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Why these 4 shares are ZOOMING higher today

The S&P/ASX 200 (Index: ^AXJO) (ASX:XJO) has started the week off on a positive note thanks to another strong lead from Wall St.

The main index has climbed around 0.2% today, with the energy and utility sectors doing most of the heavy lifting.

Four shares that have received particularly strong support today, include:

Sirtex Medical Limited (ASX: SRX)

After shocking investors with a surprise profit downgrade last Friday, Sirtex shares have rebounded more than 5% today. As highlighted here, the shares now appear to offer a more compelling value proposition, although I believe much of this is dependent on the company receiving favourable clinical trial results over the course of the next year. As a result, Sirtex remains a high risk share and management will need to rebuild their credibility before getting back the full support of investors.

Cover-More Group Ltd (ASX: CVO)

Cover-More shares have soared 43% today after receiving a $1.95 per share takeover offer from Switzerland’s Zurich Insurance Group. The offer is a 48% premium to Friday’s closing price of $1.32 and Cover-More’s board has unanimously backed the offer that will be executed via a scheme of arrangement. Interestingly, the takeover offer is still below the company’s 2013 IPO price of $2 per share.

Domino’s Pizza Enterprises Ltd. (ASX: DMP)

Shares of Domino’s have spiked more than 5% today, after UBS upgraded the company from neutral to a buy. The shares have been under pressure since mid-August as investors have become increasingly concerned about the company’s valuation in light of other high multiple shares being sharply re-rated. However, analysts believe the market is underestimating the pizza maker’s growth potential and have increased their 12-month price target by 42%, from $56 to $79.70.

Santos Ltd (ASX: STO)

The energy sector has gained around 2.7% today after Saudi Arabia and several non-OPEC producers surprised the market and agreed to curb oil production next year. Santos is one of the best performing shares in the sector, rising 4.2%, although Woodside Petroleum Limited (ASX: WPL) and Origin Energy Ltd (ASX: ORG) have also enjoyed gains of more than 3% today. Interestingly, the S&P/ASX 200 Energy (Index: ^AXEJ) (ASX:XEJ) has gained nearly 38% since bottoming in January this year.

Big, Fat, Dividends

This company’s dividend is almost the stuff of legends. Its reliable cash flows support a high payout ratio, and the company’s stash of franking credits are the cherry on the top of the dividend cake. Based on the last 12-months of dividends, shares are offering a fully-franked 6.5% yield, which grosses up to a whopping 9.3%, when those franking credits are included.

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Motley Fool contributor Christopher Georges owns shares of Sirtex Medical Limited. 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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