- ASX 200 down -0.4%
- Small cap index loses -1.7%
- Way2VAT: killing it in the VAT space
The small caps index has been smashed on Monday as the local Energy and Resources Sectors took fright from what is easily the scariest social unrest across China since 1989, and that culminated in the June 4th Tiananmen Square massacre.
The ASX200 benchmark was down 0.4% at 4pm AEST. The Emerging Companies Index (XEC) had lost 1.7% when the bell rang.
Resources were already on thin ice.
Crude oil prices instantly regressed way back to levels not seen since Christmas last year – when we were still getting ripped off – but not as badly. With violence on the streets around China, forward-looking demand for key commodities is on immediate hiatus.
It’s likely the Aussie dollar, the Aussie commodities complex and Apple Inc (among other riskier assets) are about to cop a truncheon to the head and likely wake up to find themselves on a familiar firing line after various commentators prematurely speculated regarding zero-COVID, Chinese tech stocks, a domestic retail recovery, property stimulus and a reemerging Chinese economy – none of which matter if the tanks return.
Also of little import, Dr Philip Lowe’s belated apology this morning for the Reserve Bank’s bullish tenor in the years leading up to record breaking inflation.
The tune the RBA took during it’s historic pandemic-period of stimulative policies, really did leave them dancing in the aisles all the way to the mortgage shop.
Back then inflation really was just a quirky, transitory distraction, whose pants didn’t need pulling up until well into 2024.
Looking for positives and still bullish on Aussie equities is James Gerrish and his team of stock pickers at Market Matters.
Last week’s benchmark rise of well over 100 points was all part of the plan for Gerrish, who particularly enjoyed the “solid performances from the unsung heroes in the Utilities and Real Estate Sectors.”
Gerrish says that while last week was “a mixed bag” as lithium and ESG stocks experienced some “fairly aggressive” profit taking, sometimes it’s simply time to pull the fish in.
“Falls are not always “profit taking” but the ESG stocks have run so hard in 2022 that the strong likelihood is most of the selling has resulted in a positive contribution to investors bottom line.
Are we still on for Christmas?
“No change, we still believe Australian equities can rally into Christmas but it’s hard to imagine a significant upside move from current levels with all-time highs now only ~5% away,” Gerrish says. “If we see a sharp dip below 7100 the risk/reward will again look attractive for short-term players into Christmas.”
ASX SMALL CAP LEADERS
Here are the best performing ASX small cap stocks:
Swipe or scroll to reveal full table. Click headings to sort:
| Security | Description | Last | % | Volume | MktCap |
|---|---|---|---|---|---|
| CDT | Castle Minerals | 0.029 | 38% | 20,647,573 | $20,989,353 |
| TSK | Task Group Holdings | 0.375 | 34% | 477,770 | $99,344,508 |
| IEC | Intra Energy Corp | 0.008 | 33% | 2,024,167 | $3,634,690 |
| DXN | DXN Limited | 0.006 | 33% | 21,876,955 | $7,745,917 |
| AVM | Advance Metals Ltd | 0.013 | 30% | 300,000 | $4,820,441 |
| ODY | Odyssey Gold Ltd | 0.049 | 26% | 7,622,653 | $23,987,864 |
| CFO | Cfoam Limited | 0.0025 | 25% | 141,076 | $1,467,681 |
| YPB | YPB Group Ltd | 0.005 | 25% | 202,619 | $1,626,185 |
| M24 | Mamba Exploration | 0.135 | 23% | 7,216,159 | $4,639,250 |
| COY | Coppermoly Limited | 0.011 | 22% | 23,861 | $19,745,612 |
| HIQ | Hitiq Limited | 0.035 | 21% | 159,168 | $3,281,529 |
| INV | Investsmart Group | 0.3 | 20% | 110,964 | $34,899,800 |
| W2V | Way2Vatltd | 0.03 | 20% | 1,879,799 | $4,446,105 |
| CHK | Cohiba Min Ltd | 0.006 | 20% | 731,500 | $8,138,304 |
| MHC | Manhattan Corp Ltd | 0.006 | 20% | 2,201,272 | $7,631,393 |
| AWV | Anova Metals Ltd | 0.019 | 19% | 7,339,448 | $25,569,507 |
| RSH | Respiri Limited | 0.045 | 18% | 689,956 | $30,446,981 |
| NC1 | Nico Resources | 0.73 | 18% | 414,350 | $54,513,501 |
| GRV | Greenvale Mining Ltd | 0.11 | 17% | 267,103 | $39,641,888 |
| AOA | Ausmon Resorces | 0.007 | 17% | 4,668,823 | $5,143,736 |
| GES | Genesis Resources | 0.007 | 17% | 300,000 | $4,697,048 |
| XTC | Xantippe Res Ltd | 0.007 | 17% | 3,235,519 | $48,871,379 |
| MHI | Merchant House | 0.065 | 16% | 15,000 | $5,278,924 |
| TG1 | Techgen Metals Ltd | 0.11 | 16% | 542,873 | $5,201,151 |
| MBKDA | Metal Bank Ltd | 0.037 | 16% | 587,698 | $8,368,793 |
It’s always nice when a local lad comes good and Aussie-listed Way2VAT (ASX:W2V), is one when it comes to the global ‘automated VAT claim and return solutions’ sector.
