Here are three companies that I think offer some spectacular growth prospects at cheap prices. As always, investors must be aware that their small cap status means significant risk is attached to these companies. Therefore, portfolios must be balanced with the right mix of lower-risk blue-chips as well.
1. Perth-based company Liquefied Natural Gas Limited (ASX: LNG) has been the ASX's standout stock in 2014, growing a whopping 1,691% in the past year. Liquefied Natural Gas owns ground breaking technology known as Optimised Single Mixed Refrigerant which is used to improve its liquefaction techniques. The company is developing the Magnolia LNG facility in Louisiana, aiming to build an 8 million tonne per annum LNG liquefaction facility. Given its outstanding gains, investors may shy away from Liquefied Natural Gas, but I think this is just the beginning of a long run of quality growth.
2. Junior bauxite explorer Australian Bauxite Ltd (ASX: ABX) may only have a market capitalisation of $31 million, but it's jam-packed with some explosive growth potential. The company has recently been granted its first Tasmanian mining lease at its Bald Hill project. The lease will see Australian Bauxite producing about 1.5 million tonnes of aluminium oxide which will be exported from Bell Ray. The lease is a major stepping stone for Australian Bauxite as it increases its exposure to the lucrative Bauxite market. In an industry where demand is rising and supply is shrinking, I think Australian Bauxite deserves a place on your watchlist.
3. Nearmap Ltd (ASX: NEA) is a provider of geospatial map technologies for business, enterprise, and government customers. In its recent FY14 report, Nearmap lifted its $1 million loss to a staggering $7.1 million maiden profit. What really caught my attention however was Nearmap's recent series of test flights in the US, where it is aiming to replicate its Australian success. Although US expansion may seem risky, it's important to appreciate Nearmap's healthy balance sheet. Nearmap holds an impressive $23.3 million of cash and no debt, providing it with that extra cushion in case things don't turn out as planned. Despite trading on a relatively hefty price-to-earnings ratio of 28, I think Nearmap's growth prospects have the ability to provide investors with more future gains.