Lunchtime ASX small cap wrap: who’s climbing fast today

Here are the key ASX small cap winners and losers at lunchtime Wednesday Aug 1:

The ASX Small Ords was up 0.25 per cent or 7 points to 2836 by 12.35pm AEST.

GOING UP

Home security provider Scout Security (ASX:SCT) had a win today, snagging a deal to distribute its products through US giant Stanley Black & Decker.

Stanley — which is listed in New York with a $US23 billion market cap — is the world’s second biggest home security company with 500,000 buildings under its protection.

Stanley will pay Scout an upfront fee of $US300,000.

Scout, which is valued at $15 million, expects the five-year deal “to start materially contributing to Scout revenue starting in the March 2019 quarter”.

The stock jumped 26 per cent to an intraday high of 22c in early Wednesday trade.

Summit Resources (ASX:SMM) jumped 67 per cent to 20c after fellow uranium play Paladin Energy (ASX:PDN) revealed a takeover in an all-scrip deal valued at a 68.3 per cent premium.

Paladin is already Summit’s largest shareholder with an 82 per cent stake.

The news comes less than a week after Canadian uranium heavyweight Cameco indefinitely suspended production at its McArthur River mine, which sent ASX small cap uranium players on a run.

Paladin is offering Summit shareholders one of its shares for each one Summit share held, which prices the deal at about 20.2c – well above the 12c Summit closed at on Tuesday.

This values Summit at around $44 million.

Paladin is worth about $342 million. Its shares were steady at 20c at midday.

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Jacka Resources (ASX:JKA) jumped 67 per cent to 0.5c today after fellow oil explorer Pura Vida Energy (ASX:PVD) became a major shareholder in the $2.7 million microcap.

Pura bought 7 per cent of Jacka for about $154,000.

Both explorers have interests in Africa. Pura, which is worth about $13 million, was unchanged at 5.1c on Wednesday morning.

Resource Generation (ASX:RES) rose 24 per cent to 4.7c after finalising a contract to build a plant that can process 15 million tons of raw coal per year at its South African mine.

ResGen is developing the “Boikarabelo” coal mine in South Africa’s Waterberg region. The Waterberg accounts for some 40 per cent of the country’s known coal resources.

Here are the best performing ASX small cap stocks at 12.30pm Wednesday, Aug 1:

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GOING DOWN

Property marketplace iBuyNew Group (ASX:IBN) fell after revealing a 22 per cent drop in new property sales this year to 127 compared to 163 last year.

iBuyNew runs the iBuyNew.com.au online marketplace which helps buyers find, compare and buy new property.

Transactional value fell 3 per cent to $81.3 million.

Cash receipts came in at $6.7 million for the year and the group burned $634,000 in operating costs.

“The quarter’s results reflect the ongoing tough market environment, however I am confident the initiatives we have implemented will result in improved performance in FY19,” said chief Alex Caraco.

The shares fell 25 per cent to 0.3c, valuing the company at about $8 million. They’ve traded between 0.2c and 1.2c over the past year.

Here are the worst performing ASX small cap stocks at 12.30pm Wednesday, Aug 1:

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