Daily FNArena News - Small Caps

It’s a tough year ahead for Nick Scali as conditions are subdued and the furniture retailing business is dependent on a turnaround in housing activity.

Significantly higher earnings are expected from Pinnacle Investment over the longer term, although the business is likely to wear some short-term volatility.

Smart phone technology company, Life 360, has performed strongly in the first half and brokers are impressed with the outlook.

High lithium inventory, trade and political tensions have impacted Orocobre in the June quarter. Nevertheless, brokers believe the business is well-positioned for when the market turns around.

FY21 will be a watershed year for Senex Energy and several brokers expect the stock to re-rate as gas production increases and LNG spot prices recover.

Brokers are increasingly confident network services provider Megaport has a bright future after the June quarter revealed significant growth in revenue and installed locations.

Lithium producer Galaxy Resources is at the mercy of weak fundamentals for spodumene, which comprises all of its production output.

AMA Group stands to benefit substantially from the trends in vehicle repairs. Moelis initiates coverage of the stock.

Brokers welcome the prompt sale of two non-core businesses and the reduced risk of EclipX breaching its corporate debt covenants.

People Infrastructure has been busy with acquisitions since its IPO, with brokers noting the higher profile in the attractive healthcare and IT sectors.