How To Find Good Small And Mid-Cap Stocks To Invest In: A look At PYC, ADT, SPQ, EN1

The huge growth potential of Small and mid-cap companies have made them very popular among investors. The ability of small and mid-cap companies to significantly increase shareholders money by proving large returns, is one of the reasons why many investors prefer small and mid-cap stocks over blue-chip stocks.

In order to determine good small and mid-cap companies, one needs to find the right balance between the risks these companies possess and their growth potential.

The below-mentioned small and mid-cap companies have witnessed positive movements in their share prices during today’s trading session. All these companies have released significant updates today. Let’s take a closer look at these stocks and their recent updates.

Phylogica Limited (ASX: PYC)

The drug development company, Phylogica Limited (ASX: PYC) has witnessed significant improvement in its share price over the last few months. The company’s stock has risen by around 100% in the last six months as on 24 September 2019.

PYC’ Share Price Performance (Source: ASX)

For the financial year ended 30 June 2019 (FY19), the company reported an operating loss of $4.079 million as compared to the loss of $7.43 million incurred in FY18.

On 25 September 2019, the company announced that it has completed a time-course evaluation of the effectiveness of a drug incorporating its Cell Penetrating Peptide (CPP) delivery technology, which is used for treating blinding diseases of the eye.

A drug molecule utilising PYC’s delivery technology has achieved a sustained effect over a 4- week time period in the eye of a mouse after a single low dose, demonstrating that the effective treatment can be achieved with significant time intervals between drug administration. This is a highly encouraging result for the company and a positive indication for achieving an acceptable dosing regimen in humans when using PYC’s technology to treat blinding eye diseases.

At market close on 25 September 2019, PYC’s stock was trading at a price of $0.046, up by 4.545% intraday, with a market capitalisation of circa $107.49 million.

Adriatic Metals Plc (ASX: ADT)

Emerging metal and mining company, Adriatic Metals Plc (ASX: ADT) has released the results from a preliminary metallurgical test work programme conducted on samples of ores from the Rupice deposit and the Veova?a Veovaca deposit.

The results are demonstrating excellent metallurgical recoveries and concentrate grades from representative samples collected across the Rupice and Veovaca deposits.

Expected payability adjusted recoveries from all concentrates for Rupice are:

(Source: Company Reports)

In August 2019, the company received assay results from nine drill holes from the programme at Rupice demonstrated that the high-grade mineralisation continues north into the new concession area and remains open.

Notable intersection in the Rupice North licence extension are:

  • 38m @ 6.2% Zn, 3.8% Pb, 174g/t Ag, 1.9g/t Au, 0.4% Cu, and 33% BaSO4 from 208m, including 12m @ 13.2% Zn, 7.8% Pb, 154g/t Ag, 2.4g/t Au, 0.6% Cu
  • 20m @ 2.0% Zn, 2.8% Pb, 96g/t Ag, 0.3g/t Au and 0.6% Cu from 254m

The company recently appointed highly experienced Mr. Paul Cronin as MD and CEO of the company.

In the last six months, ADT’s stock has provided a return of 15.03% as on 24 September 2019. At market close on 25 September 2019, ADT’s stock was trading at a price of $1.045, up by 5.025% intraday, with a market capitalisation of circa $150.53 million.

Superior Resources Limited (ASX: SPQ)

Brisbane based copper-lead-zinc and gold explorer, Superior Resources Limited (ASX: SPQ) has announced a positive start to exploration drilling at its wholly owned Nicholson Project in north west Queensland.

Diamond drilling underway at the Nicholson West target (Source: Company Reports)

The company has completed the drilling of two diamond core drill holes which have confirmed the presence of substantially thick (up to 340m) Mount Les Siltstone, a prospective target horizon that is known within the area to host Mount Isa style deposits.

The company is encouraged by the presence of thick Mount Les Siltstone and sulphide mineralisation that is consistent with a SEDEX system. The company believes that this is a positive indication for a sedimentary-exhalative (SEDEX) style of mineralisation, examples of which are the McArthur River and Mount Isa mines.

Following the release of this news, the stock price of the company uplifted by around 12.5% during the intraday trade.

Last month, the company completed a capital raising via a placement of 82,000,000 fully paid ordinary shares at an issue price of $0.008 per new share.

The company intends to use the proceeds from the Placement to:

  • Conduct preliminary sampling programs at the Victor Project;
  • Provide general and corporate working capital
  • Conduct access preparations and a magnetometer survey at the newly granted Big Mag tenement at the Greenvale Project

At its Nicholson Project, the company recently executed an earn-in and joint venture agreement with South32 Group Operations Pty Ltd. The joint venture arrangement involves significant drilling of several large-scale lead-zinc-silver targets. o Land access procedures finalised.

In the past six months, SPQ’ stock has provided a return of 33.33% as on 24 September 2019. At market close on 25 September 2019, SPQ’s stock was trading at a price of $0.009, up by 12.5% intraday, with a market capitalisation of circa $5.87 million.

engage:BDR Limited (ASX: EN1)

engage:BDR Limited (ASX: EN1) has provided a summary of events related to a recent voluntary pause and successful reactivation of the company’s largest publishing partner.

The company’s engineering team designed a solution to an industry-wide creative/ad categorisation challenge and after several iterations, its engineering team deployed a robust proprietary solution which enabled EN1 to safely reactivate its largest publisher.

The new technology also creates an opportunity to potentially license the solution to several industry peers facing similar challenges. Extensive testing has proven the efficacy of this technology and it has been deployed in full production. EN1’s largest publisher is live again at full volume.

Today, the company has also released a prospectus in which it is offering 13.75 million unlisted options (New Options), each with an exercise price equal to 110% of the closing bid price of the company’s listed ordinary shares on ASX on the last trading day immediately prior to the issue date of the New Options.

The purpose of the Offer is to facilitate the secondary trading of shares upon exercise of New Options. It is to be noted that no funds will be raised from the issue of New Options. Funds raised upon exercise of New Options will be applied to meeting the working capital requirements of the company at the time of exercise.

As announced on 23 September 2019, the company has also entered into an agreement with Alto Opportunity Master Fund SPC – Segregated Master Portfolio B (Alto) for the issue of zero coupon convertible amortizing securities (ZCS). The company intends to issue an initial ZCS with a face value of US$2,060,000 and an issue price of US$1,750,000.

In addition to the initial ZCS, the company is also proposing to issue the following securities to Alto under the Agreement:

  • 13.75 million unlisted options (being the New Options which are offered under this Prospectus); and
  • 28.5 million fully paid ordinary shares which may be used by Alto to offset the conversion or amortisation of the ZCS (Collateral Shares).

In the last six months, EN1’s shares have decreased by 28.57% as on 24 September 2019. At market close on 25 September 2019, EN1’s stock was trading at a price of $0.026, up 4% intraday, with a market capitalisation of circa $14.58 million.


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