Small caps

The Australian small-cap sector is currently trading at a whopping 30 per cent discount, according to new research from Datt Capital, with history suggesting strong returns are likely to follow as active managers continue to show their skill in this buzzing space.

With reporting season already revealing earnings misses, valuation pullbacks are creating opportunities in high-quality small caps, according to DNR Capital’s Sam Twidale. Investors should look through short-term risk and select from sectors where fear and uncertainty prompt mispricings.

After a string of high-profile incidents, the sale of Australia’s largest listed cybersecurity company, Tesserent (ASX:TNT) to French multinational Thales is a reminder of the value in carefully selected small cap stocks.

Significant global and domestic pressures have created a particularly challenging environment for small businesses, which are facing higher costs and lower revenue as “long-tail effects” of the pandemic, the peak industry body says in new research.

While small and medium enterprises remained resilient in March, concerns about rising input costs and the growing chances of recession have businesses toning down their hiring plans.

The shortage of infant milk formula (IMF) in the United States has become the number one issue facing families. Supply had already been under pressure for the past two years from pandemic induced logistic constraints. Then Abbott Laboratories (NYSE: ABT) – which supplies 50% of the US market – shut its manufacturing facility in Sturgis,…

Fertilizer and explosives chemicals company Incitec Pivot (ASX:IPL) has posted a better than expected profit result boosted by a rise in fertiliser prices and strong demand for mining explosives coming from the company’s Dyno Nobel business. The strong rebound in demand for mining explosives comes on the back of a global push for decarbonisation. The…

After months of central banks kicking the can down the road, inflation is beginning to entrench itself. Businesses are reporting rising input prices. Households are being hit with bigger bills. And markets continue to swing wildly. Here are five ASX shares to protect your portfolio from inflation. Supermarkets don’t exactly scream sexy, exciting, or invest…

The Zip Co Ltd (ASX: ZIP) share price is under the spotlight after releasing its FY22 third-quarter update. Growth continues for Zip The buy now, pay later business told investors how it performed in the three months to 31 March 2022. Group quarterly revenue increased by 39% year on year to $159.2 million. This came after transaction…

The ASX All Technology Index is down 23% in 2022 in large part to fears about rising inflation, interest rates and the ongoing invasion of Ukraine. The selling has been indiscriminate. High-quality shares such as Xero are down over 30% while more nascent businesses like Zip are down 75%. Despite the carnage in ASX tech shares, the…

With the world stepping-up its efforts to decarbonise sooner rather than later, parts of the economy have been pushed into rapid transformation to become sustainable. The knock-on effect of Covid-19 and the Ukraine crisis has brought about supply chain disruptions and skyrocketing demand in the metals primarily used in electric vehicle batteries. And for those…

The Webjet Limited (ASX: WEB) share price has both positive and negative factors going for it right now. Which one is right? Webjet is best known for being an online travel agency (OTA). But it also operates the WebBeds business, which is a ‘business to business’ (B2B) company. GoSee is the other business it runs, which is…