Two of my favourite shares on the ASX are childcare centre operator G8 Education Ltd (ASX: GEM) and integrated pet care company Greencross Limited (ASX: GXL).
Both companies have been dominant forces in their respective industries for some time, growing substantially through the acquisition of their competitors.
But due to the size of the markets they each operate in, I believe there is more than enough room for two big industry players.
Which could be great news for shareholders of the two small-cap shares below. Here's why I think they could be great buy and hold investments:
Although the National Veterinary Care Ltd (ASX: NVL) share price has risen almost 70% in the last 12 months, I don't believe it is too late to invest in this fast-growing company. As the name implies, National Veterinary Care provides veterinary services through its 54 clinics throughout Australia. In its recent half-year results the company reported a 71% jump in revenue to $33 million. Like rival Greencross Limited, National Veterinary Care has managed to accomplish this through its successful growth through acquisition strategy. I believe the highly fragmented market means there's still plenty of room for growth over the next decade, which could make this an ideal time to make a buy and hold investment.
The Think Childcare Ltd (ASX: TNK) share price has performed even better and has risen an astonishing 103% since this time last year. Think Childcare recently reported a strong full-year result which saw net profit after tax increase 11.6% year-on-year. Like National Veterinary Care and its rival G8 Education Ltd, Think Childcare has taken advantage of the fragmented childcare market to grow through acquisitions. At a little under 19x earnings and providing a trailing fully franked 3.6% dividend, I think its shares are about fair value now.
