4 shares soaring on the ASX today

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has posted its second-consecutive strong day of gains, rising 1.2% today, following yesterday’s 2% jump. It’s also the fourth consecutive positive trading day.

Gains in the big four banks and miners led the way, but it was nothing compared to these four, which posted rises of more than 7%…

Slater & Gordon Limited (ASX: SGH) saw its share price rebound 23.1% to $0.32, having fallen 45.7% on Tuesday this week. The rise was no doubt on the back of bargain hunters thinking they had spotted a bargain. The legal firm has multiple issues, and investors are rightly concerned whether the company can survive given its huge debt levels. Those buyers could either have found the deal of the century or may have just turned their hard-earned cash into dust.

Sims Metal Management Ltd (ASX: SGM) also saw its share price bounce 12.2% to $7.83, and is now up nearly 17% over the past five days. That may not be much consolation for long-term shareholders though, with shares trading above $10 until early November, when they subsequently crashed down as low as $5.96. However, it seems the scrap metal company’s ongoing share buyback and rising iron ore prices may have some investors cheering and diving back in.

Bega Cheese Ltd (ASX: BGA) share price gained 10.1% to $6.22, perhaps after Bell Potter analysts upgraded the company from a Hold to a Buy, with a $6.69 price target. It seems the broker is very happy Bega is moving into providing more value added products, such as infant formula through its joint venture with Blackmores Limited (ASX: BKL). More value added products could be added down the line the broker notes.

Fortescue Metals Group Limited (ASX: FMG) share price gained 7.1% to $2.41, as the iron ore price continues to stabilise above US$50 a tonne. Overnight, iron ore rose 2.1% to US$52.50 a tonne. As a higher cost producer and with higher relative debt levels compared to the big two Australian iron ore miners, a rising iron ore prices means higher margins and cash flows for Fortescue. All a good sign when it comes time for the company to repay some of its debt.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. 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.

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