hands of opportunistic hedge funds. Billabong is currently in discussions with a number of interested parties in relation to a refinance of its debts and potential asset sales. The company has already confirmed that it is trying to find a buyer for its Canadian West 49 retail operations. It seems the hedge funds see some upside in Billabong, which may give management some breathing space to turn around the struggling retailer.
Linc Energy Limited (ASX:LNC) rallied 14.8% to finish at $1.01, as rising oil prices lifted most oil and gas stocks. Unrest in Egypt pushed the price of oil to a 14-month high overnight, after the military removed the incumbent president. Egypt is not a major crude oil exporter, but sits on the key oil highway through the Suez Canal. Linc has several oil and gas resources, and is targeting production of 8,000 to 9,000 barrels of oil per day by the end of 2013. The company is also pursuing new technology to convert underground coal to gas, and gas to liquids.
Sirius Resources (ASX:SIR) added 13.9%, to close at $2.29, after dropping 58% since mid-March. The company appears to have found a substantial nickel discovery in Western Australia, dubbed Nova, and then in late February another substantial discovery, named Bollinger, was made. The company says its deposits are similar to the giant Canadian deposits, which could propel Sirius into the ranks of Australia's largest nickel miners. Veteran geologists are apparently in awe of Sirius's Nova discovery, amid expectations that Nova will become a great mine.
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- Billabong: The worst performing stock
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- 10 of the ASX's best dividend plays
Motley Fool writer/analyst Mike King owns shares in Billabong and Sirius.
