Why the Big Un Ltd share price rocketed 20% on Thursday

The Big Un Ltd (ASX:BIG) share price was one of the best performers on the market yesterday. Here's why…

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On Thursday the Big Un Ltd (ASX: BIG) share price was one of the best performers on the local market by some distance.

The video technology company's shares finished the day 20% higher at $1.63.

Why did its shares jump?

Yesterday Big Un announced that it has had a strong start to FY 2018 and expects its extraordinary growth in cash receipts to continue in the first-quarter.

In FY 2017 Big Un reported full-year cash receipts growth of 429%.

Impressively the company has built on this and expects to achieve cash receipts from customers in excess of $12.5 million for the first-quarter of FY 2018.

This will be a massive 390% increase on the prior corresponding period.

According to the release, an excellent performance from the company's sales and production teams in July, strong demand for video subscription in Australia, and a promising start to its U.S. activities has been the catalyst for the strong guidance.

Should you invest?

I think that Big Un could be a great option for investors that are looking for exposure to the small-cap space.

Although its shares have rallied over 600% this year, I don't believe this is by any means a speculative bubble, but rather a well-deserved increase in the shares of a company that has delivered exceptional results.

If the company can replicate its Australian success in the massive U.S. market then the sky really is the limit for its shares.

In light of this, I would put it up there with GetSwift Ltd (ASX: GSW) and Updater Inc (ASX: UPD) as one of the best small-cap shares on the market at present.

Motley Fool contributor James Mickleboro owns shares of GetSwift Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. 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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