The S&P / ASX 200 (Index: ^AXJO) (ASX: XJO) lifted around 0.6% in a late-afternoon rally probably inspired by strong Asian markets. Japanese shares hit 15-year highs in the late afternoon, while the famous Hang Seng Index of Hong Kong also hit seven-year highs in early trade.
Several local stocks also put on weight today and it's worth considering whether there may be more gains to come.
Martin Aircraft Company Ltd (ASX: MJP) is a New Zealand-based jetpack developer that soared 8% to $1.01 despite releasing no specific news to the market. The company is hoping to commercialise piloted jetpacks for use by emergency services as first responders to crime or accident scenes.
It is also developing unmanned aerial vehicles, which may prove useful for military purposes for example. It's likely to face some strong competition though and this is a story I would suggest watching from the sidelines.
Myer Holdings Ltd (ASX: MYR) has jumped 8.8% to $1.42 today despite releasing no news to the market. Rumours of a takeover bid have been swirling with private equity investors perhaps eyeing up opportunistic bids for the struggling retailer. The stock is also one of the ASX's most shorted, which means traders may look to close their positions at the first hint of a sustained rebound in prices that are around multi-year lows.
Fortescue Metals Group Limited (ASX: FMG) has jumped 8.1% today after iron ore prices lifted overnight and speculation mounted that the Chinese government may act to stimulate its flagging economy. Fortescue is also another prime target of short sellers who are likely to close positions and buy back the stock at the first hint of the prospect of a sustainable price rebound.
Sirtex Medical Limited (ASX: SRX) is up 3% to $21.66 today as investors try to make sense of the recently announced results of its SIRFLOX study. Brokers have varying price targets on the stock, including Moelis which has a target of $31.22 based on the belief Sirtex's radioactive therapy still has the opportunity to become a first line option in the treatment of liver cancer.
The next important date for this business is the end of May when further details around the SIRFLOX study will be released, including the Hazard ratio which is important in determining a treatment's effectiveness. Investing in the biotech sector is one option for investors, but it's good to spread the risk and The Motley Fool has identified two ASX stocks so good they would even attract legendary stock picker Warren Buffett….
