Shares of Pilbara Minerals Ltd (ASX: PLS), Class Ltd (ASX: CL1) and Praemium Ltd (ASX: PPS) trounced the ASX 200 index
today. Here’s what we could find…
1. Pilbara Minerals Ltd
Pilbara Minerals is an Australian lithium producer with its 100%-owned Pilgangoora Lithium-Tantalum Project. The Pilgangoora project is located in West Australia and is one of the largest lithium ore deposits in the world. With this asset, Pilbara Minerals plans to become one of the world’s largest producers by 2020.
There was no market sensitive news released by Pilbara today but the company is one of the most shorted companies on the ASX. That makes it more sensitive to positive (and negative) share price surprises.
Unfortunately for short sellers, Pilbara shares have been rising fast this past week following the strategic investment and share purchase by Contemporary Amperex Technology (Hong Kong) Limited or CATL. Pilbara successfully raised $55 million with the support of CATL, China’s largest battery producer for electric vehicles.
2. Class Ltd
Class is a software company which specialises in products for financial advisers and self-managed superannuation funds (SMSFs). These are called the Class Portfolio and Class Super, respectively.
Like Pilbara Minerals, Class shares have rebounded from a few months of heartache for shareholders. Last week, investors attended the company’s Annual General Meeting (AGM) and appear to have been enthused by the company’s 10% revenue growth outlook for FY20. In its presentation Class said ongoing development enabled it to expect, “…a material uplift in revenue and EBITDA performance in FY21 and beyond”.
3. Praemium Ltd
Similar to Class, Praemium provides investment administration, managed account and financial planning technology platforms. It currently reports on over 500,000 investor accounts covering over $140 billion in funds globally and provides services to more than 1,000 financial institutions and intermediaries.
Praemium released no market sensitive news. However, it shares have also been rising strongly over the past week. Even still, at $0.68 a piece, Praemium shares are a long way off its all-time high of $1.11 achieved back in 2018.
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Disclosure: At the time of publishing, the author does not have a financial interest in any of the companies mentioned.
