3 beaten down small-cap shares to buy today

Whilst at present I don’t see a lot of value in many of Australia’s blue-chip shares, it is a very different story at the other end of the market.

Due to recent share price movements I think there are a number of small-cap shares that look relatively cheap. Here’s why I think they are worth considering:

The 1300 Smiles Limited (ASX: ONT) share price has fallen almost 15% since the start of the year. The catalyst for this decline was a disappointing half-year result. But with management optimistic that trading conditions will improve for the dental business and seeing opportunities to expand through acquisitions, I believe this debt-free and cash-rich business could be a good option for investors today.

The Capilano Honey Ltd (ASX: CZZ) share price has tumbled 19% since this time last year. This has left the leading honey producer’s shares changing hands at just under 15x trailing earnings. I think this is a great price to pay to own the shares of a company which has seen a significant lift in exports to China. Sales into the country almost doubled during the first-half and I expect similarly strong numbers in the second-half. Especially now it has launched an e-commerce store on Alibaba’s Tmall.

The Think Childcare Ltd (ASX: TNK) share price is down 11% year-to-date. This means the childcare provider’s shares are trading at just 14x trailing earnings and at a reasonable discount to industry giant G8 Education Ltd (ASX: GEM). With a pipeline of newly developed, purpose built childcare centres around Australia waiting to be acquired progressively over the next five years, I believe Think Childcare could prove to be a good buy and hold investment.

Another reason I like Think Childcare is its generous dividend. Whilst it isn't quite as big as the yield of this dividend share, it certainly has room to grow.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Capilano Honey Limited. 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.

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