Weekly| MP1 Saw Short Squeeze After Stellar Earnings; BKL Received a $1.27Bln Offer

As of the close on Friday,$S&P/ASX 200(XJO.AU)$ closed at 7,309.20 points, down 0.72% in the past 5 days.

During the last 5 trading days,  $Megaport Ltd(MP1.AU)$, $Blackmores(BKL.AU)$, $Nanosonics(NAN.AU)$, $Kelsian Group Ltd(KLS.AU)$ and $Credit Corp(CCP.AU)$ were up 32.78%, 20.91%, 10.25%, 8.73%, and 8.17% respectively.

1. $Megaport Ltd(MP1.AU)$ rose 32.78% on stellar earnings and short squeeze

Megaport Limited provides elastic interconnection services to the enterprises and service providers in Australia, New Zealand, Hong Kong, Singapore, Japan, North America, and Europe.

1) Stellar earnings showed strong revenue growth and improving earnings and guidance

Megaport share price rose by a staggering 40% on Friday after its earnings showed strong revenue growth and improving earnings.

Total quarterly revenue up 38% year-on-year to $38.1 million

Monthly recurring revenue (MRR) up 48% to $14.1 million

Reported EBITDA swinging to a positive $7.2 million from a $12.1 million loss

Additionally, Megaport's management plans to implement strategy changes and reduce costs, which has resulted in drastically improved EBITDA guidance for FY23 and FY24 compared to market consensus, further bolstering the stock price.

2) Short squeeze

One of the reasons behind the rocket-like reaction to the Megaport share price is likely due to the company being on the most shorted ASX shares list once again this week, with a short interest of 11.2%.

Many shorters may be scrambling to exit their positions and buy back shares, which is causing a surge in the stock price.

2. $Blackmores(BKL.AU)$ up 20.91% after receiving a $1.27 billion offer

Blackmores Limited develops, sells, and markets natural health products for humans and animals in Australia, New Zealand, Asia, China, and India.

Japan's Kirin Holdings said on Thursday that it plans to acquire a 100% stake in Australia's natural health firm Blackmores Ltd for about $1.27 billion.

Kirin plans to acquire the shares held by all shareholders of Blackmores for cash.

Following the deal, if it goes through, Blackmores will be delisted from the Australian Securities Exchange in early August, the Japanese company said in a statement.

3. $Nanosonics(NAN.AU)$ up 10.25%

Nanosonics Limited, together with its subsidiaries, operates as an infection prevention company in Australia and internationally.

This is despite there being no news out of the infection prevention company. However, it is worth noting that the healthcare sector performed well this week, with many medical device companies charging higher.

4. $Kelsian Group Ltd(KLS.AU)$ up 8.73%; $Credit Corp(CCP.AU)$ 8.17%

Kelsian Group Limited provides land and marine transport and tourism services in Australia, Singapore, and the United Kingdom.

Credit Corp Group Limited provides debt ledger purchase and collection, and consumer lending services in Australia and the United States.

There is no price-sensitive news available for the two ASX stocks.