Why these 3 ASX shares have gone gangbusters in October

Credit: Oatsy

So far this month the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has been having a reasonably mixed time. The benchmark index started off strongly but in recent days has faded and dropped into negative territory.

Three shares in particular haven’t let this hold them back. Their respective share prices have grown like gangbusters in October. Here’s why:

Karoon Gas Australia Limited (ASX: KAR)

So far in October the shares of this oil and gas producer are up by a whopping 37%. Investors piled into Karoon Gas after it announced that it was negotiating the acquisition of two oil projects from Brazilian petroleum giant Petrobras. Furthermore, the company also announced that it had been awarded an exploration permit for the Ceduna Sub‐Basin off the coast of South Australia. Karoon believes the basin has the potential to be a globally significant hydrocarbon province with world class potential.

Praemium Ltd (ASX: PPS)

The shares of this growing fintech company have surged higher by 20% so far this month. Last week the leading global provider of investment administration, separately managed accounts, and financial planning technology platforms released its latest quarterly update. For the September 2016 quarter Praemium reported record inflows of $494 million, meaning it now boasts over $5 billion of SMA funds under administration. The company also found favour with brokers recently. Baillieu Holst has reiterated its buy rating and placed a 60 cents price target on its shares according to a research note.

Whitehaven Coal Ltd (ASX: WHC)

Forget gold, coal is the hottest commodity in town. Thanks largely to the Chinese government’s decision to put a limit on its own coal production, prices have been rocketing higher in recent months. As we approach the northern hemisphere’s winter, demand is expected to pick up even more. In its quarterly report released yesterday management advised that the December quarter semi-soft coking coal settled at US$130 a tonne, up 86% on the September quarter. Whitehaven Coal’s share price is up 20% so far this month as a result.

Missed out on these gains? Don't worry! These rapidly growing shares could be next in line to bolt higher if you ask me.

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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.

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