July Winners Column: The outlook has never been more uncertain, and these stocks dominated
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In July, ‘second wave’ fears materialised, markets wavered, and unpredictability reigned supreme.
Unlike February and March (COVID-19 fighters), or May and June (gold) our top 50 ASX small caps for July were a mixed bag.
Of course, gold, which is threatening to push higher through the $US2,000/oz mark in the coming quarters, was well represented.
But there was — for the first time, in a long time — battery metals representation, as well as a few COVID-19 adjacent stocks, and a bunch of small caps with better-than-expected quarterly results.
HERE’S THE TOP 50 SMALL CAPS FOR THE MONTH OF JULY >>>
Scroll or swipe to reveal table. Click headings to sort.
|Code||Name||Price 31 July||% Return||Market Cap|
|MNS||MAGNIS ENERGY TECHNOLOGIES||0.23||187.50||152.95M|
|NZS||NEW ZEALAND COASTAL SEAFOODS||0.03||180.00||20.38M|
|LCY||LEGACY IRON ORE||0.00||150.00||31.24M|
|NAE||NEW AGE EXPLORATION||0.01||116.67||11.55M|
|AQC||AUSTRALIAN PACIFIC COAL||0.19||103.12||9.84M|
|MRD||MOUNT RIDLEY MINES||0.00||100.00||5.37M|
The world is imploding and its earnings season. Major tech companies and gold miners aside, investors probably weren’t expecting much in the way of good news.
But a number of small cap companies surprised to the upside.
Like online marketing firm Pureprofile (ASX:PPL), which surged after announcing a 500 per cent improvement in net cash from operating activities.
Or Cybersecurity firm Tesserent (ASX:TNT), which excited investors with earnings growth and hinted at the possibility of acquisitions.
Recruitment platform AD1 Holdings (ASX:AD1) had a good run, announcing its first-ever cashflow positive quarter with a $217,000 profit.
And Cycliq (ASX:CYQ), which makes bike dash-cams, also jumped on a positive quarterly update.
Gold is an investment safe haven. It remains in high demand because no one knows what bad thing will happen next.
Second market crash? American civil war? Zombies? It’s a crapshoot and the goldies are thriving.
And there could be light at the end of the tunnel for our beleaguered battery metals (lithium, nickel, cobalt, graphite) explorers and miners.
Europe is throwing mountains of cash at electric vehicle production, as industry leader Tesla — now the most valuable car brand in the world — continues to shatter production, revenue, and share price forecasts.
Tesla bigwig Elon Musk also did the nickel market a solid by calling for miners to produce more of the metal.
This was good timing for struggling nickel-cobalt play Australian Mines (ASX:AUZ), which has been offered potential financial support from the Queensland government to help develop the $1.5bn Sconi cobalt-nickel and scandium project.