Daily FNArena News - Small Caps

Canaccord Genuity has initiated coverage with a Buy recommendation on EML Payments suggesting the company offers investors good exposure to the growing prepaid financial products industry.

Metals X has furthered its definitive feasibility study on the Rentails tin and copper re-treatment project, providing robust economics. Canaccord Genuity estimates a final investment decision will take 6-9 months.

BWX has acquired US natural cosmetics outfit Mineral Fusion, providing an opportunity to expand its business globally.

Brokers are encouraged by the additional scale that the latest acquisitions bring to the Collins Foods KFC network in Australia.

Canaccord Genuity is the latest broker to become excited about athlete monitoring SaaS company Catapult Group.

Dairy co-operative MG Unit Trust will undertake a comprehensive strategic review, acknowledging its recent performance has been unacceptable. This adds another layer of uncertainty to the outlook, brokers suggest.

Dental chain Pacific Smiles has signalled softer trading conditions occurred in April and May. Regardless, brokers remain positive about the longer term outlook.

Almond yields have fallen for Select Harvests, which has issued its second downgrade to production forecasts in as many months. Brokers opt for conservatism ahead of confirming 2017 as a one-off.

An aftermarket guidance upgrade from new world advertising and promotion provider Appen has brokers scrambling to upgrade forecasts.

Brokers agree furniture retailer Nick Scali is well-positioned, given its scale in a fragmented market and a clear growth strategy.