The market may have had a disappointing start to the week but that hasn't stopped some shares from posting solid gains.
Three small cap shares that have caught the eye today are listed below. Here's why they are on the rise:
The Beadell Resources Ltd (ASX: BDR) share price has climbed 3.5% higher to 6.2 cents. Investors appear to be snapping up shares in the gold miner to take advantage of a friendly takeover approach by Great Panther Silver. The deal, which was announced last month, will see Beadell shareholders receive 0.0619 shares of the US-listed Great Panther Silver for every share they own. Based on the current exchange rate, this equates to a consideration of approximately 7.2 cents per share. This is a 16% premium to the current share price.
The Netcomm Wireless Ltd (ASX: NTC) share price has pushed 4% higher to 82 cents despite there being no news out of the broadband equipment company. However, prior to today its shares were down 41% in the space of six weeks after it provided disappointing guidance for FY 2019. I suspect that some bargain hunters have swooped in today during the market selloff. Which might not be a bad idea as management expects the downturn to be short lived and believes things will improve greatly in FY 2020.
The SKY and Space Global Ltd (ASX: SAS) share price has stormed 5% higher to 6.2 cents after announcing five new binding memorandum of understanding (MoU) agreements with telecom operators. According to the release, agreements have been signed with companies located in Canada, India, the Caribbean, and North and South America. Management expects these agreements to act as a pre-curser to signing definitive revenue generating agreements in due course. I'm not a big fan of MoU announcements and would suggest investors wait to see if they advance to something more definitive before acting on them.
