These small cap shares have stormed higher today

The Money3 Corporation Limited (ASX:MNY) share price is one of three in the small cap space storming higher today…

| More on:
treasury wine shares

It hasn’t just been large cap shares such as BlueScope Steel Limited (ASX: BSL) and Ramsay Health Care Limited (ASX: RHC) pushing higher today, there have been some big moves in the small cap space as well.

Three that caught my eye are listed below. Here’s what sent them storming higher:

The Cash Converters International Ltd (ASX: CCV) share price is up 4% to 39 cents. This morning the company released its half-year results which revealed a net profit after tax of $9.4 million. This was ahead of guidance and up 2.2% on the prior corresponding period. In addition to this, Cash Converters finished the half with a total loan book of $155.7 million, up 35.2% from 30 June 2017. Pleasingly, management anticipates a strong second-half leading to further growth in net profit after tax. Whilst I have been impressed with the company’s transformation, I still think it is a little too soon to get overly excited and would suggest investors hold off for a couple more halves of consistent growth.

The Money3 Corporation Limited (ASX: MNY) share price has pushed 7% higher to $1.82 after another strong half from the financial services company resulted in a 13.3% increase in half-year net profit after tax to 15.5 million. Once again it was the strong demand experienced by the company’s secured auto loans business that was the key driver of its impressive performance. Money3 finished the half with a gross loan book of $234.6 million, an increase of 24.7% year on year. Despite its strong growth, management estimates its share of the market is still only 2% and aims to increase this to 3% within the next 12 months. I think Money3 has a long runway for growth ahead of it and is a great option for investors today.

The Over The Wire Holdings Ltd (ASX: OTW) share price is up 8.5% to $3.04 and is within sight of its all-time high. Investors have clearly been impressed with the telecommunications and IT service company’s half-year results release this morning. That release revealed a 72% increase in total first-half revenue to $24.05 million and a 62% lift in first-half EBITDA to $4.9 million. This growth was generated both organically and through the acquisition of VPN Solutions which completed on November 1 2017. Pleasingly, it looks like more of the same in the second-half. Management advised that it expects VPN Solutions to contribute significantly in the second-half of 2018, as the company further realises the value of its acquisitions. This could make it one to watch.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Money3 Limited and Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Investing