Daily FNArena News - Small Caps

Drilling fluids and services group Imdex posted a solid full year earnings result but BA Merrill Lynch has downgraded to a Neutral rating as weaker equity markets may impact on exploration spending.

With Nomad Building Solutions struggling to return to profitability and offering limited earnings visibility RBS has ceased coverage on the stock.

A solid full year result from Flexigroup and enough confidence to guide to earnings growth in FY12 sees brokers retain Buy ratings.

Following a meeting with management Moelis has reiterated a Buy rating on Thorn Group.

An expected two-month payback from the Cadlao project in the Philippines is enough for DJ Carmichael to initiate coverage on junior oil play Raisama with a Spec Buy rating.

Aussie biotech junior Bionomics has received positive results from early trials of an anti-anxiety compound and Bell Potter sees enough potential upside to rate the stock a Speculative Buy.

The stockbroker formerly known as Southern Cross Equities (now Bell Potter) has reiterated its Speculative Buy rating on Starpharma.

IT group UXC is looking to divest its Field Services division and stockbroker Moelis suggests this is likely to act as a positive catalyst.

Morgan Stanley suggests the upcoming full year result for ASG Group is likely to act as a positive catalyst for the share price.

Norfolk Group delivered a good quality profit result and with guidance for FY12 viewed as conservative brokers continue to rate the stock as a Buy.