The All Ordinaries (Index: ^AXAO) (ASX: XAO) has had a positive morning of trade and sits 0.3% higher at the time of writing.
While this is undoubtedly a solid gain, it is nothing compared to some of the gains being made by small cap shares today.
Three that have caught my eye with stronger than average gains are listed below. Here's why they are on the rise:
The Argosy Minerals Limited (ASX: AGY) share price has rebounded from yesterday's 28% decline with an 9% gain to 23.5 cents. Yesterday the lithium-focused mineral exploration company's shares were sold off after results from testing at its Rincon operation in Argentina revealed that its lithium carbonate (LCE) was industrial grade and not battery grade. However, management has sought to clear things up today with a detailed response to shareholder questions. Importantly, it believes that the sample that was tested will prove to be battery grade once its gas has been connected and the washing process has been completed. There is roughly US$3,000 per tonne difference in the prices of the two grades. I would continue to avoid Argosy until the grade and true value of its asset is known.
The Noni B Limited (ASX: NBL) share price has zoomed 7% higher to a 52-week high of $3.00 despite there being no news out of the retailer. However, a change of substantial holding disclosure from WAM Capital Limited (ASX: WAM) reveals that the listed investment company has been increasing its holding in Noni B. Its stake has now grown to approximately 8.2% from 7.1%. While Noni B is no longer the bargain buy it was 12 months ago, I still see a lot of value in its shares after its recent acquisition and can't say I'm surprised to see WAM Capital increasing its position.
The Zelda Therapeutics Ltd (ASX: ZLD) share price has climbed 4.5% to 11.5 cents after the biotechnology company provided an update on its paediatric brain cancer research project with the Telethon Kids Institute in Perth. Initial results have shown that increasing doses of pure tetrahydrocannabinol (THC) or pure cannabidiol (CBD) reduces cancer cell viability in cell-based assays. Additional studies are planned to further understand the nature of this effect. This is undoubtedly promising news, but there is still a long road ahead and Zelda is unlikely to be generating revenues for some time.
