Daily FNArena News - Small Caps

As expected, EclipX delivered a very weak first half, posting losses in four out five of its adjacent businesses. Yet brokers believe upside has emerged if the focus can return to the core operations.

Brokers expect strong growth in returns from Think Childcare over the next few years.

Increased competition in generic drugs has caused a significant deterioration in Mayne Pharma earnings and the company is reviewing the carrying value of these assets.

In a difficult, changing and subdued retail/housing environment the success of City Chic Collective and Adairs can be attributed to a deep knowledge of their customer base. Canaccord Genuity initiates coverage on the two.

Lithium sales were significantly lower in the March quarter for Galaxy Resources, while the sell-down process for Sal de Vida has been formally closed without a deal.

Despite a soft top line in the March quarter, brokers are reasonably confident that jeweller Michael Hill has enough in the kitty to meet FY19 expectations.

Praemium has lost a long-standing customer ANZ Private to a rival. Brokers assess what this means for the business going forward.

Freedom Foods is now less likely to be in the bidding for Lion Dairy & Drinks. This would be a positive signal to brokers, putting the focus squarely on new product development.

Infigen Energy continues to focus on several renewable energy channels, pursuing growth amid volatility in the electricity market.

Difficult conditions in rural Australia have dampened the outlook and Elders expects first half earnings will be materially lower.