MENU

4 small-cap shares I think could be set to soar in 2017

It certainly has been a great 12 months for Australia’s small cap shares. During this time the S&P/ASX SMALL ORDINARIES (Index: ^AXSO) (ASX: XSO) has risen a stunning 16.4%.

Despite the strong gains from the index, I still feel there are a number of small caps out there with the potential to keep on climbing higher. Here are four of them:

Capilano Honey Ltd (ASX: CZZ)

This leading honey producer is looking to China for growth and so far so good. A big driver in its recent 20.9% jump in full year net profit after tax to $9.5 million was its China business. Sales to greater China grew a whopping 56.9% year on year. At 17x full year earnings its shares look to be good value in my opinion.

Impedimed Limited (ASX: IPD)

This medical device company has two key products which I believe have strong potential. Firstly its SOZO device scans the body and is able to judge the user’s overall health status. I see this appealing to doctors, gyms, and health fanatics. Then there’s its L-Dex lymphoedema detection product which has launched in the US and is pursuing the Chronic Heart Failure business.

Money3 Corporation Limited (ASX: MNY)

The shares of this small loans company have gone gangbusters this year and more than doubled in value. Despite this they are still changing hands at under 14x full year earnings. Thanks to the strong performance of its auto loans business, I feel confident the company will continue growing earnings at a rapid clip. Another bonus is that its shares are expected to provide a fully franked 3.3% dividend in FY 2017 according to CommSec.

Xenith IP Group Ltd (ASX: XIP)

Xenith IP is a provider of a range of intellectual property services for thousands of clients across the globe. At 13x full year earnings it strikes me as great value. Especially when you factor in that next year the company is forecast to raise its dividend to 16.8 cents per share. At the current share price this would be a generous fully franked 5% dividend.

Need to make room in your portfolio? Getting rid of these wealth-destroying shares would be a great start. Are they in yours?

3 Rotten Shares to Sell, and 1 to Buy Today

After a double-digit rally for the ASX since 2016 lows, investors should be on high alert. You'll find a full rundown below of 3 shares we think you should avoid today plus one top pick worth buying, even if the market turns south and the RBA keeps rates at an "emergency low." Simply click here to uncover these stocks.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.