Why these 3 ASX shares have gone gangbusters this month

The last 30 days have been incredibly eventful for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). Although the index has fully recovered from its post-election meltdown, it is still down almost 2% during the period.

Despite this there are a number of shares which have defied the market and managed to climb higher. Three in particular have gone gangbusters in the last 30 days. Here’s why:

Fortescue Metals Group Limited (ASX: FMG)

The incredible iron ore rally is the reason behind the meteoric rise of Fortescue Metals’ share price. In the last 30 days alone Fortescue Metals has seen its share price rise 28% to bring its year-to-date return to a staggering 234%. Demand for iron ore is predicted to increase if President elect Donald Trump embarks on major infrastructure projects. Whether or not that demand is enough to justify the current prices, I’m not sure. But one thing I am sure of is that if iron ore prices remain at these levels for the foreseeable future, Fortescue Metals will be an attractive investment option.

PMP Limited (ASX: PMP)

This commercial printing company has seen its share price rise by almost 25% in the last 30 days thanks to its plan to merge with privately owned IPMG Group. Not only could the merger create a real force in the printing industry, but it is expected to be accretive to earnings and deliver significant synergies. According to the release the transaction is priced at 5.7x FY 2016 normalised IPMG EBITDA before synergies. This reduces to just 2x FY 2016’s normalised EBITDA, once synergies are taken into account.

Western Areas Ltd (ASX: WSA)

This leading nickel producer has seen its share price jump 20% in the last 30 days. Unsurprisingly, the majority of these gains came following the rally in commodity prices after Donald Trump’s election victory. As nickel is a key ingredient in the manufacture of stainless steel, Trump’s bold infrastructure plans could drive demand for the metal. Considering this time last year nickel prices were at 12-year lows, the turnaround in prices this year will have been a welcome relief for Western Areas.

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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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