• The ASX 200 rose 0.44% and the ASX XEC was up 0.57%
  • A total of 7 out of 11 sectors were higher, with Real Estate leading the way
  • UNITH has scored a HOA deal with Japanese AI company NVISO SA

 

The ASX 200 managed a 0.44% gain today, with 7 out of 11 sectors higher, led by Real Estate which gained 1.82%.

The XEC small cap index saw a 0.43% gain and is now at its highest point since August last year and is up 9.91% for the year-to-date.

Among the notable small caps news today was ‘digital human brand’ UNITH (ASX:UNT) who focus on developing facial movement deep learning, audio machine learning, and conversational design (NLP) to generate the first customizable, interactive avatar.

And they’ve just signed a binding Heads of Agreement (HOA) with NVISO Japan K.K – a subsidiary of AI player NVISO SA – to integrate behavioural analytics into digital humans in conversational settings for deployment into digital kiosks in Japan. 

UNITH’s Talking Head platform will be integrated into NVISO’s holistic platform which features predictive analytics tied to emotional and transactional outcomes. 

The integrations will be designed to deliver interactive digital avatars that are able to understand various behavioural and emotional facets of its interactors through eye tracking and facial detection. 

Not creepy at all.

 

 

 

“The Japanese market is well established for automation through computer-to-human interactions with digital characters and NVISO’s presence and expertise in Japan brings significant added value to the partnership,” UNITH CEO Idan Schmorak says.

“By deploying a digital avatar to a kiosk and humanising it with behavioural detection, we will deliver an AI solution that can know how a human is feeling, understand their attentiveness and facilitate an outcome accordingly. 

“This step is consistent with UNITH’s distribution strategy to scale the reach of the Talking Head technology while developing the platform.” 

For context, the end-user expenditure on AI systems (including software, services, and hardware) in Japan stood at US$2.1 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 24% until 2026, which would value the market at more than $6.1 billion by 2026. 

 

 

NOT THE ASX

“US markets have started the week in the same way they ended last week, with the Dow lagging behind the S&P 500, while the Nasdaq has moved to one-month highs after yet another tech company announces a series of cost-saving measures and job cuts,” CMC Markets analyst Michael Hewson wrote, referring to music-streaming company Spotify’s announcement of 600 layoffs.

Areas of the market hardest hit in last year’s selloff have led the rally in the new year as the prospect of slowing rates gave investors’ confidence to pick up shares of companies promising growth in the future. 

Technology stocks have climbed, with the Nasdaq Composite up roughly 8% in 2023.

Though traders are betting the Fed will cut rates later this year, some money managers are predicting rates could stay higher for longer as the central bank has more work in store to tame inflation.

Daniel Morris, chief market strategist at BNP Paribas Asset Management, said that is one reason why the firm is taking a cautious stance on stocks. It is also betting that two-year Treasury yields will rise relative to yields on six-month bills, which could happen if market forecasts for interest rates pick up again.

“Inflation isn’t going to slow down as fast as the market expects,” Mr. Morris said.

 

ASX SMALL CAP LEADERS

Here are the best performing ASX small cap stocks:

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

Code Company Price % Volume Market Cap
LML Lincoln Minerals 0.035 67% 10,398,010 $12,074,657
SPA Spacetalk Ltd 0.042 62% 5,316,107 $6,661,183
AMD Arrow Minerals 0.009 50% 70,425,323 $15,202,591
ANL Amani Gold Ltd 0.0015 50% 797,868 $24,693,441
GLV Global Oil & Gas 0.0015 50% 4,801,822 $3,428,798
WBE Whitebark Energy 0.0015 50% 5,164,945 $6,464,886
CCE Carnegie Cln Energy 0.002 33% 2,630,649 $23,463,861
PXX Polarx Limited 0.03 30% 34,859,450 $31,117,779
LMLND Lincoln Minerals 0.022 29% 3,710,678 $13,625,128
GLA Gladiator Resources 0.025 25% 1,810,748 $10,683,398
CMD Cassius Mining Ltd 0.031 24% 1,364,162 $10,212,323
SMX Security Matters 0.235 21% 837,856 $32,742,749
PKO Peako Limited 0.018 20% 1,044,048 $5,688,229
SI6 SI6 Metals Limited 0.006 20% 100,000 $7,476,973
IS3 I Synergy Group Ltd 0.019 19% 481,000 $4,625,286
CDA Codan Limited 5.22 18% 1,872,836 $800,762,975
UNT Unith Ltd 0.027 17% 1,695,306 $17,129,534
PHL Propell Holdings Ltd 0.0375 17% 75,031 $3,396,263
AYT Austin Metals Ltd 0.007 17% 277,560 $6,095,248
GNM Great Northern 0.0035 17% 2,960,000 $5,127,153
ASM Ausstratmaterials 1.595 16% 1,562,481 $230,053,213
ENV Enova Mining Limited 0.015 15% 50,000 $5,082,081
CBY Canterbury Resources 0.039 15% 50,000 $4,556,800
INP Incentiapay Ltd 0.008 14% 21,500 $8,855,445
TKL Traka Resources 0.008 14% 25,077 $5,059,422
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The biggest winner was graphite explorer Lincoln Mines (ASX:LML) who was placed in bourse purgatory way back in September 2020 because it had no cash and was doing bugger all exploration.

LML spent 2021 doing mostly nothing, but woke up in 2022 when it received an unsolicited takeover offer from fellow South Australian project developer Quantum Graphite (ASX:QGL).

