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4 small cap stocks soaring on the ASX today

It’s getting to be a depressing week – unless you’re looking to buy shares on the cheap that is!

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has closed down 0.3%, although the S&P/Small Ordinaries (Index: ^AXSO) (ASX: XSO) is again doing its bit, down just 0.15%.

Amongst the small caps, here are 4 stocks that are soaring on the ASX today…

Ethane Pipeline Income Fund (ASX: EPX) saw its shares rocket up 30% to $1.50, after the company announced that its only customer Qenos has reached agreement with its ethane suppliers to supply ethane to Qenos’ Botany operations for a further 5 years from January 1, 2015. The deal removes uncertainty around Ethane’s future revenues. Ethane is still paying shareholders more than 12 cents in share per year, partly franked, equating to a yield of around 8.4%.

Covata Ltd (ASX: CVT) a recent backdoor IPO saw its shares soar from 20 cents to 25.5 cents for a gain of 27.5%. Covata develops and sells patented data security software, including providing security for cloud-based data. With recently announced breaches of cloud security, including Apple’s iCloud, you could imagine that Covata’s products would be in high demand.

Silex Systems Ltd (ASX: SLX) saw its shares jump 13.6% to 71 cents. Much of the rise may well be to do with rising uranium prices. Silex provides a technology to enrich uranium, including the ability to re-enrich depleted uranium. Uranium prices have spiked recently, following Japan’s decision to restart some of its reactors. But we aren’t sure whether this a long term positive trend, or whether the uranium price will drop again.

Imdex Limited (ASX: IMD) has climbed 10% to 55 cents today, but is still down more than 8% for the week. The company’s shares were hammered 9.1% yesterday, as we mentioned in this article, so today’s gain eclipses yesterday’s fall. Imdex supplies drilling fluids and downhole instrumentation to a variety of sectors, including resources and energy, but recent positive results suggest the company may be worth a second look.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

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