4 fresh smallcap ideas

Livewire Equities

With reporting season dominating in recent weeks, here are four small cap ideas you may have missed. They include two small medtech stocks from Simon Shields and Harley Grosser, and two junior resources plays from Paragon and Foster Stockbroking. Click below for four fresh ideas.

A microcap medtech stock about to take off

Harley Grosser, Capital H Management

This stock is not your typical value investment and it does not have a track record of consistent free cash flow generation. Rather it is a case of mispriced growth, and the market loves a growth story. With any growth company you want to get on board at a price that factors in as little potential upside as possible, though that needs to be balanced by the fact that it is very easy to be too early. It won’t be a straight-line trajectory upwards and the company has a lot of hard work still in front of them. But this looks like it is a business on the cusp of some impressive growth, of which the share price is yet to starting factoring in: (VIEW LINK)

A local lithium junior now backed by global major

Paragon Funds Management

SQM (NYSE; US$10.4b market cap) last month announced its intention to buy-in to Kidman’s world-class Mt Holland (MH) project. SQM has confirmed it will develop MH as an integrated spodumene-refinery project, developing both the upstream mine and concentrator operation (essentially fully funded by SQM) and with a local downstream refinery: (VIEW LINK)

Lynas leveraged to the rare earths recovery

Foster Stockbroking

Lynas is an integrated rare earth mining and processing operation with a rare earth mine in Mt Weld, WA, and a processing plant in Malaysia. It has diligently undergone significant technical improvements, and is now running reliable neodymium praseodymium (NdPr) oxide production of 5,200ktpa, prices of which have recovered sharply. NdPr prices have now almost doubled in recent months, as a result of tightening global supply, as well as increasing incremental demand from electric vehicle and wind turbine manufacturers: (VIEW LINK)

Catapult primed for significant growth

Simon Shields, Monash Investors

After returning home from a recent trip to the US, Simon Shields, Portfolio Manager, reflects on the significant growth opportunities for a Melbourne based company that’s leading the way in athlete analytics for some of the most elite sporting dynasties in the world. (VIEW LINK)


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