These small cap shares have started the week on a high

The market may be sinking lower today, but not all shares have started in the red.

Three small cap shares that have stood out with strong gains today are listed below. Here’s why they are on the rise:

The AuMake International Ltd (ASX: AU8) share price has climbed 4% to 26 cents. This morning the daigou company announced the execution of a binding term sheet to acquire the relevant leases, staff, trademark, member databases, and all associated property associated with the operation of Kiwi Buy. The company will pay $300,000 in ordinary AuMake shares at an issue price of $0.25. It will also reimburse up to $500,000 of inventory subject to stock-take. This seems like a bit of a bargain buy considering preliminary financial due diligence indicates sales of $18 million over the last 12 months through Kiwi Buy’s five store retail network in Sydney. All stores are profitable post labour and occupancy expenses.

The De Grey Mining Limited (ASX: DEG) share price has jumped almost 8.5% to 19.5 cents after the gold explorer provided an update on its drilling at the Mt Berghaus operation. According to the release, shallow drilling no deeper than 60 metres has uncovered high-grade gold zones, many which include “bonanza” high grade rates. Management believes that these results augur well for the next resource estimate update. While I’m not a fan of gold miners at present due to rising rates, any investors looking for an up and coming gold miner might want to take a closer look at De Grey Mining.

The iSelect Ltd (ASX: ISU) share price has zoomed 10% higher to 60.5 cents despite there being no news out of the product comparison company. But with its shares down over 72% since this time last year, I suspect some bargain hunters are swooping in today. Which would not be surprising because prior to today its shares were trading below the price target placed on its shares by Credit Suisse earlier this month. The broker reduced its target price to 58 cents from $1.95 after iSelect downgraded its earnings to such a degree the broker labelled it a contender for downgrade of the year. While its shares do look cheap, I would hold off an investment until there are signs of improvement in its performance.

The Disruptors: 3 Small Cap Companies to Back in 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.