Why these 4 ASX shares are rocketing higher today

Credit: Chatham House

It looks as though we may be in for a third consecutive day of gains for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). In afternoon trade the benchmark index is higher by 0.5% to 5,380 points.

Four shares which had a particularly good day and helped drive the index higher are as follows:

Billabong International Limited (ASX: BBG) shares have jumped over 5% to $1.38 following an announcement that it will pay $45 million to settle a class action. The case against the surfwear retailer began in 2011 after shareholders alleged the company had engaged in misleading and deceptive conduct and failed to meet its continuous disclosure obligations. Billabong has stated the financial impact of the case is immaterial and already provided for in previous financial reports. With the case out of the way the struggling retailer can now concentrate on turning around its performance.

Billabong shares are down around 44% so far in 2016.

Blackmores Limited (ASX: BKL) shares surged higher by almost 7% to $145.00 after it emerged that Credit Suisse had initiated coverage on the vitamin maker. According to Dow Jones Newswires, the global investment bank has given Blackmores an outperform rating with a $175 price target. I would have to agree with Credit Suisse on this one. The shares look to be great value at present considering the strong growth prospects it has in the China market.

Blackmores shares are still down by around 33% so far in 2016.

Fortescue Metals Group Limited (ASX: FMG) shares have climbed higher once again, this time by around 5% to $4.37. Today’s rise can be attributed to the sudden 6% rise in the iron ore price overnight. There’s no doubt in my mind that Fortescue Metals is a great investment when iron ore prices are at these elevated levels. But whether iron ore will remain elevated for much longer is unfortunately impossible to say.

Fortescue Metals has had a remarkable year and seen its shares rise by a staggering 135%.

Netcomm Wireless Ltd (ASX: NTC) is up around 3% to $2.75 after announcing it has signed a worldwide purchase agreement with Nokia for the supply of fixed-wireless devices for its FastMile initiative. This initiative will allow operators to provide broadband internet services to rural and regional areas. Whilst this is a promising development for this growing company, the shares are on the expensive side in my opinion.

Netcomm Wireless shares are up a huge 284% in the last 12 months.

Before you rush out to buy any of these shares I would recommend checking to see if you own one of these three rotten ASX shares. Each could be doing more harm than good for your portfolio and might be better off out of it.

3 Rotten Shares to Sell, and 1 to Buy Today

After a double-digit rally for the ASX since 2016 lows, investors should be on high alert. You'll find a full rundown below of 3 shares we think you should avoid today plus one top pick worth buying, even if the market turns south and the RBA keeps rates at an "emergency low." Simply click here to uncover these stocks.

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.

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