3 Small caps nearing 52-week high- GRR, PAI, WQG

  • Jul 26, 2020 AEST
  • Team Kalkine
3 Small caps nearing 52-week high- GRR, PAI, WQG

Summary

  • During the March quarter, GRR implemented and expanded on its business continuity response plan to focus on tackling coronavirus outbreak.
  • For the quarter ended June 2020, PAI in its investment update mentioned that the Company has provided a return of 7% for the period and 14.6% for the year.
  • The Board of WQG is set to pay a final dividend of 2.0 cents per share on 30th September 2020 (for the period ending 30 June 2020), indicating positive performance of the Company in FY20.

While investing in a stock market, an investor comes across various options to park his/her hard-earned money in large cap, mid-cap, and small cap companies. An investment in large and mid-cap entities safeguards an investor from the volatility of market and provides minimum loss to an investor’s portfolio, as these companies are mature and financially stable.

When it comes to investing in small caps, they offer growth potential as these companies also pay dividends, and an investor can experience his capital to multiply with time.

In the following article, we will glance at 3 ASX-listed small-cap stocks that are trading near their 52-week high levels-

Do Read: Dividend and Growth Story of Few Small-cap Stocks.

Grange Resources Limited

Grange Resources Limited (ASX:GRR) is engaged in the mining, processing, and sale of iron ore.

Recently, GRR updated the market with operational and financial performance for the quarter ended 31st March 2020, wherein it stated that Pellet production for the period went down to 589kt against 650kt for the quarter ended December 2019.

  • GRR reported a decline in Pellet sales to 557kt as compared to sales of 732kt for December 2019 quarter.
  • During the quarter, GRR recorded a rise in average received prices to US$118.34/t versus US$104.04/t for the December 2019 quarter.
  • Unit cash operating cost increased to A$99.28/t against the A$90.17/t of the previous quarter because of a decline in concentrate production to 600kt from 700kt noted in the last quarter.
  • During March 2020 quarter, GRR made significant outlays of around A$16.32 million on the capital projects, which includes progression of the underground exploration decline in North Pit and purchases of dozers.
  • GRR paid a fully franked final dividend of 1.0 cent per share during the quarter.
  • The Company closed the March 2020 quarter, with cash and liquid investments of A$168.98 million and trade receivables of A$40.25 million.

The priority of GRR revolves around the safety and well-being of its workforce. For this, the Company has executed and grown its business continuity response plan to address the COVID-19 outbreak.

At the close of market session, on 24th July 2020, the stock of GRR stood flat at $0.270. The stock of GRR has moved up by of 28.57% and 10.20% within last three and six months, respectively. The stock of GRR is inclined towards its 52-week high level of $0.277.

Platinum Asia Investments Limited

Platinum Asia Investments Limited (ASX:PAI) is an ASX listed investment company, which provides capital growth across the long-term through investing primarily in listed securities of companies in the Asian Region ex Japan throughout all sectors.

On 21st July 2020, the Company reported estimated weekly pre-tax net tangible asset backing per share of $1.2183. In another update, PAI notified the market with quarterly investment performance, wherein, it stated that PAI has provided return of 7.0% for the quarter and 14.6% for the year.

Do Read: How these financial stocks have performed amid COVID-19?

The Company’s portfolio includes strong Asian companies, which proved as a key contributor such as Reliance Industries (+55%), LG Chem (+61%) and Sea Ltd (+96%). In addition, stocks benefiting from a recovery in Chinese domestic tourism also performed well, including China International Travel Service (+129%) and Huazhu (+22%).

Net Sector Exposure (Source: Company’s Report) 

The Company mentioned that global equity markets showed an extraordinary rally over the quarter period despite the global economy had just begun to recover from the depths of the largest economic setback in modern economic history.

On the outlook front, PAI stated that starting valuations are a key determinant of future returns. Asian stocks are presently trading on low valuations as compared to their long-term averages. PAI would keep on utilising capital in appealing and resilient businesses that are under-appreciated by the markets.

By the close of trading session on 24th July 2020, the stock of PAI was unchanged at $1.050. The stock of PAI has moved up by of 8.25% and slipped down by 4.98% within last three and six months, respectively. The stock of PAI is inclined towards its 52-week high level of $1.12.

WCM Global Growth Limited

WCM Global Growth Limited (ASX:WQG) invests into a diversified portfolio of worldwide listed quality high growth entities sourced from developed and emerging markets outside of Australia.

Recently, on 21 July, WQG reported estimated unaudited Net Tangible Asset backing (NTA) per share after tax standing at $1.362 (as on 17 July).

On 16 July, the Board of WQG declared a final dividend amounting to 2.0 cents per share, indicating positive performance of the Company in FY20. This final dividend would be franked to 50% at the 30% tax rate and WQG will pay this final dividend on 30th September 2020. It is anticipated that any interim dividend in FY21 will also be franked to minimum 50%.

In the month of June 2020, the portfolio of the Company has delivered a return of -0.45%, outperforming the benchmark MSCI All Country World (ex-Australia) Index return of -0.56%. The portfolio of the Company has managed to deliver returns of 2 more than the benchmark over the previous one, three, six- and twelve-month periods, as well as over three years and since inception.

At the close of session on 24th July 2020, the stock of WQG stood flat at $1.300. The stock of WQG has moved up by of 15.04% and 6.12% within last three and six months, respectively. The stock of WQG is inclined towards its 52-week high level of $1.33.

 


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