The ASX is sinking but these 5 stocks are soaring

S&P/ASX 300 sinks 1.5%, but these 5 stocks are going against the trend

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 300 (INDEXASX: XKO) (ASX: XKO) has tumbled 1.5% in afternoon trading, following losses on offshore markets overnight, and disappointing results from a number of large companies.

Medical Developments International Ltd (ASX: MVP) has soared 15% to $2.45 after the company announced that it had received approval for the sale of Penthrox in Europe.  MDI says it expects its licencing and distribution partner Galen Limited to commence sales within the next three months, and will receive a milestone payment of $850,000, plus further sales based payments to follow.

St Barbara Ltd (ASX: SBM) continues to rise, gaining a further 10.9% today to 56 cents. We covered the gold miner in a number of articles recently, including here and here. In both articles, we highlighted the low-cost nature of St Barbara's mines, which should see the company post some decent profit results this financial year at least. St Barbara had been heavily sold off over the last two years, perhaps unnecessarily.

Sundance Energy Australia Ltd (ASX: SEA) has jumped 9.8% to 67.5 cents. Oil prices are slowly recovering since their 55% fall beginning in June 2014, and are currently trading at around US$68 a barrel. We may not see US$100 per barrel prices anytime soon, and Sundance looks well placed to participate in any further recoveries. Sundance has 26 million barrels of proven reserves, 65%$ of which is oil, remainder gas and other liquids. In the last quarter, Sundance produced nearly 9,600 barrels of oil equivalent per day (boepd) well above its forecast for the full year of around 8,000 boepd.

TPG Telecom Ltd (ASX: TPM) has seen its shares rise 4.3% to $9.17. Takeover target iiNet Limited (ASX: IIN) today recommended shareholders accept TPG's upgraded offer, which is fairly similar to the offer by fellow telecoms company M2 Group Ltd (ASX: MTU). TPG is offering a combination of shares, cash and a dividend, valuing iiNet shares at around $9.55 each – including 75 cents in dividends.

Fortescue Metals Group Limited (ASX: FMG) shares are up 6.5% at $2.62, after spot iron ore prices gained 2% overnight. As many of you will already know, Fortescue is utterly dependent on where the iron ore price goes, and at US$58.70 per tonne is likely to be making a profit. The problem the company faces though is how it is going to repay it huge debt load. So far the company has managed to kick the debt due dates further out to 2018, 2019 and beyond, but if the iron ore price falls back and stays low, investors' doubts will be renewed.

Motley Fool contributor Mike King owns shares in TPG Telecom and M2 Group. You can follow Mike on Twitter @TMFKinga The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »