Whilst almost all investors will be familiar with blue-chip shares such as Woolworths Limited (ASX: WOW) and Telstra Corporation Ltd (ASX: TLS), I believe there are a great number of exciting companies with strong long-term growth prospects flying under the radar in the small-cap space.
Two shares which I think are worth taking a closer look at are listed below. Here's why I think they should be on your watchlist:
ChimpChange Ltd (ASX: CCA)
This US-based digital banking company has lofty ambitions to disrupt the American banking system with its mobile banking platform. So far the company has performed extremely strongly and recently reported exceptionally strong growth in user numbers and transactions.
Furthermore, this morning I was pleased to see that the company plans to change its name to Change Financial Ltd in the near future. This has been done to reflect the evolution of the business and growth into new banking verticals beyond consumer bank accounts for the millennial demographic.
Xtek Ltd (ASX: XTE)
I believe that this exciting defence technology is one to watch in the future. Xtek was recently named as the primary contractor in the massive $100 million LAND 129 Phase 4 program for the supply of drones to the Australian defence force. As well as this, this morning the company announced that it will act as the supplier of the small, portable, reliable, and rugged unmanned aerial platform WASP AE for AeroVironment.
Another reason I like the company is that following a recent oversubscribed placement, this cash flow positive company has almost a quarter of its market capitalisation in cash. Management intends to use these funds to support product commercialisation and development, and allow it to pursue more and larger contracts.
