The ASX small caps that lit a fire under Stockhead pundits this week

The ASX small caps that lit a fire under Stockhead pundits this week
The ASX small caps that lit a fire under Stockhead pundits this week

Finally, BHP eliminates one of the largest copper miners from the ASX. This raises two scenarios – a) you should take copper seriously, because BHP is; and b) there is now an OZ Minerals sized hole in copper stocks on the ASX.

Barry Fitzgerald

Before you rush to which one is going to meet the needs of copper stock investors -…oh wait, you’ve already jumped into Sandfire and 29Metals…

Alright, for the latecomers, here are some of Garimpeiro’s favorite copper stocks, and by ‘favorites’ we mean ‘junior’, because that’s where the real price action will be by 2025 .

Rex Minerals (ASX:RXM): Trading at 23c mid-week for a market cap of $142m. Close to BHP’s Olympic Dam and OZ’s Carrapateena operations. One of Goldman Sachs’ Top 50 Global Copper Projects.

Hammer Metals (ASX:HMX): Trading at 6.3c for a market cap of $50m. Mt Isa hot building. Made a high-grade discovery in its South Hope prospect, with follow-up exploration now planned.

Caravel Minerals (ASX:CVV): Trading at 22c for a market cap of $96m. Has a copper resource of 2.84 million tonnes in WA’s central wheat belt. A mere 50c US increase in the price of copper would add $1 billion to the net present value of this project.

Coda (ASX:COD): Trading at 25c for a market cap of $36m. Copper-cobalt project quite close to Olympic Dam and Carrapateena. A recent, well-funded study found it to be a “technically viable” 17-year project.

Red Leaf Titles

Director Jonathon Howe

About 70% of Australian households now own at least one dog or cat, and pet owners are big spenders. You can thank Covid for this boom, as well as the associated trend of “humanizing pets”.

Australian pet owners spent over $30 billion on their pets in the last financial year. So who will benefit from this fur baby boom? These actions :

Mad Paws (ASX:MPA): Red Leaf is extremely bullish on MPA, which Howe described as a one-stop shop for pet care. It has 300,000 unique customers and a handy referral partner in Qantas, which owns a 3% share of the business.

Blackmores (ASX: BKL): Yes, pet vitamins are a thing, and BKL offers a line of pet health products through PAW. This covers skin and coat health, joint health, digestive health, ear care and, of course, mental health and wellness.

Toys ‘R’ Us (ASX:TOY): Your pets need playtime too. Toy ‘R’ Us offers a wide range of pet products, from toys to feeding equipment and potty training boards and pet care products. And he’s just struck a deal with UK-based WH Smith High Street – they’re very pampered pooches.

Tamim Asset Management

Head of Australian Equity Strategies Ron Shamgar

For Shamgar, it’s ASX technology stocks, which have had a tough 2022. While the ASX tech sector is down around 39% year over year, a positive sign, the sector has rebounded around 4% in the past month.

“There has been a lot of M&A activity in the tech sector over the past two months,” Shamgar said. So today’s topic is technology takeover targets.

Readytech (ASX:RDY): ReadyTech is a provider of education, workforce and government software and has seen positive cash flow since listing three years ago. And he confirmed a proposal from Australian private equity firm Pacific Equity Partners to acquire it at an offer price of $4.50 per share (~$500 million).

That’s about 15% more than its current price. And Shamgar feels that PEP “could probably offer a bit more” because RDY nicely complements another software management company it owns, called Citadel.

Nitro Software (ASX:NTO): Nitro is a software provider operating in the digital documents and signatures industry and competes with Adobe and DocuSign. It’s courageous.

He just struck a deal with Cascade Parent Limited to acquire 100% of Nitro at $2/share, and there are a few competitors looming. Shamgar says Potentia Capital Management is “happy to pay $2 or even more if they’re able to access due diligence.”

“We think it will potentially end around $2.20 or $2.40.”

Tyro (ASX:TYR): There’s also some heat around potential bidding for this provider of EFTPOS terminals and small business loans. Westpac and NAB have expressed interest, along with the aforementioned Potentia.

With 68,000 EFTPOS terminals, Tyro processes more than $40 billion in transactions annually and is expected to achieve $40 million in EBITDA this year.

Mike Cannon-Brookes’ Grok Ventures owns about 12.5% ​​of Tyro and accepted an offer from Potentia on the grounds that it is $1.50/share.

Any views, information or opinions expressed in the interviews for this article are solely those of the interviewees and do not represent the views of Stockhead. Stockhead does not provide, endorse, or take responsibility for the financial product advice contained in this article.

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. The small caps ASX who have lit fire under the experts Stockhead this week

. ASX small caps lit fire Stockhead pundits week

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