Why these 4 ASX shares started the week with gains

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has started the week strongly and is up 0.3% to 5,790 points in afternoon trade.

Four shares which have climbed more than most are listed below. Here’s why they are starting the week strongly:

The a2 Milk Company Ltd (Australia) (ASX: A2M) share price has continued to climb higher following last week’s profit guidance upgrade. Its shares are up 5% to $3.88 today. Whilst its shares do look reasonably expensive, I still believe it could be a great long-term buy and hold investment.

The Adairs Ltd (ASX: ADH) share price is up 7% to 90 cents. The retailer’s share rose a massive 43% on Friday despite there being no news out of the company. In fact, management responded to a price query advising that it was unaware of the reason for the buying frenzy and stated that there were no changes to its full-year guidance. Is it the retailer good value, or a value trap?

The Bellamy’s Australia Ltd (ASX: BAL) share price has surged 13% to $7.26. Investors have been fighting to get hold of shares of the infant formula company since it announced plans to raise capital in order to fund an acquisition and pay off supplier Fonterra in exchange for being able to reset supply contracts.

The Galaxy Resources Limited (ASX: GXY) share price is up 4.5% to $1.72. The lithium miner’s shares fell sharply last week amid concerns over increased future supply of the metal. But the market appears to have responded positively to news that a number of Galaxy directors have taken this opportunity to snap up shares on the cheap.

If you missed out on gains today don't worry. I'm tipping these shares to be next in line for a big jump higher.

Top 3 ASX Blue Chips To Buy In 2017

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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of A2 Milk. 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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