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WAM Microcap Limited (ASX:WMI) is a listed investment company incorporated in Australia. The Company has an objective to provide its Shareholders with exposure to undervalued growth companies listed on the ASX having a market capitalisation of less than $300 million at the time of acquisition using Wilson Asset Management's research-driven and market-driven investment processes.
WAM Microcap Limited has recently released the Half-yearly report for the period ended 31 December 2018. As per the report, the company has incurred an operating loss of before tax of $12.876 million and also an operating loss post-tax of $8.446 million. The loss for the subject period reflects that there is increased volatility in the regional equity markets as well as the performance of the portfolio of investments over the period of mentioned six months.
The investment portfolio fell by 6.2% in the six months which ended on the 31st of December 2018. However, the portfolio still outperformed the benchmark, i.e., the S&P ASX small ordinaries accumulation Index by 6.50%. The investment portfolio had an average cash weight of 26.70% considering the liquidity risk and to ensure that the risk can be appropriately managed and mitigated as the fund enters the year 2019.
The fundâs before tax Net Trading Assets fell 9.40% for the six months and came in at $1.19 per share. The total shareholderâs return witnessed a fall on account of the mounting volatility in the equity markets and the dismal performance seen in the investment portfolio.
The Board of the company has already paid a final dividend amounting to 2 cps fully franked and also a special dividend of 2 cps fully franked to its shareholders during the period. Moreover, a 100% franked interim dividend of 2.25 cps has been declared by the Board and thus shall be paid as on the 26th of April 2019.
The managementâs market outlook was extremely bearish at the end of 2018 and felt that the US federal reserve would keep on raising the interest rates going forward, and the tightening will continue at the extraordinary levels. Also, the leading economic indicators pointed toward the slowing economy. However, the recent developments & economic scenarios have led the Federal Reserve holding the interest rates and also indicated that the tightening might be over for now.
Now, letâs have a glance at the companyâs stock performance and the return it has posted over the last few months. The stock last traded at a price of $1.27, up by 0.395 % during the dayâs trade with a market capitalisation of ~$ 177.77 Mn as on 25 February 2019. The counter opened the day at $ 1.265, reached the dayâs high of $ 1.280 and touched the dayâs low of $ 1.260 with a daily volume of ~130,930. The stock has provided a Year Till Date return of 0.40% & also posted returns of -14.53%, -1.17% & 0.80% over the past six months, three & one-months period respectively. It had a 52-week high price of $ 1.570 and touched 52 weeks low of $ 1.190, with an average volume of 103,109 approximately.
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