US tech stocks including Tesla took off sharply overnight. Image: Space Shuttle, Getty
ASX Small Cap Lunch Wrap: Investors find value in discounted US tech, ASX gold and oil stocks
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Investor hope was restored in Elon Musk’s EV company Tesla after its shares bounded 19.6 per cent higher overnight to $US673.58 per share following a three-month low.
The dramatic recovery in Tesla’s share price and that of the tech heavy Nasdaq index which rose a more modest 3.7 per cent in Tuesday Wall Street trade stunned tech naysayers.
A slew of reasons were advanced by analysts for the sharp turnaround in Tesla’s share price, including growing consumer confidence as vaccines are rolled out, rising sales data for Tesla EVs, and a decline in US bond yields which is positive for growth stocks.
Chinese sales data for February showed Tuesday that Tesla had sold 18,320 units of its Model 3 and Model Y EVs produced at its plant in Shanghai.
“Tesla will be in a position to deliver 2 [million] units in 2023, and deliver earnings of $US12 per share, more than 50 per cent above current expectations,” Tesla stock watcher and market analyst at New Street Research Pierre Ferragu told Barron’s.
Ferragu has raised his share price target for Tesla to $US900 per share from $US578 previously.
To markets:
At lunchtime in Sydney, the ASX All Ordinaries index was 16 points lighter at 6,985 having surged to 7,038 points in morning trade Wednesday.
US stock indexes rallied overnight as the S&P 500 rose 1.4 per cent. The NASDAQ was 3.7 per cent higher, while the broader Dow Jones added 30 points to 31,832.
“US stocks rallied on Tuesday, with the Nasdaq gaining about 4 per cent to recoup heavy losses from the previous session as US bond yields retreated and investors scooped up battered technology stocks,” said stockbroker Argonaut in a note.
The price of gold in US dollars has climbed above $US1,700 per ounce to $US1,713 ($2,222/ounce) Wednesday.
Ten-year bond rates slipped with the US yield at 1.54 per cent and Australia’s at 1.73 per cent.
WINNERS
Here are the best performing ASX small cap stocks at 12pm Wednesday March 10:
Swipe or scroll to reveal the full table. Click headings to sort.
Stocks highlighted in yellow made market moving announcements
| CODE | NAME | PRICE | % CHANGE | VOLUME | MARKET CAP |
|---|---|---|---|---|---|
| ASO | Aston Minerals Ltd | 0.054 | 59 | 61620836 | $ 29,637,712.59 |
| ANL | Amani Gold Ltd | 0.0015 | 50 | 1316525 | $ 10,786,996.75 |
| ANW | Aus Tin Mining | 0.0015 | 50 | 8175333 | $ 10,062,318.38 |
| BAS | Bass Oil Ltd | 0.0015 | 50 | 2774999 | $ 3,342,140.10 |
| OEX | Oilex Ltd | 0.003 | 50 | 1574185 | $ 8,333,552.05 |
| SBR | Sabre Resources | 0.005 | 25 | 1093426 | $ 6,732,254.60 |
| MCT | Metalicity Limited | 0.017 | 21 | 20519250 | $ 24,739,739.57 |
| CXM | Centrex Metals | 0.063 | 21 | 3934307 | $ 19,061,471.36 |
| AVW | Avira Resources Ltd | 0.006 | 20 | 186000 | $ 6,875,200.00 |
| BRK | Brookside Energy Ltd | 0.019 | 19 | 93124132 | $ 26,423,337.49 |
| FGL | Frugl Group Limited | 0.069 | 17 | 9344783 | $ 9,646,500.00 |
| HSN | Hansen Technologies | 4.89 | 17 | 535252 | $ 834,408,181.16 |
| CGN | Crater Gold Min Ltd | 0.021 | 17 | 76767 | $ 22,094,925.61 |
| EVS | Envirosuite Ltd | 0.14 | 17 | 895647 | $ 123,137,268.72 |
| RNO | Rhinomed Ltd | 0.14 | 17 | 32317 | $ 30,457,095.84 |
| ACB | A-Cap Energy Ltd | 0.05 | 16 | 318722 | $ 37,491,049.24 |
| ALY | Alchemy Resource Ltd | 0.015 | 15 | 1000 | $ 8,739,164.89 |
| JAN | Janison Edu Group | 0.068 | 15 | 310254 | $ 124,286,816.39 |
| GLH | Global Health Ltd | 0.4 | 14 | 2500 | $ 14,734,412.00 |
| RVS | Revasum | 0.4 | 14 | 42500 | $ 35,974,605.10 |
| SHE | Stonehorse Energy Lt | 0.025 | 14 | 10792838 | $ 10,395,965.18 |
| GAS | State GAS Limited | 0.57 | 14 | 66033 | $ 86,516,152.50 |
Aston Minerals (ASX:ASO) was a strong gainer in early Wednesday trade after announcing it had struck gold during a maiden drilling program for its Edleston project in Canada.
