MENU

These small cap ASX shares have started the week with strong gains

The Australian share market has started the week on a disappointing note and is notably lower in early afternoon trade.

Not all shares have been dragged lower with the market, though. The three small cap shares listed below have started the week with strong gains. Here’s why:

The AVZ Minerals Ltd (ASX: AVZ) share price has raced 5% higher to 8.2 cents despite there being no news out of the lithium-focused mineral exploration company. Last week the company’s shares surged higher momentarily following a positive update on its scoping study. That update revealed that it has made positive revisions to its scoping study that means estimates for its free on board (FOB) cash costs have been reduced to US$297 per tonne. This was 16% lower than its initial estimate. I suspect the market is sceptical that this will prove to be an accurate estimate.

The Telix Pharmaceuticals Ltd (ASX: TLX) share price has climbed 3.5% to 73 cents after the biopharmaceutical company announced the acquisition of Advanced Nuclear Medicine Ingredients (ANMI). According to the release, the company has acquired the Belgium-based pharmaceutical company for €3.15 million in Telix shares priced at a premium of $0.83 per share and $2 million in cash. Management believes the transaction will provide the company with exposure to the rapidly growing demand for prostate imaging services outside the United States. I think this looks like a great move from management and could be a big boost to its revenues over the coming years.

The Yojee Ltd (ASX: YOJ) share price has pushed 4.5% higher to 7.2 cents after the logistics software provider released a trading update. According to the release, Yojee has had a positive month with six new SME customer additions and a major upgraded agreement achieved so far in November. In addition to this, it advised that Sinotrans Integrated Logistics Australia has now deployed the company’s partner model across partners in four states of Australia and this growth is expected to continue over the coming months. While this sounds promising, the release was light on financials. I would suggest investors wait to see what impact this has had on its cash receipts at its next quarterly update.

Missed these gains? Then check out these small cap shares that have been tipped as buys.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Atlassian.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro owns shares of TELIXPHARM DEF SET. 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!