3 small-cap shares you won't want to miss

Pureprofile Ltd (ASX:PPL) and Buymyplace.com.au (ASX:BMP) are 2 of 3 stocks that could grow strongly over the coming years.

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The lower down you go on the market capitalisation list of businesses, the easier it is to pick up shares of an undervalued business, particularly one that isn't covered by analysts.

Every business on the ASX, from Commonwealth Bank of Australia (ASX: CBA) to The Reject Shop Ltd (ASX: TRS), started from somewhere and grew to the size they are today.

The following three businesses have the potential for a lot of exciting growth over the coming years and could be worth an investment today:

WPP Aunz Ltd (ASX: WPP)

WPP plc is an advertising giant in the UK which recently made its presence here larger by merging its business in Australia & New Zealand with STW Communications Group then changing its name to WPP Aunz.

Its first published results weren't incredibly exciting, with profit after tax and minorities growing from $23.2 million to $23.4 million. It always takes a little bit of time to integrate businesses after a merger or acquisition.

At only $1 billion in size WPP Aunz has the potential for a lot more growth utilising WPP's knowledge and brand power.

It's trading at 11.7x FY17's estimated earnings with a grossed up dividend yield of 6.67%.

Pureprofile Ltd (ASX: PPL)

Pureprofile is a small cap with a market capitalisation of only $40.5 million.

Its aim is to link businesses directly with customers to gain insights into the customer's thoughts on the brand through online surveys.

It is quite geographically diverse as it earns 33.7% of its revenue from the USA and 9.8% from the UK & EU. The remaining 56.5% of revenue is earned in Australia & New Zealand.

In FY16 it grew revenue by 30% and gross profit by 41%, it could have another strong year in FY17 thanks to organic growth and acquisitions.

Pureprofile doesn't make a profit yet or pay a dividend.

Buymyplace.com.au Ltd (ASX: BMP)

This business could be a disruptor to realestate agents like McGrath Ltd (ASX: MEA) across the country. It only has a market capitalisation of $12 million but it could become a powerhouse in the real estate world.

It works on the basis that it will help sell a home with no commission, just a simple fixed fee depending on the marketing package the vendor wants to pay for. Each package includes listing on REA Group Limited's (ASX: REA) Realestate.com.au and Fairfax Media Limited's (ASX: FXJ) Domain.com.au.

It has a long way to go before it's profitable, but now could be the time to buy whilst it's still small. Buymyplace doesn't yet make a profit or pay a dividend.

Time to buy?

I think both Pureprofile and Buymyplace look like speculative, but exciting buys at the current price. Both have long growth runways if management can execute plans correctly. They both strike me as businesses of the future, but investors should only consider a very small position in either company.

Motley Fool contributor Tristan Harrison 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.

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