The Australian share market has had a positive start to the week and is notably higher at lunch on Monday.
Three shares at the small end of the market that have caught the eye with strong gains today are listed below. Here's why they are on the rise:
The Biotron Limited (ASX: BIT) share price is up 12% to 18.5 cents on Monday despite there being no news out of the drug development company. But with its shares crashing significantly lower at the end of last week, it appears that bargain hunters are swooping in today. Biotron has caught the eye of investors this month after releasing positive results from trials of its BIT225 drug. While it certainly is a promising company, heavy insider selling last week could be a sign that its shares have topped out now.
The Bubs Australia Ltd (ASX: BUB) share price is up over 5% to 49.5 cents following the release of its first quarter update. During the quarter Bubs saw its revenue increase 416% on the prior corresponding period to $8.98 million. This was driven largely by the inclusion of the acquired CapriLac business which completed in the second quarter of FY 2018. In addition to this, a 90% increase in the sales of its Bubs products due to growing sales in Coles and Woolworths Group Ltd (ASX: WOW) supermarkets and through the daigou and cross border ecommerce channels also supported its growth.
The Paragon Care Ltd (ASX: PGC) share price is up over 3.5% to 71 cents. This morning the healthcare services company announced the acquisition of Total Communications for an initial purchase price of $27.5 million. This seems like a good deal for Paragon Care as Total currently generates revenue of around $16 million, with earnings before interest, tax, depreciation and amortisation (EBITDA) of around $5 million per annum. Management expects the acquisition to be "in excess of 10%" earnings per share accretive in FY 2019 and beyond.
