These 3 small cap ASX shares are racing higher on Thursday

The Jatenergy Ltd (ASX:JAT) share price is one of three at the small end of the market racing higher on Thursday. Here's why…

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The market may have dropped lower today but not all shares have been dragged into the red.

Three small cap shares that have caught the eye with solid gains on Thursday are listed below. Here's why they are racing higher:

The Credible Labs Inc CDI (ASX: CRD) share price has jumped 6% to $1.01 following the release of the U.S. consumer finance marketplace operator's latest quarterly update. In the third quarter Credible Labs grew its quarterly Closed Loan Volume to an all-time high of US$355 million. This was a 56% increase on the prior corresponding period and an 89% lift on the previous quarter. During the quarter the company's user accounts reached a cumulative total of 1,086,000, compared to 910,000 at the end of June.

The Jatenergy Ltd (ASX: JAT) share price has rocketed 21% higher to 7.5 cents. The infant formula company's shares have been on fire this week after the release of its quarterly update. That update revealed a sudden and major uptick in its performance during the last quarter. Jatenergy saw its cash receipts from sales increase from $320,000 in the June quarter to a massive $10.7 million in the September quarter. Though it is worth noting that product manufacturing and operating costs rocketed to $15.4 million during the quarter, leading to a net operating outflow of $5.5 million. This leaves Jatenergy with little cash in its bank account, which could mean a capital raising will be necessary in the near future.

The Zip Co Ltd (ASX: Z1P) share price has rebounded from yesterday's heavy selloff with a 3% gain to 95.5 cents. Yesterday its shares were hammered after the likelihood of a Senate inquiry into payday lending, debt collection, and buy now pay later platforms increased. This morning Zip responded to the media reports by stressing that its business model does not rely on late payment fees or customers not being able to afford their repayments to drive revenue. It also emphasised that there are no hidden fees and all consumer costs are transparent, upfront, and clear. As such, management "believes it is very well placed to satisfy any potential increased regulation with little or no disruption to business."

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.

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