The Melbourne Cup is upon us once again and punters across the world will soon begin placing bets ahead of the big race.
Before the race starts and the wine from Treasury Wine Estates Ltd (ASX: TWE) begins to flow, punters that like outsiders with the potential to surprise might want to consider some of Australia's up and coming small-cap shares.
One in particular which I think has the potential to be a winner is as follows:
Big Un Ltd (ASX: BIG)
This video technology company's shares have been on fire this year and climbed higher by a staggering 1,500%. The key driver of this incredible share price gain has been the growing popularity of its video production services by small businesses here in Australia and in the United States.
For the quarter ended 30 September 2017, Big Un achieved cash receipts from customers of $15 million. This was an increase of 488% on the prior corresponding period and led to a cash profit of $5.6 million from operating activities for the first-quarter of FY 2018.
Impressively, the company advised that revenue from existing customers increased 22% from the corresponding quarter in the prior year. This means that not only have these existing customers renewed their business with Big Un, they are paying considerably more than they were a year earlier.
I believe this is a testament to the quality of the product and the value it brings to small businesses.
Should you invest?
By my calculation this means Big Un's shares are changing hands at approximately 23x annualised earnings, which I don't believe is too demanding considering its current growth profile and expansion plans.
In light of this, I think there is still a chance Big Un's shares could race even higher over the next 12 months.
Finally, pipped at the line was fellow small-cap share Family Zone Cyber Safety Ltd (ASX: FZO) which I think investors should keep a close eye on in the future.
