• 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:

Wordpress Table Plugin

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
Wordpress Table Plugin

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.