The S&P/ASX 200 Index (INDEXASX: XJO) fell by 1.5% yesterday, dragged down by most of the market. However, there was a number of shares that were able to defy the index and rose significantly. I think this is a good indicator of things to come. Good companies will always be good companies and we seem to be drifting back to a market that values quality.
ASX 200 company Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) announced a record result. In a preliminary final report released 29 June, net profit for FY20 rose by an amazing 37%. Products to treat COVID-19 patients and strong hospital hardware sales drove the increase.
Optiflow™ nasal high flow therapy and respiratory humidifiers, from the company’s Hospital product group, saw unprecedented demand. In addition, the company also saw its Homecare product group increase revenue by 9%. This includes products for obstructive sleep apnea (OSA) and respiratory support in the home.
Fisher & Paykel saw its share price rise by 6.37% since Friday’s closing price.
Several gold mining shares in the ASX 200 rose on Monday as investors ran to safe havens amid falling equity prices. This included Saracen Mineral Holdings Limited (ASX: SAR) and Silver Lake Resources Limited. (ASX: SLR). However, it was the Evolution Mining Ltd (ASX: EVN) share price that outperformed the rest with a 4.5% rise since Friday’s closing price.
H1 of FY20 saw the company achieve record profit, record cashflow, become debt-free and continue healthy margins with a net group cash flow of $242 million. It is also ramping up production on its acquisition of Red Lake in Ontario Canada, a high-grade long-life orebody. As a fiscally conscious company, it recently sold its mine at Cracow.
The US gold price is within striking distance of $1,800. I have no doubt at all that as long as things remain volatile, gold mining companies will sell at a premium.
A tech stock outside the ASX 200
Outside of the ASX 200, one of the big movers was mid-cap tech company FINEOS Corporation Holdings PLC (ASX: FCL). This Dublin based company is diligently working away developing and selling software for insurance and government social insurance. It claims to be “the leading core platform for life, accident and health insurance globally”. The software is an enterprise-level package which is also web-based.
After listing on the ASX in August of 2019, the company reported an increase in revenues of 37.7% for H1 FY20. Today the company got a boost after announcing a new client acquisition. F&G is a provider of annuity and insurance products from Des Moines, Iowa. F&G and will use FINEOS in both these areas.
The FINEOS share price jumped up by 5.87% since the close of trading on Friday.
It would be cynical to see these spiking share prices as a futile attempt to profit as the ASX 200 falls. However, the market will likely still value announcements that provide evidence of value. Nevertheless, some shares are still a little random. For example, Polynovo Ltd (ASX: PNV) rose today in defiance of the market. Lastly, gold miners have their own counter-cyclical dynamics playing out right now.
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Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends FINEOS Holdings plc. The Motley Fool Australia has recommended FINEOS Holdings plc. 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.