The S&P/ASX 200 (INDEXASX: ^AXJO) (ASX: XJO) was virtually flat today, gaining 0.26% to 4,959 points.
Although, a number of shares significantly outperformed, and here’s why:
Collins Foods Ltd (ASX: CKF) rose 5% to $4.06 in a move I’ve attributed to bargain hunting, after recent falls earlier this week that were possibly due to KFC’s parent brand announcing a major revamp of its restaurants and processes. Collins hasn’t yet made comment on the issue either way, although some in the market may have been reassured by the company’s strong financial position, with around $90 million available in funding. Sizzler restaurants continue to be a drag on Collins’ performance, although its KFC restaurants have made a good showing recently and there could be good value in the company even after today’s rises.
Collins Foods shares are up 59% in the past 12 months.
Netcomm Wireless Ltd (ASX: NTC) jumped 8% to $3.18 on no news as investors continue to buy the stock, with recent prices valuing the company at a hefty premium to its most recent earnings. It seems the market is pricing in big growth as the result of a significant contract with a US telco carrier that was announced last year. Netcomm is small enough that new contracts can still result in a material step-change in earnings, and the company could be just at the beginning of its growth story.
Netcomm shares are up 381% in the past 12 months.
Senex Energy Ltd (ASX: SXY) gained 6% to $0.26 on the back of rising oil futures overnight and was matched by complementary rises at fellow producers Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO). Shares took a hit in recent days as a lawsuit against the company was announced, although this looks unlikely to have a significant impact on the company’s prospects. Like other commodity producers, an investment in Senex requires patience as much of the company’s full potential won’t be realised in a subdued market.
Senex Energy shares are down 16% in the past 12 months.
Worleyparsons limited (ASX: WOR) rose 6% to $5.46, following on from a similar rise yesterday and taking the month’s gains to 24%. Shares have experienced a material re-rating in recent weeks, trading as high as $6 in March after hitting a low of $3 in February on the back of volatile commodity prices. It seems as though investors believe the worst could be over for Worleyparsons, which has posted a rough few years as commodity investment has declined.
Worleyparsons shares are down 43% for the year.