Reporting season is the perfect time to reassess your portfolio and clean out weak stocks and replace them with more compelling opportunities. Recently, the Australian Financial Review ran a story highlighting some of the top stock ideas from some of Australia’s leading micro-cap portfolio managers.
Here are five stocks which rated a mention:
- Altium Limited (ASX: ALU) operates within the technology and software sector and has sales globally. Despite an incredible share price run which has seen the stock gain 640% in the past five years, the company is still relatively small with a market capitalisation of $270 million.
- WDS Limited (ASX: WDS) is a highly respected provider of specialised underground coal mining products and services. Given the current state of the coal sector WDS is certainly a contrarian play but one which could pay-off handsomely. In the meantime, the stock is currently offering an attractive dividend yield of approximately 8%.
- eBet Limited (ASX: EBT) has a market capitalisation of $63 million and largely flies under the radar of many investors. The company operates in a number of exciting niches relating to poker machines and online gaming which offers good prospects for further growth.
- Lindsay Australia Limited (ASX: LAU) is a refrigerated trucking provider. Lindsay’s operations are focussed on the hot climatic region of Northern Queensland and can be viewed as a play on increased agricultural production and the China food bowl theme.
- Enero Group Ltd (ASX: EGG) is a marketing and communications company that has survived a near-death experience. The stock has gained 160% in the past year and with the business having been stabilised some investors think there could be further gains ahead.
One more stock every investor must know
When you're buying microcap stocks its vitally important that you are adequately diversified. The above five stocks all look to be worth your consideration but there is one stock which I think could offer even greater potential! The Motley Fool has issued a firm "BUY" rating on this small but ultra promising ASX company… and you can get the name and code FREE right now. Click here for your free copy of "The Motley Fool's Top Stock for 2014."
Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.