4 small caps on my watchlist

The small cap world offers investors a lot of excitement and potentially large returns.

Here are four small cap ideas on my watchlist that could produce big returns in the future:

National Veterinary Care Ltd (ASX: NVL)

National Veterinary Care is my favourite small cap. It has defensive earnings being a vet yet is expanding quickly with acquisitions. I think it can continue replicating Greencross Limited’s (ASX: GXL) early success and grow its total number of veterinary clinics.

Bubs Australia Ltd (ASX: BUB)

I think this is a risky one, but management have effectively grown Bubs’ distribution channels at an impressive rate and that should translate into rocketing sales and perhaps a growing share price.

Fastbrick Robotics Ltd (ASX: FBR)

This is another risky one. It is developing a machine that could do the bricklaying work of a team of bricklayers. It recently linked with Caterpillar Inc. in the USA which could be great for future sales and marketing. The business could be worth billions in the future if it gets the technology right and doesn’t burn through all the cash.

1300 Smiles Limited (ASX: ONT)

I think finding a good business in a different industry is good for portfolio diversification. 1300 Smiles is one of the largest dentist groups in Australia and is steadily expanding through acquisitions. It’s already paying a pleasing grossed-up dividend of 4.61%.

Foolish takeaway

Bubs and Fastbrick Robotics are very risky options compared to what an investor could buy on the ASX and could burn through all their cash, they might go bust before making a profit.  Some high potential rewards come with high risk.

I think National Vet Care will beat the market convincingly over the next few years, which is why I’m a shareholder and why I think it’s worth an investment today.

If you want more growth ideas then you should check out these hot stocks.

Top 3 ASX Blue Chips To Buy In 2017

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Motley Fool contributor Tristan Harrison owns shares of Greencross Limited and NATVETCARE FPO. The Motley Fool Australia owns shares of Greencross 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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