Whee. Thud. Repeat. Pic via Getty Images.
Weekly Small Cap and IPO Wrap: Driving bumper cars on a roller coaster
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- The ASX closed flat today, but up for the week
- US meme stock BBBY went soaring – briefly – and landed with a horrifying thud
- Copper hunter Cobre wins the week with a 200% gain
It’s been a reasonably pleasant and positive week for Aussie markets, with the benchmark ASX 200 tracking nicely towards a 0.57% gain over last week’s 7,032 point close.
That result was helped by a hiccupy result today, which saw a steady rise in the morning to 7,135 points – the highest it’s been all week – which slowly evaporated as Friday wore on.
Looking over the sectors, and it’s been happy days for 9 of the 11 contestants, after Energy (+3.34%), Materials (+3.46%) and Consumer Staples (+3.49%) went on a bit of a tear since Monday.
Lagging in the mire for the week (but promising to try harder) were Financials (-0.74%) and Utilities (-1.91%).
IN US NEWS …
Looking overseas, it’s been a bit more tumultuous in the US for a wide variety of reasons, with a big political win for US President Joe Biden, after he officially signed the US$430 billion Inflation Reduction Act into law in a White House event last night.
Biden groaned for about six minutes into the microphone like he’d been both winded and kicked in the nuts, but White House translators have told reporters that Mr President is happy about the passage of the bill, and enjoyed the salmon they served at the dinner very much.
More pressingly, it’s the rampant (but slowly slowing) inflation that continues to give America some pretty severe heartburn, and a host of data has pushed and pulled at investor confidence since Monday.
Highlights from the US data this week include Monday’s lower than expected headline CPI of 8.5% last week, there’s a sense of relief now that inflation might have peaked in the US, leaving some to predict that the Fed might finally pivot its policy following back-to-back 75bp increases in the last two months.
US retailers surprised with earnings that were better than estimates. Walmart climbed 5% after its profit decline was less than forecast. Home Depot rose 4% after beating Q2 earnings expectations and standing by its FY22 guidance.
That data certainly helped the US towards a pretty handy result for the past week, with the NASDAQ adding 1.45% over the week, the S%P up +1.82% and the Dow outperforming its stablemates, up 1.99% over five days.
Meanwhile, for the meme stock du jour Bed Bath & Beyond (NASDAQ:BBBY) it’s been an… interesting week. Tuesday saw the much-vaunted stock hit a stunning +432% peak in trade volume, and it’s soaring from $10.45 on 12 August to a peak of $28.04 on 16 August.
Spoiler alert: It’s since crashed harder than a toddler on the ride home from his best mate’s birthday party, making it from the Bed to the Bath, where it presumably got stuck on the dunny, putting its dreams of Beyond on hold.
It was news that activist investor Ryan Cohen had tipped out of his position in BBBY that hurt its price the most, and its price fell an eye-watering 44% when the rumours he was plotting to sell turned out to be true.
Reddit has done what Reddit does best, turning on Cohen like he has – and I quote – ”been drilling our wives and waving the flag of scumbaggery”. Ouch.
MEANWHILE, IN ASIA …
In Asia, things were peachy-ish for everyone, except for Hong Kong, where they weren’t.
Japan posted a sterling +1.47% for the week, Shanghai did a whole lot of nothing, moving around like it was sleeping through a nightmare but ending the week slightly lower at 3,277.13, down from 3,281.32. Hong Kong took it on the chin this week, however, dropping -1.58%.
The markets in Asia were driven heavily early in the week by unusual data out of China on Monday morning,
While most central banks were hiking rates, the Glorious People’s Central People’s Bank of the People of China People made surprise cuts to interest rates, moving the 7-day reverse repo rate from 2.1% to 2%, with another 10 basis point cut in its medium-term lending facility from 2.85 to 2.75%.
Analysts reckon it shows the Chinese Communist Party is getting pretty concerned about the domestic property market and other indicators like retail sales, which fell to a 2.7% growth vs consensus of 5%.