W2V on Monday has reported a”strong finish to the financial year” with an annualised gross transaction volume run rate of $19.47 million, which includes transactions coming from its recent acquisition of DevoluIVA.
The numbers represent a 43% increase on the previous 12 months (FY21 $13.57 million), and a very handy 170% gain on FY20 ($7.24 million).
Way2VAT CEO and Founder, Amos Simantov, reckons the gun performance was mainly due to operating conditions for business travel returning to pre-COVID levels, increasing usage through platform partners and enterprise customers, as well as the “successful integration of the recent DevoluIVA acquisition and the broadening of the product suite with the introduction of the Smart Spend Debit Mastercard.”
“Way2VAT is expecting a strong finish to FY22, traditionally a strong time of year, with business travel beginning to normalise,” he said.
Even better the company expects a cut in the time tax authorities take to process claims, (returning to the pre-COVID average of 7.5 months).
“This processing time, from when we submit our claims to tax authorities (and recognise our fee as revenue) to when we receive it (and it appears in our cash receipts) had blown out to 15 months in several jurisdictions during COVID lockdown periods.
“We have seen a significant increase in transaction volume through business travel expenses and accounts payable and VAT claims following the European summer,” he added.
Simantov reckons the DevoluIVA is also progressing well.
“We are already recognising significant transaction volume and revenue through their national network and looking to fully harness the full product suite into Spanish-speaking markets with similar accounts payable, expense and VAT structures.”
The share price is up heaps.
Also doing very well on Monday is TASK Group (ASX:TSK) after delivering some lovely half-year results for the six months to 30 September 2022.
In fact the company says 1H23, brought about “a transformation in the Group’s earnings performance and growth outlook.”
This what I see:
- Revenue growth to $26.6m (+97% on pcp)
- Good turnaround in adjusted EBITDA to +$2.0m ( from -$7.0m pcp)
- Cash balance of $24.2m looks like it’s doubled
Shares on a tear.
ASX SMALL CAP LAGGARDS
Here are the least performing ASX small cap stocks:
Swipe or scroll to reveal full table. Click headings to sort:
| Security | Description | Last | % | Volume | MktCap |
|---|---|---|---|---|---|
| T3D | 333D Limited | 0.001 | -50% | 4,976 | $6,378,635 |
| PRM | Prominence Energy | 0.001 | -33% | 11,941 | $3,636,913 |
| WBE | Whitebark Energy | 0.001 | -33% | 256,073 | $9,697,329 |
| CCX | City Chic Collective | 0.69 | -31% | 15,624,304 | $230,760,486 |
| QPM | Queensland Pacific | 0.1225 | -30% | 52,863,133 | $305,610,886 |
| TSC | Twenty Seven Co. Ltd | 0.0015 | -25% | 9,393,398 | $10,643,256 |
| CBH | Coolabah Metals Limi | 0.09 | -25% | 28,887 | $4,044,000 |
| HIO | Hawsons Iron Ltd | 0.091 | -24% | 24,270,490 | $88,926,354 |
| AEV | Avenira Limited | 0.028 | -22% | 31,008,565 | $44,244,596 |
| DW8 | DW8 Limited | 0.002 | -20% | 2,817,771 | $7,753,807 |
| G50 | Gold50 Limited | 0.2 | -18% | 108,508 | $13,951,035 |
| FFF | Forbidden Foods | 0.041 | -18% | 754,298 | $5,170,155 |
| CI1 | Credit Intelligence | 0.19 | -17% | 131,626 | $19,204,807 |
| ATV | Active Por Group | 0.1 | -17% | 79,581 | $18,771,525 |
| PYR | Payright Limited | 0.055 | -17% | 113,371 | $5,162,138 |
| GLH | Global Health Ltd | 0.21 | -16% | 177,953 | $14,500,845 |
| AFA | ASF Group Limited | 0.042 | -16% | 26,500 | $39,628,689 |
| MIL | Millennium Grp Ltd | 0.43 | -16% | 20,170 | $23,933,412 |
| EM1 | Emerge Gaming Ltd | 0.011 | -15% | 1,363,262 | $14,576,053 |
| HRE | Heavy Rare Earths | 0.14 | -15% | 65,046 | $9,815,508 |
| EOS | Electro Optic Sys. | 0.565 | -15% | 1,260,874 | $113,871,944 |
| TLG | Talga Group Ltd | 1.41 | -15% | 1,341,542 | $551,640,738 |
| NES | Nelson Resources | 0.006 | -14% | 5,080,872 | $4,120,160 |
| PUA | Peak Minerals Ltd | 0.006 | -14% | 24,478 | $7,289,595 |
| NGL | Nightingale Intel | 0.13 | -13% | 174,854 | $14,512,307 |
TRADING HALTS
Atturra (ASX:ATA) – Capital Raise.
Pilot Energy (ASX:PGY) – Capital Raise.
Metallica Minerals (ASX:MLM) – Capital Raise.
Microba Life Sciences (ASX:MAP) – Announcement regarding a strategic investment and commercial partnership.
Viking Mines (ASX:VKA) – Announcement of a potential Project Farm-in Agreement
Kogi Mining (ASX:KFE) – Acquisition and capital raising