What a turnaround.
The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has closed up 2.7%, making up some of the monster plunge yesterday. Was it bargain hunters jumping into the market? Was it expectations of another rate cut by the RBA, or was it sharp moves higher by the US futures market?
Whatever the reason, those who sold out of the market yesterday on fear now look a bit silly.
Here’re 4 companies that surpassed even the market’s results…
Pacific Brands Limited (ASX: PBG) share price gained 15.6% to $0.44, after management said the turnaround was well underway and even promised to pay a dividend when it reports six month financials early next year. That was despite the company reporting a net loss of $97.7 million for the year to June 30, 2015. My colleague Brendon Lau covered the results in more detail here.
Capilano Honey Ltd (ASX: CZZ) share price rocketed up 11.5% to $17.40, perhaps driven by bargain hunters. Shares have dropped from $22.00 just a week ago, likely driven by profit taking and general market fear. Capilano reported its full year results on August 10 including a whopping 70% increase in profit compared to the previous year. Even at these prices, Capilano appears attractive.
South32 Ltd (ASX: S32) share price gained 8.9% to $1.53. The BHP Billiton Limited (ASX: BHP) spinoff was sold off heavily yesterday after reporting disappointing results to the market and closed at a low of $1.40. Shares fell 7.5%, but on a second look may not have been as bad as first thought. Underlying net profit rose 41% to US$575 million.
Fortescue Metals Group Limited (ASX: FMG) share price climbed 11% to $1.82, despite iron ore falling 5% to US$53.28 per tonne overnight. The miner saw its shares hammered yesterday and early this morning – dropping to $1.58 – its lowest price in 52 weeks. Some bargain hunters may have decided to have a bet on the indebted miner with prices that low, a fully franked dividend yield of 2.9% and potential for asset sales or investment from Chinese investors to prop the company up. Not one for me though.