ASX SMALL CAP LEADERS:
Here are the best performing ASX small cap stocks for August 8 – August 12:
Swipe or scroll to reveal full table. Click headings to sort:
| Code | Company | Price | % Week | Market Cap |
|---|---|---|---|---|
| CBE | Cobre | 0.45 | 200% | $70,734,627 |
| TAS | Tasman Resources Ltd | 0.026 | 117% | $12,080,741 |
| AVW | Avira Resources Ltd | 0.005 | 67% | $10,593,950 |
| ECG | Ecargo Hldg | 0.025 | 67% | $15,381,250 |
| ROO | Roots Sustainable | 0.005 | 67% | $2,998,531 |
| WA1 | Wa1Resourcesltd | 0.19 | 58% | $4,355,251 |
| AMM | Armada Metals | 0.1225 | 53% | $4,000,000 |
| CNJ | Conico Ltd | 0.0545 | 51% | $81,330,113 |
| ALT | Analytica Limited | 0.0015 | 50% | $6,920,702 |
| JAV | Javelin Minerals Ltd | 0.0015 | 50% | $14,181,229 |
| MEB | Medibio Limited | 0.0015 | 50% | $4,134,735 |
| MTM | Mtmongerresources | 0.18 | 50% | $4,688,754 |
| PG1 | Pearl Global Ltd | 0.021 | 50% | $17,038,204 |
| SI6 | SI6 Metals Limited | 0.009 | 50% | $11,905,513 |
| OLL | Openlearning | 0.044 | 47% | $9,325,721 |
| DAF | Discovery Alaska Ltd | 0.07 | 46% | $15,472,194 |
| ODM | Odin Metals Limited | 0.029 | 45% | $16,887,986 |
| ADY | Admiralty Resources. | 0.01 | 43% | $13,035,792 |
| CFO | Cfoam Limited | 0.005 | 43% | $2,935,363 |
| BRX | Belararoxlimited | 0.66 | 42% | $18,954,662 |
| M2R | Miramar | 0.14 | 41% | $7,060,533 |
| RMI | Resource Mining Corp | 0.155 | 41% | $54,362,500 |
| ADS | Adslot Ltd. | 0.014 | 40% | $19,840,308 |
| AOA | Ausmon Resorces | 0.007 | 40% | $6,001,025 |
| ABY | Adore Beauty | 2.03 | 40% | $178,836,544 |
| IRX | Inhalerx Limited | 0.078 | 39% | $13,140,423 |
| A3D | Aurora Labs Limited | 0.054 | 38% | $9,944,536 |
| EMD | Emyria Limited | 0.28 | 37% | $78,375,704 |
| NGY | Nuenergy Gas Ltd | 0.03 | 36% | $44,428,665 |
| PTB | PTB Group Limited | 1.5575 | 36% | $146,283,516 |
| ALO | Alloggio Group | 0.17 | 36% | $17,269,286 |
| MEG | Megado Minerals Ltd | 0.115 | 35% | $12,540,612 |
| DDD | 3D Resources Limited | 0.002 | 33% | $8,863,744 |
| GCR | Golden Cross | 0.012 | 33% | $12,069,817 |
| GES | Genesis Resources | 0.012 | 33% | $9,394,096 |
| KOR | Korab Resources | 0.036 | 33% | $12,846,750 |
| MCT | Metalicity Limited | 0.004 | 33% | $10,376,118 |
| T3D | 333D Limited | 0.002 | 33% | $6,088,593 |
| NUH | Nuheara Limited | 0.265 | 33% | $35,670,785 |
| MCM | Mc Mining Ltd | 0.265 | 33% | $51,390,266 |
| TAR | Taruga Minerals | 0.033 | 32% | $18,497,544 |
| IR1 | Irismetals | 0.75 | 32% | $42,807,050 |
| GCY | Gascoyne Res Ltd | 0.355 | 31% | $151,242,515 |
| HMG | Hamelingoldlimited | 0.19 | 31% | $22,000,000 |
| AV1 | Adveritas Ltd | 0.093 | 31% | $38,724,440 |
| HAV | Havilah Resources | 0.365 | 30% | $115,573,312 |
| NEA | Nearmap Ltd | 1.965 | 30% | $1,010,110,623 |
| ANP | Antisense Therapeut. | 0.13 | 30% | $73,567,338 |
| LIN | Lindian Resources | 0.2725 | 30% | $203,603,283 |
| RTH | Ras Tech | 0.77 | 29% | $33,639,353 |
The week’s big winner among the Small Caps has been Cobre (ASX:CBE), which has had an astonishing 200% rise over the past five days, off the back of news that its fourth drill hole had intersected a broad 69m zone of copper mineralisation which includes a 13m zone of abundant chalcocite mineralisation centred at 310m down hole.
Also performing well, but without any explanation so far, is Tasman Resources (ASX:TAS) which has climbed 117% despite having nothing to announce since well before it took off, and outside of a solid rump of penny dreadfuls, Belalarox (ASX:BRX) has delivered the best result, hauling in an impressive 42% gain.
