The S&P/ASX Small Ordinaries (Index: ^AXSO) (ASX: XSO) has had a solid start to the week. At lunch the small cap index is up 0.3% to 2,830.5 points.
Three small caps that have stood out with solid gains today are listed below. Here's why they are on the up:
The Base Resources Limited (ASX: BSE) share price has pushed 6% higher to 26.5 cents. Today's increase is likely to be related to a change of director's interest notice which was filed this morning. According to the notice, non-executive director Ms Diane Radley was busy buying shares last week. She picked up 500,000 shares through on-market trades between May 9 and May 11 for an average price of 25 cents per share.
The Specialty Fashion Group Ltd. (ASX: SFH) share price has rocketed 50% higher to 57 cents after receiving an approach from Noni B Limited (ASX: NBL) for some of its assets. According to the release, Noni B has agreed to acquire the assets and businesses of Millers, Katies, Crossroads, Autograph and Rivers from Specialty Fashion for total consideration (on a cash free, debt free basis) of $31 million in cash. Specialty will retain the City Chic business. Although the businesses are making a loss at the moment, Noni B's management appears confident that it understands why this is happening and expects to turn things around successfully.
The Titomic Ltd (ASX: TTT) share price has surged almost 17% higher to $2.77 after the release of its second major announcement in the space of a week. Following last week's deal with Callaway Golf, this morning Titomic announced a memorandum of understanding with Italian shipbuilder Fincantieri Australia. The 12-month agreement will see Fincantieri evaluate the use of Titomic Kinetic Fusion in its manufacturing activities. I think this latest agreement highlights how promising Titomic's technology is.
