The benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has had a solid start to 2017 and climbed higher by 1.8% to 5,766 points.
Whilst this is a great gain, it pales in comparison to the returns three ASX shares have provided their respective shareholders so far this year. Here's why their shares have gone nuts:
Atlas Iron Limited (ASX: AGO)
This iron ore producer has seen its share price rise an incredible 63% so far in 2017. As well as receiving a boost from a rebound in iron ore prices, Atlas was given a lift yesterday when S&P Global announced that it had upgraded the miner's credit rating to a B- rating. Last week Atlas repaid A$54 million of debt, reducing its US term loan debt to A$118 million. This went down well with the ratings agency.
Bubs Australia Ltd (ASX: BUB)
Although this newly-listed infant formula manufacturer has gained 105% since listing on the ASX last week, at one stage its shares had gained an astonishing 350%. Whilst I think the company has a lot of potential in the China market thanks to its influential board, it's probably too soon for an investment. I would suggest investors wait to see how the company's sales progress over the next few months before taking the plunge.
Slater & Gordon Limited (ASX: SGH)
This embattled law firm has risen 29% year to date after it was reported that the Law Society in the United Kingdom is fighting proposals to raise the small claims limit to £5,000 for all personal injury claims. Should the proposals be amended or blocked completely it would undoubtedly be a big boost to its Quindell business. Despite this potentially positive news, I still feel investors would be best avoiding Slater & Gordon.