ASX SMALL CAP LAGGARDS:
Here are the least performing ASX small cap stocks for August 8 – August 12:
Swipe or scroll to reveal full table. Click headings to sort:
| Code | Company | Price | % Week | Market Cap |
|---|---|---|---|---|
| IVO | Invigor Group Ltd | 0.012 | -37% | $1,838,398 |
| MEB | Medibio Limited | 0.001 | -33% | $4,134,735 |
| IBG | Ironbark Zinc Ltd | 0.02 | -31% | $26,142,048 |
| TTB | Total Brain Ltd | 0.04 | -31% | $5,348,845 |
| BYI | Beyond International | 0.31 | -31% | $19,014,460 |
| AQX | Alice Queen Ltd | 0.003 | -25% | $6,348,544 |
| CLE | Cyclone Metals | 0.003 | -25% | $18,350,211 |
| DMG | Dragon Mountain Gold | 0.015 | -25% | $5,905,075 |
| EMT | Emetals Limited | 0.009 | -25% | $7,650,000 |
| T3D | 333D Limited | 0.0015 | -25% | $4,566,445 |
| ANL | Amani Gold Ltd | 0.0015 | -25% | $47,386,882 |
| SHP | South Harz Potash | 0.082 | -25% | $45,222,868 |
| TCG | Turaco Gold Limited | 0.06 | -24% | $25,663,000 |
| ZMM | Zimi Ltd | 0.072 | -24% | $5,618,237 |
| MYG | Mayfield Group Ltd | 0.25 | -24% | $22,646,474 |
| VOL | Victory Offices Ltd | 0.028 | -24% | $4,419,744 |
| TRM | Truscott Mining Corp | 0.037 | -24% | $5,841,210 |
| NMR | Native Mineral Res | 0.1 | -23% | $5,022,100 |
| TIA | Tian An Aust Limited | 0.23 | -21% | $22,518,296 |
| WRM | White Rock Min Ltd | 0.083 | -21% | $15,977,561 |
| SMX | Security Matters | 0.205 | -21% | $36,500,537 |
| LNU | Linius Tech Limited | 0.0055 | -21% | $13,508,198 |
| CFO | Cfoam Limited | 0.004 | -20% | $2,935,363 |
| KEY | KEY Petroleum | 0.002 | -20% | $3,935,856 |
| MBK | Metal Bank Ltd | 0.004 | -20% | $10,431,273 |
| SPX | Spenda Limited | 0.0115 | -18% | $38,179,941 |
| CAD | Caeneus Minerals | 0.005 | -17% | $23,303,025 |
| CBE | Cobre | 0.15 | -17% | $24,811,052 |
| CT1 | Constellation Tech | 0.005 | -17% | $7,356,002 |
| OAR | OAR Resources Ltd | 0.005 | -17% | $10,855,189 |
| SIX | Sprintex Ltd | 0.05 | -17% | $13,735,134 |
| TD1 | Tali Digital Limited | 0.005 | -17% | $7,395,783 |
| AR1 | Australresources | 0.395 | -17% | $102,349,004 |
| ICI | Icandy Interactive | 0.083 | -17% | $110,381,777 |
| OM1 | Omnia Metals Group | 0.145 | -17% | $3,723,600 |
| LBY | Laybuy Group Holding | 0.091 | -17% | $23,953,005 |
| SWP | Swoop Holdings Ltd | 0.4375 | -17% | $61,763,249 |
| JXT | Jaxstaltd | 0.021 | -16% | $7,194,142 |
| CST | Castile Resources | 0.13 | -16% | $31,945,482 |
| HMI | Hiremii | 0.047 | -15% | $4,975,756 |
| LVH | Livehire Limited | 0.255 | -15% | $75,237,391 |
| BID | Bill Identity Ltd | 0.076 | -15% | $19,620,641 |
| MMM | Marley Spoon | 0.29 | -15% | $87,587,400 |
| PSC | Prospect Res Ltd | 0.115 | -15% | $55,471,135 |
| CG1 | Carbonxt Group | 0.11 | -15% | $23,093,842 |
| TYM | Tymlez Group | 0.022 | -15% | $21,766,034 |
| MVP | Medical Developments | 2.03 | -14% | $142,610,114 |
| ADX | ADX Energy Ltd | 0.006 | -14% | $20,959,556 |
| BUY | Bounty Oil & Gas NL | 0.006 | -14% | $9,593,507 |
| DDT | DataDot Technology | 0.006 | -14% | $7,463,217 |
The tale of woe this week belongs to 4DS Memory (ASX:4DS), which has had a most unfortunate result from its development lab.
The memory maker hit a major snag in its push to create new memory tech, announcing that “testing of the memory cells used in the imec megabit memory array showed unexpected problems with scaling the memory cell to small dimensions suitable for Storage Class Memory potential applications.”
In simpler terms, 4DS has fixed a major problem it had, by making an even bigger problem… hence, its price crashed on Tuesday and hasn’t really recovered, leaving a -67% crater on the books.
Next worst, and hinting that having a number in your ticker could be a portent of doom, was 92Energy (ASX:92E), which has been bleeding out slowly all week, despite a bit of cheerleading from the company yesterday, and an improving market for the uranium it’s exploring for.
Disclosure: The author held shares in Cobre at the time of writing this article.
