The S&P / ASX 200 (Index: ^AXJO) (ASX: XJO) appears to have run out of steam this afternoon as investors remain cautious ahead of February's all-important half-year results season. However there are several stocks thrashing the market with potential for big long-term returns. Let's take a look at what's causing buyers to pile into these businesses today.
Santos Ltd (ASX: STO) is a major oil and liquefied natural gas producer which has seen its share price almost cut in half over the last six months as the oil price rout hits hard. The stock has lifted around 1.5% today though to $7.65 as Brent crude oil futures rebound to trade for close to US$50 per barrel. If oil has indeed found a bottom so may Santos' share price, with better days ahead for investors.
Oil Search Limited (ASX: OSH) is another victim of the oil price decline, although the stock is up more than 5% today. This is probably due to the news that Exxon Mobil Corporation (NYSE: XOM) and the PNG government have signed an agreement to boost LNG production in the country.
Oil Search is another energy business that could be a good buy if you take the view that energy prices will eventually settle higher once the supply side dynamics have been re-ordered as necessary.
Nanosonics Ltd. (ASX: NAN) is a junior healthcare equipment business that mainly supplies sterilisation equipment to hospitals worldwide. The group has already seen success in selling its equipment to leading hospitals in the US and Europe, with investors warming to the prospect of more sales success.
The stock is up more than 6% to $1.30 today, and a potentially huge addressable market for sales of it medical equipment mean it looks one for the future.
Acrux Limited (ASX: ACR) has today lifted 3.27% to $1.58 and is up around 23% in 2015 alone. The testosterone therapy manufacturer should soon report the latest quarterly sales numbers of its key Axiron product for the fourth quarter of 2014.
Heavily shorted, the price of Acrux moves in mysterious ways. A sudden rise in price over the last two weeks suggests investors are expecting some positive numbers, with shorts forced into closing positions. It's also notable that the stock was sold off prior to the group announcing disappointing sales numbers for the third quarter of 2014, so perhaps the sixth sense of some investors has it right again.
