• The ASX200 makes it four gains in a row
  • The small cap index remains uninspired despite some strong individual performances
  • HRL and 4DX deliver huge returns on Tuesday

 

The benchmark XJO is up by 0.6%. The little XEC index is not.

The ASX 200 has kept its head well above water thanks largely to resources and energy, materials and utilities – these sectors are all up over 3%.

Those performances have taken the sting out of weakness right across the consumer names, tech and comms sectors.

Wall Street fell overnight, led by another crashy performance over at the tech-heavy Nasdaq. Energy stocks lifted after unrest in Libya put the squeeze on production over there, but with Bubs screaming in the states and HRL Holdings under offer, it’s still a rich Tuesday bonanza of stories about shares to share.

Elsewhere, more houses cost a million dollars in Australia than ever before and that all happened in the last 12 months.

AMP reckons house prices will give between 10 to 15% this year, but chief economist Dr Shane Oliver says not to worry, because we’re all so indebted that the RBA won’t need to whack us so hard with the rate stick.

If the cash rate hits 2.5% that’ll just about double the average debt interest payments as a share of household income, Doc O says.

“Interest rates (rises) are now nearly three times as potent compared to 30 years ago.”

That’s when this was king from the album Nevermind with the message pretty much still on song.:

 

TODAY’S BIGGEST SMALL CAP WINNERS

(Stocks highlighted in yellow rose after making announcements during the trading day).

Scroll or swipe to reveal table. Click headings to sort.

 

HRL Holdings Limited (ASX: HRL) says it’s on the happy end of an unsolicited, non-binding indicative offer from ALS Limited (ASX:ALQ) to acquire 100% of the ordinary shares of HRL for $0.16 cash per share.

HRL, a diversified environmental and laboratory service provider says talks are only preliminary and no agreement has been landed and there’s no guarantee one will. So keep your hair on – and honestly – what’s the rush when your stock is up about 70% on the chatter.

In response to the NBIO bid, the stock formerly and betterly known as Hot Rock entered into a Process Deed on 7 June under which ALS is being provided with the opportunity to undertake due diligence and negotiate transaction documentation on an exclusive basis to 20 July 2022.

HRL has agreed to certain due diligence, exclusivity, notification and break fee provisions during this period. So it’s open up the hood and see what makes the lab services company tick.

And lookout mum, the infant milk formula company of the hour, Bubs (ASX:BUB) continues to make hay shone in the states after sneakily getting the jump on it’s bigger and suddenly looking more ungainly competition, signing on the American retail giant Target.

Bubs will be getting window shop space at an initial 280 Target stores, but the US retailer has some 1940 outlets to play with. So happy days.

Bubs Australia says its products will now be available in the four largest retailers of infant formula in the US.

News of a national contract with the I-MED Radiology Network has had a similar effect on the price of 4D Medical (ASX:4DX), which has surged more than 50%.

On top of the new contract, the companies have also agreed to join forces and create a Lung Centre of Excellence, which is excellent news for lungs.

Dr Andreas Fouras is the 4DMedical Managing Director and CEO, I’ve interviewed him maybe 15 times and he’s probs one of Australia’s hardest working ASX bosses – and you know they’re ALL workaholics:

“I am delighted to announce today’s landmark agreement for 4DMedical which represents a significant milestone for the Company. Expansion of our proven capability nationwide means many more people will be able to access the latest technology in respiratory imaging. Beyond putting our innovative technology in the reach of more people, this deal represents a significant opportunity to drive revenue for the Company. Additionally, this agreement creates a framework for the rapid commercialisation of future 4DMedical products.”

Voila. He also says the deal opens up poss delivery of 4DMedical’s lung imaging technology at I-MED’s Australia-wide network of more than 250 clinics

The ASX releasing some 1,520,250 of Butn’s (ASX:BTN) shares from escrow on July 6 has put some spark into the BNPL fintech investor’s lives, adding about 43% to its price.

And finally, in the resources space, the Aussie-built, West African focused gold explorer, Golden Rim Resources (ASX:GMR) is divesting its Burkina Faso gold assets for US$15m cash to private mining company BAOR SARL.

The four staged cash payments over 12 months don’t even need the nod of stockholders, with the first payment of US$600,000 due within 15 business days.

Golden Rim says it will pour the proceeds into its Kouri and Babonga gold projects and maybe fast track some of those circa 930,000oz gold out of its Kada Project in Guinea.

“Securing this deal to divest our non-core Burkina Faso gold assets is a fantastic outcome for Golden Rim,” MD Craig Mackay said. “While we have been focussed on our transformational new Kada oxide gold project in Guinea, our projects in Burkina Faso have been sitting on the backburner and are attracting little market value.”

With a resource base of 2Moz gold and extensive upside, Mackay added the Burkina assets offer an exciting opportunity for an emerging Burkinabé mining company, such as BAOR SARL.

Shares in GMR were up just a tad under 30% at around 3pm in Sydney.

Also bloody useful in getting to know your goldies – is this cracking read – The Small Cap +1Moz Gold Club: A Guide, Part 1

It’s even better than the sequel, which is unreal too.

 

 

TODAY’S BIGGEST SMALL CAP LOSERS

(Stocks highlighted in yellow fell after making announcements during the trading day).

Scroll or swipe to reveal table. Click headings to sort.

Meanwhile BWX (ASX:BWX), the owner of the Sukin range of beauty products is going to need to break out the concealer, after a bruising selldown on the heels of its earnings downgrade and plans to source a further $23m from the market to add ballast to a thin balance sheet.

 

ANNOUNCEMENTS YOU MAY’VE MISSED

International Graphite (ASX:IG6) has started drilling at its resource at Springdale in southern Western Australia. The crew there is poking around an area previously investigated by Comet Resources (ASX:CRL), and it’s the first time IG has hit the tools on that site since acquiring it in April this year, in its quest to create a battery graphite supply chain in Western Australia – an admirable plan that should see one of the world’s most-adored food, wine, surfing and fishing destinations finally on the map. 

KGL Resources (ASX:KGL) has revealed the results of its extraordinary general meeting, held to decide whether to issue 6,500,001 shares to KMP Investments, which the latter had already contributed $2.405 million. There’s no indication of precisely how lengthy, or indeed vigorous, debate on the proposal was – but the result was an emphatic 99.48% in favour to go ahead. There was, however, a 0.49% vate against, because there’s clearly just no pleasing some people. 

And a couple of quickies on the way out the door today, with Integral Diagnostics (ASX:IDX) telling us that 549,804 fully paid ordinary shares currently held under voluntary escrow will be released on 31 July 2022, and Kingsgate (ASX:KCN) says its landed Wayne Schiller, Paul Mason and Daniel Weeks to flesh out the senior shirts for the reopening of its Chatree Gold Mine in Thailand later this year. Congratulations to everybody!

 

Trading Halts

Volt Resources Limited (ASX:VRC) – Capital raising

Electro Optic Systems Holdings Limited (ASX:EOS) – Capital raising

Cyprium Metals Limited (ASX:CYM) – Capital Raising

Corella Resources Ltd (ASX:CR9) – Capit… wait!  I’m getting some late mail… This one’s because there’s news about HPA test work results from Corella’s Tampu Kaolin Project.

Field Solutions Holdings Limited (ASX:FSG) – There’s a substantial long-term customer contract announcement in the pipeline…

Medlab Clinical Limited (ASX:MDC) –  And we’re raising capital