Closing Bell: Security (really) Matters as small caps had no right to kill Tuesday dead, but they did

• ASX 200 rises but pretty softly, eh
• Aussie Small Caps index steals 0.8% on energy, resources strength
• Consumer Confidence is low, BTW, but who cares when CPI drops tomorrow
• Security Matters now!

Firstly, we’ve ended higher in Emerging Co world.

That squadron of ASX small caps are dead-set legends, and often find a way to get us over the line.

So relax a moment. We’ve some big market moving stuff on for tomorrow.

We’ve got a pretty key headline (CPI) inflation read, ready to rumble and the consensus POV is a quarterly rise of 1.8% in Q2, which as Diana Mousina told me but hours earlier takes the annual inflation rate to 6.2%, its highest level since 2001.

And as Mr Tony Sycamore over at City Index warned me earlier as well:

“A print much higher than that followed by a hawkish Fed would raise the chances that the RBA opts for a 65 or 75bp rate hike when it meets next Tuesday.”

Yikes.

In far less important but strangely therapeutic Tuesday arvo economic indication –  to this week’s consumer confidence read – I really am starting to enjoy these.

So. The good news today is the ANZ-Roy Morgan (capital C) Consumer Confidence index lifted for a second straight week.

The bad news is – confidence is so deeply depressed it’s back where we were at the onset of the COVID-19 pandemic circa early 2020. I myself was maudlin.

Now that’s done – the Emerging Companies (XEC) index is ahead by 0.8%, the benchmark is up a little less, because it’s not as flexible, durable (Resources heavy) or as much fun as that tough little list of tough little companies.

The anti-counterfeit tech legends at Security Matters (ASX:SMX) are leaving the ASX to merge with a big American special purpose acquisition company (SPAC) on the Nasdaq in a fairly crazy deal that will increase the SMX per share value by more than 15 times. They’ve gained about 155% on the news.

Here’s a few more less-little ones that’ve done pretty good:

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks [intraday]:

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

Firstly, the stock price is +150% higher today after Security Matters (ASX:SMX), has officially entered into a business combination agreement and accompanying scheme implementation deed with the Nasdaq-listed Lionheart III Corp (NASDAQ:LION).

The new arrangement will see SMX list on the Nasdaq via a newly-formed Irish company (to be named SMX Ireland!), with existing SMX shareholders set to receive consideration via a scheme of arrangement consisting of an aggregate of 20,000,000 ordinary shares of SMX Ireland.

Following in the footsteps of Zip Co (ASX:ZIP) and former bride to be Sezzle (ASX:SZL) a whole flotilla of forlorn buy now, pay later companies are doing pretty well on Tuesday.

Sezzle is up HEAPS. Zip Co  about 20% (after reporting a June qtr 27% increase in revenue and a pretty fab lift in customer number’s to 12 million. They’re pulling out of some ill-advised foreign adventures too.) Also, Splitit (ASX:SPT) is up 16% and Humm (ASX:HUM) almost 4%.

In the world of resources, Polymetals Resources (ASX:POL), is abso killing it on abso zero news – and low volumes – a phenomenon, Gregor notes, we’ve seen quite a bit of lately, and which is no doubt causing consternation among certain elements of the ASX regulators.

Semiconductor processing equipment firm Revasum (ASX:RVS) is up on the news Scott Jewler is the new president and CEO.

Dart Mining (ASX:DTM) is up strongly after entering into an earn-in with SQM Australia’s wholly-owned subsidiary Sociedad Química y Minera de Chile, giving SQM the right (but not the obligation) to sole fund exploration worth $12 million over the next six years at the Dorchap Lithium Project.

ASX SMALL CAP LOSERS

Here are the best performing ASX small cap stocks [intraday]:

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

Nitro Software (ASX:NTO), is bleeding out after investors were miffed it failed to hit previous guidance – despite lifting year on year annual recurring revenue (ARR) of US$57 million to US$60 million, that’s yYoY growth of as much as 30%.

But, it still wasn’t the ARR promised –  which was US$64m to US$68m, YoY targeted growth of as high as 47%.

ASX ANNOUNCEMENTS YOU MAY’VE MISSED 

Montem Resources (ASX:MR1) has announced that it has completed the pre-feasibility engineering and design, cost estimates and project economics for the Pumped Hydro Energy Storage at the awesomely-named TM-Rex project in Canada.

Montem says that the study reckons there’s plenty of scope for the Tent Mountain Mine to be transitioned into a a renewable energy complex, in light of the pre-feasibility study’s “compelling” findings which have identified a combination of “no fatal flaws and strong economics” for the plan.

Mega-Ounce Gold Club member Big River Gold (ASX:BRV) says it’s got some fresh and exciting exploration drilling results from its Borborema Resource project extension in Brazil.

Highlights of the results are:

• 33m at 4.27g/t Au, including 8m at 11.12g/t Au and 6m at 4.64g/t Au
• 41m at 1.58g/t Au, including 10m at 2.21g/t Au and 3m at 7.69g/t Au, and; 
• 44m at 1.38g/t Au, including 7m at 2.45g/t Au

TRADING HALTS

Blue Energy (ASX:BLU) – Bake sale. Capital Raise. Call it what you will.

De.mem (ASX: DEM) – Capital raise to fund a program to find new ‘forever homes’ for lost or abandoned punctuation.

Godolphin Resources (ASX:GRL) – Capital raise for funds to purchase new things for that lady on the horse who has no clothes.

Rimfire Pacific Mining (ASX:RIM) – There’s an update in relation to receipt of funds from Golden Plains Resources in relation to the Fifield Project Earn-in on the way.