The initial all share offer (1 QGL share for every 40 LML Shares held, valuing the company at ~$6m) was rejected by the board and substantial shareholders in the company, but QGL has today extended its offer again for the third time.

What’s changed? The QGL share price, which is now ~70% higher since the offer was first made September last year (although well down on the high of 70c from earlier this month).

$167m market cap QML says LML’s Kookaburra Gully project has synergies with its own mothballed, century-old ‘Uley’ graphite mine in South Australia, one of the largest high-grade natural flake deposits in the world.

But like LML, QGL doesn’t have a great track record of success.

QGL first suspended operations at the struggling Uley mine in late 2015, before entering administration in July the following year.

The share price tumbled from highs of 70c to 11.5c prior to suspension.

It relisted on the ASX in late September 2018 after three years of ostensibly sorting out its debts and finances.

It was suspended again in 2020 after the ASX required further info relating to its Annual Report, and then reinstated in December the following year.

Kids smartwatch developer Spacetalk (ASX:SPA) had a decent Q2 FY23, with a $3.3m improvement in Q2 FY23 free cash flow as compared to Q1 FY21 – the first time Spacetalk has had a positive quarterly cashflow since Q3 FY21.

Compared to the pcp, the $3.3m cash inflow was a fantastic transformation vs the outflow of $2.9m in Q1 FY21.

During the quarter, Spacetalk exited a lower profitable product line (budget watch) in favour of a more profitable alternative.

The company also underwent a significant cost reduction program, with $2m slashed over Q3.

The search for a CEO is still progressing but has reached the final stage, and the company says it’s hoping to to announce something to the market shortly.

They had $4.2m cash in bank at the end of the period.

 

ASX SMALL CAP LAGGARDS

Here are the worst performing ASX small cap stocks:

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

Code Company Price % Volume Market Cap
AYI A1 Invest & Res Ltd 0.001 -50% 5,227,782 $36,843,893
NTL New Talisman Gold 0.002 -33% 2,056,767 $9,381,676
ARE Argonaut Resources 0.0015 -25% 1,364,767 $12,723,743
WFL Wellfully Limited 0.015 -25% 281,660 $7,822,965
AUR Auris Minerals Ltd 0.014 -22% 1,739,965 $8,579,267
RON Roninresourcesltd 0.125 -22% 107,784 $4,639,695
BMG BMG Resources Ltd 0.014 -18% 515,171 $6,561,858
FLX Felix Group 0.1 -17% 107,600 $18,806,366
CLE Cyclone Metals 0.0025 -17% 2,078,905 $18,350,211
LER Leaf Res Ltd 0.02 -17% 2,690,297 $43,440,933
TD1 Tali Digital Limited 0.0025 -17% 1,755,719 $8,325,467
PO3 Purifloh Ltd 0.21 -16% 40,000 $7,880,875
BUS Bubalusresources 0.195 -15% 282,433 $6,220,620
C1X Cosmosexploration 0.395 -15% 1,149,960 $11,625,000
ZIP ZIP Co Ltd.. 0.715 -14% 45,289,387 $639,080,497
1AG Alterra Limited 0.012 -14% 44,918 $9,751,736
BLZ Blaze Minerals Ltd 0.012 -14% 236,446 $5,145,115
DDT DataDot Technology 0.006 -14% 507,819 $8,707,086
ICN Icon Energy Limited 0.012 -14% 3,793,924 $10,752,191
LNU Linius Tech Limited 0.003 -14% 33,850,090 $10,427,945
THR Thor Energy PLC 0.006 -14% 2,060,801 $10,187,190
GUL Gullewa Limited 0.052 -13% 12,037 $11,746,386
ADX ADX Energy Ltd 0.007 -13% 5,897,180 $28,103,300
HHI Health House Int Ltd 0.007 -13% 140,438 $1,130,637
SZL Sezzle Inc. 0.66 -12% 4,995,589 $154,998,524
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TRADING HALTS

 

Cipherpoint (ASX:CPT) – capital raising

Native Mineral Resources (ASX:NMR) – capital raising

K-TIG (ASX:KTG) – a material acqusition

 

 

LAST ORDERS

Tech company Optima Technology Group (ASX:OPA), which also was previously known by another name Bill Identity, has received a cash boost, today announcing it has received a research and development tax cash refund of more than $1.3 million.

The company said the refund is in addition to its cash balan of ~$7.2 million as at December 31, 2022.  OPT offers automated and secure data management solutions now focused on net zero reporting along with bill management and procurement planning.

Tech company Netlinkz (ASX:NET) has announced Macquarie Group has become a substantial shareholder.

Netlink’s virtual secure network (VSN) Network-as-a-Service (NaaS) solution allows for secure data transmission.

The company recently announced it would provide its services to the Thailand market and has also signed an agreement with Space X to be only one of  10 global resellers of Starlink terminals.

ETF issuer Global has announced it will soon be launching the first fully systematic index tracking covered call products in the Aussie market. The three covered call strategies to be launched on the ASX include:

AYLD – Global X S&P/ASX 200 Covered Call ETF

UYLD – Global X S&P 500 Covered Call ETF

QYLD – Global X Nasdaq 100 Covered Call ETF

Global X said it has been running covered call strategies in the US for a decade with QYLD and UYLD set to track two of its most successful strategies. QYLD US is its biggest fund in the US with US$6.6 billion in AUM whilst XYLD.US, which it will launch as UYLD on the ASX, has US$2.2 billion in AUM.

QYLD and XYLD have paid monthly distributions for the last eight and nine years running, respectively.

 

 

 

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