Investing in the ASX has no doubt felt a bit like a roller coaster over the past couple of months. The ALL ORDINARIES (ASX: XAO) fell almost 40% in March from its February highs, with the S&P/ASX 200 Index (ASX: XJO) not far behind, falling just over 36%.
However, April is a new month, and in keeping up with recent market volatility the market has risen strongly to officially enter a bull market yesterday. At the time of writing the All Ordinaries is up almost 25% from its low in March, with the ASX 200 lagging the broader market but still up around 20%.
These are no doubt exceptional gains for a time frame of less than a month, although there is still a way to go to reach February's highs. However, some ASX shares experience volatility far exceeding that of the broader market, with greater drops and rises when compared to the market. This is what a company's 'beta' is – a rough measure of risk, or volatility.
Below are 3 ASX shares that experienced steep drops in March but have each already rebounded in excess of 100% since 23 March.
Medical Developments International Ltd (ASX: MVP)
The Medical Developments share price has increased 121% since its low of $3.76 on 23 March. Investors have been flooding back to buy shares in the Penthrox (green whistle) producer as ASX investment sentiment returns.
Medical Developments made an announcement to the ASX on 17 March indicating that the potential negative impact of the COVID-19 pandemic on the company appeared to be limited. Its key suppliers remained open for business and it had sufficient stock on hand to meet forecast demands.
Medical Developments' recent share price rise has been impressive and I believe it has a bright future. Despite potential for short term sales loss due to decreased recreational activity, I believe demand will remain strong and the company will continue to grow in the future.
Audinate Group Ltd (ASX: AD8)
Another company that has seen its share price soar in the last few weeks is digital audio networking company Audinate.
Audinate's share price has risen 133% since its low of $2.51 on 23 March. Investors flocked back to Audinate's shares after the company made an announcement indicating that it remains well-positioned with a strong balance sheet.
Additionally, its unaudited revenue for the March quarter was up 14%. With its strong balance sheet, investors appear convinced that Audinate is in a position to weather any significant economic changes, meaning its current share price could be undervalued.
Afterpay Ltd (ASX: APT)
Fintech company Afterpay experienced a huge fall from grace at the end of February and through most of March. Its shares fell a massive 80% to a low of just $8.01. However, investors lucky enough to have purchased the shares on 23 March at this low have since seen them rise a whopping 250%. An incredible rise in such a short time, especially for an ASX 200 company.
Thanks to its significant exposure to online spending, Afterpay has continued to see sales growth. In fact, it reported that despite broader economic conditions, March was its 3rd largest sales month on record, with 88% of global underlying sales from online sources. Investors appear to have realised the irrational sell-off and have been buying back the shares over the past few weeks.
