MENU

Here are 5 exciting small-cap shares to watch

Arguably the most exciting and rewarding investments that can be made on the Australian share market in my opinion are in companies which have small capitalisations and enormous potential.

Take for example Altium Limited (ASX: ALU). In 2011 the printed circuit board software provider had a market cap of just $9 million. Fast forward to today and the company has a market value of $1.1 billion and is targeting revenue of US$200 million by 2020.

Of course for every success story there are many failures. But by choosing carefully I believe investors can limit the risks.

With that in mind, here are five small-caps I think are worth looking closely at:

ChimpChange Ltd (ASX: CCA)

This US-based digital banking company is looking to disrupt the American banking system with its mobile platform. Targeting millennials and the underbanked, ChimpChange has been growing its user numbers at an impressive rate over the last 12 months.

Cynata Therapeutics Ltd (ASX: CYP)

I believe this regenerative medicine company could have a bright future thanks to its Cymerus technology. That technology can produce an unlimited number of high quality stem cells at a low cost. Subject to clinical trials, these will then be used to treat numerous diseases including graft versus host disease and cardiovascular disease.

GetSwift Ltd (ASX: GSW)

This exciting delivery management software provider aims to streamline a company’s logistics through its innovative platform. Its software optimises delivery routes, automates the dispatch process, and provides real-time tracking alerts. Even without a salesforce GetSwift has been growing strongly and has clients in over 59 countries and 475 cities.

LiveHire Ltd (ASX: LVH)

This talent technology company provides its users with a software platform which creates a pool of pre-qualified job candidates to access when they need to recruit. By doing things this way, it saves recruiters both time and money. LiveHire recently reported an impressive 75% quarter-on-quarter increase in cash receipts thanks to strong demand from big name clients such as Wesfarmers Ltd (ASX: WES) and Bupa.

UUV Aquabotix Ltd (ASX: UUV)

This fledgling company manufactures commercial and industrial grade unmanned underwater vehicles (UUVs). There are a good number of target markets for its UUVs to be used in, including defence, law enforcement, pipeline inspection, and aquaculture. As a leader in the field with a talented and respected management team, I believe UUV Aquabotix is positioned well to make a big impact in this growing industry.

Finally, I wouldn't recommend a portfolio of just small-cap shares. So to diversify I would suggest investors consider these explosive blue-chips as well.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Wesfarmers Limited. Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Altium. 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.

HOT OFF THE PRESSES: My #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

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.