Daily FNArena News - Small Caps

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.

Dental chain 1300SMILES has become more upbeat, expecting the typical surge in economic activity in North Queensland in the wake of the floods will boost its business.

Favourable demand/supply dynamics underpin wood fibre exporter Midway, which has impressed brokers with its expansion plans.