When looking for long-term buy and hold investments I believe some of the best options out there are not in the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO), but can be found outside the index in the lower reaches of the market.
Three small-cap shares which I believe could have bright long-term growth prospects are listed below. Here's why I'm tipping them for big things in the future:
The Bionomics Ltd (ASX: BNO) share price has climbed 10% so far this year, building on the strong gains it made last year. The main reason I like this biopharmaceutical company is its BNC210 anxiety drug. Phase II trials revealed that the drug outperformed the current standard of care with no signs of sedation, memory impairment, addiction, or loss of motor co-ordination. These side effects can occur with the use of benzodiazepines such as Lorazepam. According to management the anxiety disorders market is projected to reach US$18.2 billion per year by 2020.
The ChimpChange Ltd (ASX: CCA) share price is up a staggering 51% year-to-date. This gain is largely the result of the digital banking platform company's strong growth in customer numbers and total transaction value. In the first-half of FY 2017 the company added an impressive 41,000 customers. This ultimately 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 to keep a close eye on.
The LiveHire Ltd (ASX: LVH) share price has jumped 45% so far in 2017. The talent technology company's shares have been on a tear since the release of a strong quarterly update in January which revealed an impressive 75% quarter-on-quarter increase in cash receipts. LiveHire provides a platform which creates a pool of pre-qualified job candidates for companies to access when they need to recruit. It currently has a host of big name clients including Japara Healthcare Ltd (ASX: JHC) using its service and a hefty cash balance following a $12.5 million capital raising today.
