These three companies all postedencouraging rises yesterday after releasing good news to the market. Today, Im investigating what news was released and whether shares will continue to rise.
Increasing profits at Gem
Gem Diamonds (LSE: GEMD) released full year results yesterday that were very well received by the markets. Profit for the year (2015) was US$67.4m, with earnings per share up 26% Y.O.Y to 30.2 US cents. There was another highlight in the results and that was a 5 US cents dividend and a special dividend of 3.5 US cents.
Gems CEO Clifford Elphnick commented on the results saying Although 2015 was a challenging year for the diamond mining industry, it is encouraging to report that the Group has delivered a strong set of operational and financial results
Gems shares responded well yesterday and it looks like the companywill deliver solid results well into the future. This scope for growth is highlighted by three broker upgrades yesterday with target prices between 181p-270p. Gems current share price is 105p.
OFGEM closes investigation
Moneysupermarket (LSE: MONY) also delivered good news to the market yesterday. The company released news that OFGEM had closed an investigation into the company, OFGEM went on to highlight the important role that price comparison websites play for consumers. The companys shares responded well to the news and a sigh of relief was felt around the markets.
Todays news wasnt so clear cut. It was announced that founder Simon Nixon has sold his last 124m of shares in the company and now retains no shares.Mr Nixon began selling shares in 2013, so it mayseema good sign that he is finally out of the company. Moneysupermarketsshares may now be free to move upwards towards the 52 week high of 381p made at the start of this year.
DFS due imminently at Sirius
Sirius Minerals (LSE: SXX) is due some big news tomorrow (17 March 2016). The very important definitive feasibility study (DFS) for its polyhalite project in North Yorkshire is due for release.
CEO Chris Fraser stated The DFS announcement will allow us to clearly outline the Companys strategy and value proposition throughout multiple scenarios and cycles. He then went on to mention that the project in North Yorkshire is world class.
Sirius Minerals shares werein demand in anticipation of the news release and are up around 25% in two days. The announcement yesterday was followed by a buy recommendation from Shore Capital to go with the current buy opinionfrom WH Ireland, which carries a 50p price target (current share price 23p).All eyes will be on Sirius tomorrow morning for the much awaited DFS pressrelease.
All three of these companies released encouraging news yesterday and shares reacted well moving higher. This just goes to show that in a bear market there are good stock picking opportunities to make a good return. All three stocks here are worth keeping an eye on as big gains could be around the corner.
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Jack Dingwall has no position in any shares mentioned. The Motley Fool UK has recommended Moneysupermarket.com. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
