Why Cann, Ellex Medical Lasers, Resolute, & Speedcast are racing higher

The Ellex Medical Lasers Ltd (ASX:ELX) share price and the Speedcast International Ltd (ASX:SDA) share price are two of four racing higher on Tuesday…

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In afternoon trade the S&P/ASX 200 index is having a subdued day of trade ahead of the Christmas break. At the time of writing the benchmark index is flat at 6,785.8 points.

Four shares that are performing much better are listed below. Here's why these ASX shares are racing higher:

The Cann Group Ltd (ASX: CAN) share price is up 8% to 47.5 cents despite there being no news out of the cannabis company. However, with its shares down materially this year due to concerns over an oversupply of cannabis dry flower, some investors may believe that they have been oversold. Even after today's gain, Cann Group's shares are down over 76% since the start of the year.

The Ellex Medical Lasers Ltd (ASX: ELX) share price has rocketed 38% higher to 84.2 cents. Investors have been buying the healthcare technology company's shares after it announced the sale of its Lasers and Ultrasound business. Lumibird Group has agreed to pay $100 million in cash for the business. The majority of the net proceeds will be returned to shareholders. Following the transaction, Ellex will be debt-free and focusing on devices to treat glaucoma in a growing global market.

The Resolute Mining Limited (ASX: RSG) share price is up 4.5% to $1.16. Investors have been buying Resolute and the rest of the gold miners after a rise in the gold price overnight. Economic concerns sent the precious metal higher. In afternoon trade the S&P/ASX All Ords Gold index is up a sizeable 2.5%.

The Speedcast International Ltd (ASX: SDA) share price has jumped 11% to 83.5 cents. The catalyst for this may be news that D8 Investments has become a substantial holder this week. The investment company now owns 6.25% of the provider of remote communications and IT services following a series of share purchases this month.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Ellex Medical Lasers Limited. 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 Scott Phillips.

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