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.
