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Small Cap Movers: ‘Ten-baggers’ Synairgen, Alien Metals keep up impressive share price runs


Synairgen PLC (LON:SNG) this week completed an £80mln share placing to support its lead drug through final-stage coronavirus (COVID-19) clinical trials.

Nothing unusual there – except for the fact that a year ago the business was valued at just over £14mln. Now it’s worth £301mln.

The shares have zoomed up by 2,082% to 194p over the past twelve months, earning Synairgen entry to the ‘ten-bagger’ club of high growth stocks that have risen at least ten-fold in a short space of time.

The latest cash injection will allow the life sciences group to fund a phase III trial of SNG001, an inhaled interferon-beta powder. It will also allow it to ramp up production next year to 100,000 treatment courses a month.

Also in the ‘ten-bagger’ club is Alien Metals Ltd (LON:UFO), which continued to enjoy its otherworldly run this week with a 34% jump to 2p.

The stock has rocketed 1,830% higher since July with the silver price providing the catalyst – this and a greater investor appreciation of the true potential of Alien’s Elizabeth Hill project in Western Australia.

Polarean Imaging PLC (LON:POLX) – up 42% this week to 69p – hasn’t quite scaled the same heights but you’d still have tripled your initial investment had you invested in the stock just six months ago, with the share price driven higher by a steady stream of positive news flow. 

The med-tech group, which has created a drug-device combo that allows doctors to scrutinise lungs using MRI, this week signed up the world-famous MD Anderson Cancer Center in Texas as its latest research client.

Turning to the wider market, the AIM-All Share dipped 1% over the week to 977, but still outperformed the FTSE 100, which was down 2% to 5,890.

In the mining sector, GCM Resources PLC (LON:GCM) climbed 38% higher to 14p after establishing a joint venture with China’s NFC for the Phulbari coal project in Bangladesh.

Elsewhere, surveillance systems developer Petards Group PLC (LON:PEG) pushed 26% higher to 8p on the back of a new contract to supply software to trains operated by Great Western Railway.

Among the fallers, security and cleaning specialist STM Group PLC (LON:STM) dropped 26% to 26p after warning full-year profits will be hit by weak trading, but it said it should recover next year.

In the online retail space, ASOS PLC (LON:ASC) shed 14% to 4,688p despite posting a four-fold increase in profits after a strong lockdown performance. The decline marks an intensification of profit-taking after shares rallied almost five-fold from their post-pandemic nadir.

Meanwhile, hostels operator Safestay PLC (LON:SSTY) dipped 8% to 11p after announcing the temporary closure of eight hostels, reducing bed capacity across the chain to 45% of normal. FTSE 250-listed competitor Hostelworld forecast a slow recovery this week.

Upcoming are two new issues that should offer a little variety to the normal diet of natural resources, tech and biotech stocks found on AIM.

According to reports, Chrystal Capital Partners plans to have Verdite, Europe’s largest cannabis-focused private equity fund, up and running by the end of the year.

MailBox REIT, meanwhile, is taking a completely new route to market. Rather than being quoted on the LSE it is expected to become the very first listing on the IPSX, the world’s first regulated stock exchange dedicated solely to property. 

The single-asset real estate investment trust owns the Mailbox in Birmingham, a 698,000 square-foot office, retail and leisure development.

Making its market debut in early November, the trust is raising £62.5mln, giving it a market capitalisation of £116mln at £1 a share. The Birmingham building has been independently valued at £179mln.

First Sentinel: The mini-investment bank already punching well above its weight

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