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Here’s why these 5 ASX companies are skyrocketing today

The Australian share market is once again trading in the red today, reversing most of the gains recognised in Thursday’s session. The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has fallen close to 0.7%, which comes even though the Dow Jones and NASDAQ indices both rose 1.5% and 0.9% overnight.

However, these five stocks have managed to significantly outperform the bourse. Here’s why…

iiNet Limited (ASX: IIN) and TPG Telecom Ltd (ASX: TPM) have both skyrocketed after the latter offered to buy iiNet for $1.4 billion. While the timing of the deal makes sense (with iiNet’s shares down 20% since December), there are also strong synergies that will be recognised from the deal which explains the market’s positive reaction. iiNet has jumped 27.2% to $8.66 while TPG Telecom surged 18.2% to $9.15.

XERO FPO NZ (ASX: XRO) jumped 5.5% to a new eight-month high of $24.72 after the New Zealand-based cloud accounting software provider confirmed that the investment in Xero by Accel Partners and Matrix Capital Management was complete. The company issued a total of 7,359,069 ordinary shares to the pair, raising more than US$110 million in the process.

Admedus Ltd (ASX: AHZ) has risen 8.7% to 10 cents, complementing yesterday’s 12.2% jump. In an announcement to the market on Thursday, the junior biotechnology company said that its regenerative cardiovascular tissue technology, CardioCel, had officially launched in Hong Kong. The technology is now used in 60 centres globally, although investors remain concerned about the company’s lacklustre sales growth.

Fortescue Metals Group Limited (ASX: FMG) jumped 1.6% after the iron ore price staged a minor recovery overnight. Despite a strong start to the year, the iron ore price has since slipped to a six-year low around US$57.50 a tonne, sparking fears that Fortescue may struggle to remain profitable and repay its debts. The miner has fallen a massive 66% since April last year.

5 stocks under $5

We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.

And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

*Extreme Opportunities returns as of June 5th 2020

Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, 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.  This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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