The market may have dropped into the red today but not all shares have followed it lower.
Three shares at the small end of the market making strong gains today are listed below. Here’s why they are pushing higher:
The Gage Roads Brewing Co Limited (ASX: GRB) share price has risen 4% to 13 cents after the brewing company announced the completion of its acquisition of Matso’s Broome Brewing for an initial cash consideration of $13.25 million. In addition to this, the company advised that it has rebranded its expanding sales and marketing team to Good Drinks. Management believes this structure will provide a framework that can house and represent each of its brands, maintaining each brand’s meaningful and unique characteristics.
The Mitula Group Ltd (ASX: MUA) share price has risen 2.5% to 65 cents after the global classifieds group announced that it has had a record start to the second half of FY 2018. Mitula recorded revenue of $8.5 million for July and August, up 56% on the prior corresponding period. Management advised that there were a record 93.1 million visits to the company’s network of sites during the month of August, up from 91.2 million in July. While this is positive news, I feel it could have waited for its next quarterly update. Furthermore, while things are good now, conditions can change very quickly for Mitula due to the way its business relies heavily on Google Search algorithms. In light of this, I would suggest investors avoid its shares.
The Rand Mining Ltd (ASX: RND) share price has rocketed 44% to $3.46. This morning the mineral exploration company announced that the board of independent directors, excluding managing director and substantial shareholder Anton Billis, has resolved to pay a $1.25 per share fully franked special dividend. According to the release, following the payment of this special dividend, Rand will remain well-funded to pursue its mining and exploration activities. This dividend works out to be a massive yield of 36% based on the current share price.
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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.