MENU

Here are 3 explosive small-cap shares flying under the radar

In the last couple of years I have been very disappointed by the performance of trusty blue-chip shares such as Woolworths Limited (ASX: WOW) and Telstra Corporation Ltd (ASX: TLS).

During this time the two shares have struggled to find a sufficient level of growth to satisfy shareholders and the market, ultimately leading their shares to fall 10% and 25% respectively.

Three small-cap shares which certainly haven’t struggled for growth are listed below. Here’s why I think they’re worth taking a closer look at:

The ChimpChange Ltd (ASX: CCA) share price is up 55% so far in 2017 thanks largely to the digital banking platform’s strong growth in customer numbers and total transaction value. The company added an impressive 41,000 customers during the first-half of FY 2017. This led to an 85% increase in total transaction volumes in February. With a host of innovative new revenue-generating features on the way, I believe ChimpChange is a company on the rise.

The Rungepincockminarco Ltd (ASX: RUL) share price is up over 63% in the last 12 months. Although FY 2016 was a touch disappointing, I have been very impressed with the strong start the mining software solutions company has made to FY 2017. The company posted an underlying profit after tax of $1.1 million, compared to a $0.9 million loss in the prior corresponding period. Thanks to the growth in software license fees I expect the company to finish FY 2017 in a similarly strong fashion.

The Smart Parking Ltd (ASX: SPZ) share price has risen an impressive 20% in the last three months. The company has over 120,000 car park spaces under management in the United Kingdom and a total of 190 car parks under management worldwide. Thanks to the growing popularity of its parking bay sensor technology, Smart Parking recently posted its maiden half-year profit of $0.4 million. With over 100 new sites in the pipeline for installation in the second-half and a healthy cash balance, I believe Smart Parking is one to watch.

Admittedly not all blue-chip shares have performed poorly. These three fast-growing blue-chips have performed incredibly well during the last 12 months. I expect this trend to continue for the foreseeable future, which could make it an opportune time to invest.

A Big, Fat, Fully Franked Dividend

This company's dividend is almost the stuff of legends. Since it started paying dividends in 2007, it has increased its payout to shareholders every single year, a run that includes 21 consecutive dividend increases.

Based on the last 12-months of dividends, its shares are currently offering a fully-franked 4.8% yield, which grosses up to almost 7% when those franking credits are included. And in stark contrast to the likes of Commonwealth Bank and Telstra, this company just increased its dividend by over 13%, and guided for 2017 profits to grow by 20%!

Discover the name of this "new breed" of blue chip along with 2 others in our new FREE report "The Motley Fool's Top 3 Blue Chips Stocks For 2017."

Click here to receive your copy.

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.