It's been another down day for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) as the trading session draws to a close, but there are several businesses that have exploded higher this afternoon. Let's take a look at what might be behind today's price action.
Metcash Limited (ASX: MTS) shares are up 14% to $1.51 after the company posted half-year results today showing underlying earnings down 12.7% to $133.7 million, with net debt reduced 35% to $435.3 million. Investors are likely eyeing the potential of this business to execute a successful turnaround after selling its automotive business to help pay down debt and investing heavily in its IGA supermarket operations. The business is also heavily short sold and today's rise may in part be a result of surprised short sellers buying back stock to close positions.
Bellamy's Australia Ltd (ASX: BAL) is the organic baby formula manufacturer that has seen its shares up 7.9% today and an incredible 624% over the past year. The reason for today's rise is the announcement of a manufacturing deal with Fonterra to increase supply capacity from the middle of 2016. Its product is in huge demand in both China and Australia, with price rises likely and a long growth runway it may still be a good buy today.
Netcomm Wireless Ltd (ASX: NTC) shares are up 6.5% to $3 today. It is a provider of internet services to remote communities across Australia where standard ADSL or fibre infrastructure is not available. Last week it announced a deal with a US telco to provide its services in rural North American communities, with the telco aiming to provide regional broadband to other international communities.
Bulletproof Group Ltd (ASX: BPF) shares are up 6.5 cents or 16.5% despite the cloud consulting, delivery and services business releasing no news to the market today. The stock is widely fancied amongst small-cap enthusiasts although the heavy buying over the last few days may be out of proportion to the company's value based on cash flow potential. Revenues were just $29 million in the last financial year with underlying earnings at $4.2 million, which places the company firmly in the micro-cap sector.
