small-cap

3 Small-cap stocks worth looking at – AKP, DDR, DTZ

Jan 09, 2018 | Team Kalkine
3 Small-cap stocks worth looking at – AKP, DDR, DTZ

Audio Pixels Holdings Ltd (ASX: AKP)

Capital raising: Digital Loudspeaker technology player, Audio Pixels Holdings’ stock edged lower after an initial rise of 7.6% on January 08, 2018 post a 12.8% rise in last five days. The group that slipped by 15.6% in last three months got the boost from the recently raised $4.5 million by way of convertible notes. The group has many patented technologies based on the use of micro-electromechanical structures. AKP’s new generation of speakers are expected to supersede performance specifications and design demands of the world’s top consumer electronics manufacturers. On the other hand, its fabrication partner revised guidance on delivery of wafers relating to final phase of commercialization plan in the month of December as glitches in fabrication process resulted into some issues. The newly fabricated wafers were forecasted for delivery in later part of Q1 2018. While certain shortcomings prevail, it will be prudent to keep a watch on the stock that looks to be trading at a high level at the current price of $18.88
 

Dicker Data Ltd (ASX: DDR)

Consistent revenue growth: Up 27.5% in last six months, high dividend paying small-cap stock, Dicker Data has been an interesting pick in 2017 and the positive scenario seems to continue with the wholesale distributor of Information Technology products benefitting from the cloud computing sector. The group has been lately appointment as a distributor of Juniper Networks for the Australian market and will have access to Juniper’s product portfolios. The group’s growing market share in existing vendor portfolio, expansion of products offered by existing vendors and new vendor additions have helped it demonstrate a continued momentum. DDR expects to complete construction of the new distribution centre, which is currently estimated to cost $55m, during CY18.
 

Diverse Vendor Relationships (Source: Company Reports)
 
The group had indicated for full year profit before tax of $40m and seems to vouch for improved performance with consistent revenue growth and diversified reseller network. With stock price touching peak 52-week level, we give a “Hold” at the current price of $3.16
 

Dotz Nano Ltd (ASX: DTZ)

Gaining traction: Manufacturer of graphene quantum dots (GQDs), Dotz Nano’s stock rallied up 18.9% on January 08, 2018 as the group’s Israel subsidiary inked an exclusive distribution and sales agreement with China Israel (hengqin) Science Technology Innovation Center Ltd. (CisticPoly). The latter will purchase GQDs for exclusive distribution in China, conditional on CisticPoly’s or third-party approval of product specifications post which purchase orders for the GQDs will be issued. CisticPoly will purchase a minimum value of GQDs over a three-year period equal to US$15 million, with specific pricing and quantities to be agreed upon. With this, the group has been able to accelerate its commercialization process. By end of last year, DTZ had signed approximately $550,000 worth of contracts and can produce 200 kilos per annum in Israel and approximately 5,000 kilos per annum in New Jersey. The group has earmarked 2018 for achieving key milestones for Dotz Nano Singapore, an additional 100% owned subsidiary focused on the development of the use of GQDs as a bio-imaging agent. The group has also filed US patent application on use of GQDs as anti-counterfeiting markers in conjunction with blockchain technology. Given the recent run-up in the stock price, we put a “Hold” at the current price of $0.22


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