After a great start to the trading day the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) gave up its early gains and looks set to end the day 0.3% lower at 5,220 points.
Despite the index dropping slightly, there were four stocks in particular which have put on strong gains today. Here’s why:
Collection House Limited (ASX: CLH) shares have climbed over 6% to $1.12 after the company provided the market with a trading update this morning. The company has been facing increased competition in the Purchased Debt Ledger (PDL) market, which had investors worried about its ability to generate revenue. But the trade update today allayed these fears, revealing the company’s PDL acquisitions are improving.
Despite today’s gain its share price is still down by 50% in the last 12 months.
REA Group Limited (ASX: REA) jumped almost 4% to $52.00 today following the announcement that the company had purchased flatmates.com.au for $25 million. Flatmates.com.au is Australia’s largest share accommodation website with an estimated 2.6 million visits each month. As small an acquisition as it may be, the market clearly seems impressed with it judging by the buying pressure on its shares today.
REA Group’s share price has now climbed just under 8% in the last 12 months.
Rent.com.au Ltd (ASX: RNT) has soared 24% today to 18 cents most probably on the back of news of REA Group’s acquisition of Flatmates.com.au. It would appear as though the market believes that Rent.com.au will be the next acquisition on the list for REA Group. As pointed out in the linked article, there is also a chance that Fairfax Media Limited’s (ASX: FXJ) Domain could also make a play for Rent.com.au. This will be welcome news for shareholders who have had to endure a terrible 2016 so far.
Despite the gains today Rent.com.au’s share price is still down by over 47% year-to-date.
Slater & Gordon Limited (ASX: SGH) shareholders will be pleased to have seen the embattled law firm’s share price climb a massive 14% today to just a touch over 30 cents. The rally in its share price appears to be related to reports suggesting that bankruptcy could be avoided by an agreement with Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd. (ASX: NAB), which is thought to be close.
Slater & Gordon’s share price is now up by over 20% in the last 30 days.
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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. 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.