The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has closed down 0.3% at 5,425.7 points, and for the week has gone precisely nowhere (down 0.15%).
Despite the flat market though, several companies have seen their share prices hammered, as we noted earlier today. The flat market has also hidden several companies that have put on strong gains. Here’s our view on four of them.
Orocobre Limited (ASX: ORE) share price gained 6.0% to $3.37. The lithium producer’s share price is still down 10% over the past month despite today’s rise, although there was no company news out today. We also warned earlier this month that not all lithium plays will be successful – although Orocobre is one of those most likely to do the opposite. I’d put the moves today down to normal market volatility.
Bellamy’s Australia Ltd (ASX: BAL) saw its share price rise 4.6% to $13.20. The baby formula company has had a rough month, with the share price falling below $12, before rocketing back up above $13 in the past few days. The company held its AGM earlier this week, which may be the spur driving the share price gains. Management pointed out that it still has plenty of growth levers left to pull, suggesting strong growth could continue – both in Australia and in Asia, particularly China.
Mount Gibson Iron Limited (ASX: MGX) share price rose 8.8% to 31 cents after its quarterly report was released today. The iron ore miner said it sold 0.9 million tonnes of ore for revenues of $45 million during the quarter, helping to boost the company’s cash balance to $437 million. Mount Gibson only has a market cap of $339 million – so is effectively trading below its net cash balance (zero debt). That might seem attractive to some investors, until you realise that the company’s all in group cash cost of $50 per wet metric tonne is higher than the average price it received of US$37 per dry metric tonne for its ore.
Medibank Private Limited (ASX: MPL) saw its shares rise 2.7% to $2.63, which may have more to do with the bad news coming from hospital operator Healthscope Ltd (ASX: HSO) today. Healthscope announced that it was seeing slower-than-expected revenue growth, presumably from fewer patients. That is good news for health insurers like Medibank and should result in lower claims, and therefore higher earnings.
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The Motley Fool Australia owns shares of Bellamy's Australia. 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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