ASX Small Cap Lunch Wrap: Who’s flogging a dead unicorn today?

Two years ago, Beijing-based car trading platform Renrenche had a valuation of $2 billion. Now it could be sold for just ~$1,400.

Renrenche was one of China’s hottest tech unicorns (a privately held start-up company with a value of over $1 billion), backed by deep-pocketed investors including Goldman Sachs and Tencent.

It ran into financing troubles “amid the unravelling of China’s once-booming sharing economy”, according to Bloomberg.

Where does its rate amongst failed unicorns?

Live sports streaming start-up LeSports raised $2.4 billion before filing for bankruptcy in 2019 owing ~$5 billion to creditors.

In 2014, much-hyped Fitbit wannabe Jawbone had a valuation of $4.5 billion. It failed to crack the ‘wearables’ market and began liquidating assets just three years later.

Then there’s infamous office space provider WeWork. It’s China business, which was valued at $7 billion in 2018, recently sold for just $280 million.

Today, it was Quibi’s turn. Never heard of it? Investors are certainly trying to forget it – the “quick bites” video app burned through $US2 billion in six months and shut its doors today. Ouch.

To Markets:

Both US and European share markets closed slightly lower Wednesday.

Despite this, of the 84 S&P 500 firms on Wall Street that have reported third-quarter results, 85.7 per cent have topped lowered earnings expectations, according to IBES Refinitiv data.

The Aussie market was off to a bad start, with the benchmark ASX 200 index plunging more than 1 per cent to 6,128 points on the open.

It had recovered slightly by midday to be ~0.7 per cent in the red.

WINNERS:

Here are the best performing ASX small cap stocks at 12pm Thursday, October 22:

Swipe or scroll to reveal the full table. Click headings to sort.

Explorers Australia United Mining (ASX:AYM) and MinRex Resources (ASX:MRR) surged after inking a joint venture agreement over a project in the popular Lachlan Fold Belt of NSW.

It’s a great day to be an ASX debutante. eCommerce company MyDeal (ASX:MYD) has more than doubled, while Miramar Resources (ASX:M2R) is currently up +140 per cent.

And a tie-up with the NASDAQ-listed Super League Gaming (SLGG) has moved the needle for gaming tournament platform Esports Mogul (ASX:ESH).

LOSERS:

Here are the best performing ASX small cap stocks at 12pm Thursday, October 22:

Swipe or scroll to reveal the full table. Click headings to sort.