The drilling intersected visible veinlets of gold 200m along strike from the main ore body identified at the Edleston project in the Canadian province of Ontario.
“The effective strike length tested by drilling consists of only 1km out of a 10km of strike within the project,” managing director, Dale Ginn, said.
Another early riser was oil explorer Brookside Energy (ASX:BRK) that was mentioned in a Stockhead article featuring stock picks by pro investor James Whelan.
Whelan said Brookside Energy was worth looking at from an investment point of view because “it is a perfect representation of where I am investing”.
Brookside Energy has leasehold areas for gas and oil in the Anadarko super basin in the US state of Oklahoma which has a long history of oil production.
Price comparison platform company Frugl Group (ASX:FGL) rose significantly Wednesday after signing a service agreement with groceries wholesaler Metcash Trading.
Frugl Group is providing data analysis information to Metcash Food through its frugal and InFocus Analytics platforms to drive intelligence-led retail decision making.
The agreement enables Frugl Group to develop its relationship with Metcash with a view to expanding the scope of services it provides the wholesaler.
Frugl Group’s data analysis platform allows consumers to compare the cost of goods in different retailers and supermarkets.
LOSERS
Here are the worst performing ASX small cap stocks at 12pm Wednesday March 10:
Swipe or scroll to reveal the full table. Click headings to sort.
Stocks highlighted in yellow made market moving announcements
| CODE | NAME | PRICE | % CHANGE | VOLUME | MARKET CAP |
|---|---|---|---|---|---|
| AUH | Austchina Holdings | 0.016 | -20 | 12728637 | $ 32,682,487.22 |
| MLS | Metals Australia | 0.002 | -20 | 2000000 | $ 10,477,258.94 |
| NPM | Newpeak Metals | 0.002 | -20 | 12530000 | $ 14,185,403.25 |
| AOU | Auroch Minerals Ltd | 0.18 | -18 | 2111154 | $ 59,890,074.20 |
| YPB | YPB Group Ltd | 0.0025 | -17 | 36815622 | $ 14,163,153.86 |
| RFR | Rafaella Resources | 0.1 | -13 | 714041 | $ 14,709,140.67 |
| BNO | Bionomics Limited | 0.25 | -13 | 1266237 | $ 242,194,954.03 |
| MTB | Mount Burgess Mining | 0.007 | -13 | 150000 | $ 5,281,190.39 |
| VAL | Valor Resources Ltd | 0.007 | -13 | 689585 | $ 22,670,651.34 |
| PKD | Parkd Ltd | 0.05 | -12 | 118637 | $ 4,283,550.00 |
| WSA | Western Areas Ltd | 2.09 | -11 | 6484700 | $ 643,807,834.02 |
| NCR | Nucoal Resources Ltd | 0.009 | -10 | 4438 | $ 7,686,123.54 |
| ELT | Elementos Limited | 0.01 | -9 | 1492947 | $ 35,843,363.82 |
| AAU | Antilles Gold Ltd | 0.09 | -9 | 91588 | $ 19,319,023.25 |
| DRX | Diatreme Resources | 0.021 | -9 | 72173 | $ 59,235,502.86 |
| PO3 | Purifloh Ltd | 1.02 | -9 | 1770 | $ 34,991,082.78 |
| LSR | Lodestar Minerals | 0.011 | -8 | 458000 | $ 12,420,339.58 |
| PEX | Peel Mining Limited | 0.285 | -8 | 608579 | $ 105,909,582.34 |
| JXT | Jaxstaltd | 0.08 | -8 | 521854 | $ 21,505,558.71 |
| ASQ | Australian Silica | 0.081 | -8 | 102096 | $ 23,583,446.66 |
| STM | Sunstone Metals Ltd | 0.012 | -8 | 53286 | $ 28,729,839.40 |
| TSC | Twenty Seven Co. Ltd | 0.006 | -8 | 723114 | $ 13,821,085.72 |
AustChina Holdings (ASX:AUH) was a significant faller Wednesday as the energy exploration company posted its December 2020 half-year results.
The company made a loss after tax of $711,850 for the December-ended half year and is looking into investing in biogas in the renewable energy sector.
AustChina Holdings has two exploration permits for coal in Central Queensland, and its Blackall project for thermal coal in the Eromanga basin has a resource of 1.3 billion tonnes.
