Australian shares have fallen 22 per cent over the last month, but this offers fresh opportunity. Here’s three solid tips for investors in these uncertain times, courtesy of InvestSMART chairman Paul Clitheroe.

Don’t sell at the bottom. “COVID-19 may be a new bug, but since 2000 we’ve seen a number of serious viral outbreaks … each had a negative impact on global equity markets,” Clitheroe says.

“But once the virus subsided – as it did in every case, markets took off. The catch is that to enjoy the lion’s share of the gains, you had to be in the market.”

>>Scroll down for today’s significant small cap Winners & Losers

Rebalance your portfolio. That means selling one type of investment and buying others so your portfolio “continues to reflect your goals and tolerance for risk”.

“Red ink has been spilled across the market, and while some sectors have fared better than others, it’s likely that your asset allocation is completely out of whack,” he says.

Embrace dollar cost averaging. Dollar cost averaging means steadily drip-feeding money into the market by investing a set amount each fortnight, month or quarter. It’s a great way to hedge your portfolio against market ups and downs, Clitheroe says.

“It’s understandable that you may not feel confident tipping a chunk of cash into the market at present,” he says.

“The beauty of rebalancing is that it encourages us to buy low and sell high, and shares and exchange traded funds are offering exceptional value right now.”

 

SMALL CAP WINNERS

Here are the best performing ASX small cap stocks at 12pm Thursday April 2:

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

CODE COMPANY PRICE % CHANGE MARKET CAP
QFY Quantify Tech 0.002 100.00% $1.9M
RHY Rhythm Biosciences 0.1 81.82% $10.1M
AVE Avecho Bio 0.003 50.00% $3.15M
CGB Cann Global 0.008 33.33% $19.9M
AZI Energia Minerals 0.004 33.33% $8.8M
WOA Wide Open Agriculture 0.18 33.33% $12.7M
HRR Heron Resources 0.026 30.00% $11.2M
NZK New Zealand King Salmon 1.645 25.57%
TSC Twenty Seven 0.005 25.00% $7.4M
WML Woomera Mining 0.01 25.00% $1.3M
CUX Crossland Strategic Metals 0.005 25.00% $5.1M
KNM Kneomedia 0.015 25.00% $12.2M
SMR Stanmore Coal 1.005 22.56% $256.1M
MSI Multistack Intl 0.011 22.22% $1.0M
BNO Bionomics 0.042 20.00% $22.9M
RMI Resource Mining Corporation 0.006 20.00% $1.8M
JAN Janison Education 0.3 20.00% $53.6M
MTH Mithril Resources 0.006 20.00% $2.9M
IPT Impact Minerals Ltd 0.006 20.00% $9.3M
GNM Great Northern Minerals 0.006 20.00% $2.6M
MTC Metalstech 0.055 19.57% $6.4M
RHT Resonance Health Ltd 0.13 18.18% $59.9M

 

Rhythm Biosciences (ASX:RHY)which is developing a blood-based test to replace the government funded faecal test for colorectal cancer, is up +125 per cent to 12c per share on a positive update.

“WOA EXPERIENCING STRONG SALES MOMENTUM THROUGH RETAIL & ONLINE CHANNELS,” bellowed Wide Open Agriculture (ASX:WOA) yesterday.

COVID-19 has not yet had an impact on the business which is experiencing “continued sales momentum”. It was enough to send the stock up ~30 per cent in morning trade.

Stanmore Coal (ASX:SMR) is again the subject of a takeover bid from Indonesian company and major shareholder Golden Investments, which is offering $1 per share for the Aussie met coal miner.

In 2018, Stanmore was the target of a failed takeover bid by Golden Investments, which tabled a 95c cash per share offer.

At the time, Regal’s Tim Elliott said the offer “grossly undervalued” Stanmore and was rejected by the substantial majority of shareholders.

Golden Investments reckons investors should just take the new cash offer due to the “challenging economic environment with an uncertain time horizon for recovery”.

 

SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks at 12pm Thursday April 2:

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

CODE COMPANY PRICE % CHANGE MARKET CAP
SER Strategic Energy Resources 0.003 -25.00% $2.9M
SW1 Swift Networks 0.015 -25.00% $2.9M
ONE Oneview Healthcare 0.032 -21.95% $5.6M
ADD Adavale Resources Ltd 0.012 -20.00% $2.1M
EGR Ecograf Ltd 0.033 -17.50% $10.2M
PGX Primero 0.145 -17.14% $25.0M
NZS XTV Networks 0.015 -16.67% $8.0M
MCA Murray Cod AU 0.105 -16.00% $58.8M
LSH Lifespot Health 0.039 -15.22% $3.4M
TLM Talisman Mining 0.063 -14.86% $11.8M
NOX Noxopharm 0.225 -16.67% $36.6M
CNJ Conico Ltd 0.006 -14.29% $2.3M
IMM Immutep 0.12 -14.29% $47.0M
RIM Rimfire Pacific Mining NL 0.003 -14.29% $4.5M
MEB Medibio Ltd 0.006 -14.29% $6.0M
LPI Lithium Power 0.13 -13.33% $34.2M
DRX Diatreme Resources Ltd 0.007 -12.50% $13.0M
IME ImExHS 0.021 -12.50% $24.7M
ATL Apollo Tourism & Leisure 0.15 -11.76% $27.9M
SDI SDI Ltd 0.75 -11.76% $86.2M
PYG PayGroup 0.515 -11.21% $35.5M
The views, information, or opinions expressed in the interviews in this article are solely those of the interviewees and do not represent the views of Stockhead. Stockhead does not provide, endorse or otherwise assume responsibility for any financial product advice contained in this article.