POP is top, RAP is not: last week’s small cap winners and losers
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Safety syringe maker Medigard’s patient shareholders must have gotten a little giddy this week when shares rocketed 145 per cent.
After disappointing sales of the syringes, Medigard (ASX:MGZ) told shareholders in November it was canvassing “a number of options to increase the value of the company”.
Was one of those options looking promising?
Alas not yet, a company spokesperson told Stockhead.
The price went on a run when a mere $237 worth of shares changed hands at 1.5c on Monday. A few trades later, the price was at 2.7c – up from 1.1c.
The $2.5 million company hopes to have news soon, the spokesperson said.
Therefore the mantle for small cap winner of the week rightfully passes to Primary Opinion (ASX:POP).
Winners: Best performing small cap ASX stocks (Aug 7-11)
POP’s shares more than doubled in price after it announced former billion-dollar Bellamy’s boss Laura McBain had agreed to take the reins.
The shares finished on Friday at 3.4c – a 106 per cent premium on the 1.8c they were fetching at the start of the week.
The former Telstra business woman of the year was ousted from Bellamy’s in January, shortly after its share price halved following weaker-than-expected sales of its infant formula in China.
But investors can’t take their eyes off the billion-dollar valuation Bellamy’s reached under McBain’s stewardship.
Primary ended the week with a market cap of $24.4 million, up from $11.1 million on Monday. Some 175 million shares changed hands during the week.
This week’s other big movers included ZipTel which jumped 75 per cent this week after announcing a revenue share agreement with app maker Space Digital Media (SDM).
However the big share price gains attracted the attention of the ASX. Ziptel’s (ASX:ZIP) shares were suspended “pending the Company’s response to queries put to it by the ASX”.
SDM earlier agreed to integrate Ziptel’s ZIPt technology into Convo – a social-enabled work messaging app that competes alongside the likes of Slack and HipChat.
ZipTel handed over the rights to its technology in return for royalty payments of 10-20 per cent of Convo’s net revenue. SDM hopes to jump from £1.1 million ($A1.8 million) revenue in 2018 to £15.9 million in 2019.
The week’s other green arrows included Force Commodities (ASX:4CE) which soared 69 per cent to 4.1c after announcing it would buy into lithium, tin and tantalum projects in the Congo.
Close behind was Norwood (ASX:NOR) which jumped 67 per cent after signing a technology partnership with US data manager Veritas and announced a public trial of its “World Wi-Fi” network which displays wifi signals using augmented reality.
Losers: Worst performing small cap ASX stocks (Aug 7-11)
At the other end of the table sits app maker ResApp (ASX:RAP).
Boss Tony Keating told Stockhead the poor trial results that destroyed his company’s share price were because he underestimated the challenge of testing inside a hospital emergency department.
About 40 per cent of the company’s shares on issue changed hands in 48 hours.
Emperor Range Group (ASX:ERX) dived 53 per cent after announcing its biggest shareholder, China Jinwo Holdings, had sold all its shares in off-market transactions
Adavale Resources sank 39 per cent after admitting it would continue with negative operating cashflow “for the time being”. Director Yuk Chor Choi resigned during the week.
Meanwhile shares of CSG (ASX:CSV) lost 34 per cent following a $55 million write-down of goodwill associated with print assets.