In FY 2017 a number of small-cap shares such as Updater Inc (ASX: UPD) and Big Un Ltd (ASX: BIG) stood out with incredible gains for their shareholders. These two shares, for example, more than quadrupled in value during the financial year. I believe this demonstrate just how lucrative investing in small-cap shares can be. While it is important to remember that not every small-cap share will deliver returns of this magnitude, here are three that I would suggest investors keep a close eye on in FY 2018: Family Zone Cyber Safety Ltd (ASX: FZO) As its name implies, Family…
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These two shares, for example, more than quadrupled in value during the financial year.
I believe this demonstrate just how lucrative investing in small-cap shares can be.
While it is important to remember that not every small-cap share will deliver returns of this magnitude, here are three that I would suggest investors keep a close eye on in FY 2018:
Family Zone Cyber Safety Ltd (ASX: FZO)
As its name implies, Family Zone provides a selection of cyber safety products and services to consumers and businesses globally. As well as making inroads into the U.S. education sector in FY 2017, Family Zone also announced a potentially lucrative agreement with Indonesian telco company Telkomsel following a successful trial. This gives the company access to upwards of 165 million mobile phone subscribers. According to Parks Research, the addressable size of the cyber safety market could expand to US$100 billion per year for companies that can provide simple-to-apply protection that covers every connected device in the home. This is exactly what Family Zone provides.
GeoOp Limited (ASX: GEO)
This fast-growing cloud-based job management software provider for small businesses in the service industries is expected to land on the Australian share market at the end of September. Geo’s software, which is used by companies including AGL Energy Ltd (ASX: AGL), Alinta, and Red Energy, allows its users to handle workforce job and costings management, create and schedule jobs, and invoicing. This year Geo has forecast pro-forma revenue of $4.2 million, which is double FY 2016’s revenue of $2.1 million. I believe this strong growth can continue for some time to come thanks to its global opportunity driven by the ever-growing adoption of cloud-based products and services by businesses both large and small.
Rent.com.au Ltd (ASX: RNT)
Australia’s number one website dedicated to rental property is flying largely under the radar at the moment. But considering the growth of its Rental Resume product and its guidance for reaching profitability this year, I wouldn’t be at all surprised if Rent.com.au starts to gain attention from investors in FY 2018. Although it competes with industry giant REA Group Limited (ASX: REA), I think its intuitive and user-friendly website puts it in a great position to become the first port of call for renters. Especially with its Rental Resume product growing user number strongly. In just 10 months the company has exceeded 150,000 users of the resume service. I believe this product will give its website a sticky quality, keeping users coming back time and time again.
Finally, if you like growth shares then I think you'll love these fast-growing blue-chips. I believe each of them is in a great position to smash the market in FY 2018.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.