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These small cap ASX shares are on the rise on Wednesday

The local share market is on course for its second consecutive day of gains on Wednesday with the All Ordinaries up 0.6% just after lunch.

Three shares that have climbed more than most at the small end of the market today are listed below. Here’s why they are on the rise:

The Bubs Australia Ltd (ASX: BUB) share price is up almost 3% to 38 cents. The goats milk infant formula company’s shares have rebounded today after falling heavily on Tuesday on the back of no news. I suspect that some investors are disappointed with the way the company is burning through its cash. In FY 2018 Bubs posted a normalised EBITDA loss of $6.4 million and in the first quarter of FY 2019 it posted an $8.5 million net cash outflow from operating activities despite a jump in sales.

The Celsius Resources Ltd (ASX: CLA) share price is up 21.5% to 8.5 cents despite there being no news out of the cobalt miner. But with its shares recently dropping to a 52-week low, it appears as though bargain hunters are swooping in today. Someone else that has swooped in recently is non-executive director Laurent Raskin. Last week Mr Raskin bought 3.5 million Celsius Resources shares for a total consideration of $191,450 through an on-market trade. This brought his holding to a total of 10.5 million shares.

The Clean TeQ Holdings Limited (ASX: CLQ) share price has jumped 5.5% higher to 40 cents. The nickel, cobalt and scandium company’s shares were trading at a 52-week low of 38 cents on Tuesday and appear to have found buying support today. One person that certainly appears to see value in the company’s shares at these levels is its independent non-executive director Stefanie Loader. According to a change of director’s interests notice, Ms Loader snapped up 50,000 shares last week for a total consideration of $21,250. This follows an even larger purchase of shares made by an insider at the end of last month.

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Returns as of 6th October 2020

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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