3 speculative small-cap shares to watch in 2018

Fastbrick Robotics Ltd (ASX:FBR) shares are one of three I would keep a very close eye on in 2018…

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When it comes to small-cap shares with global ambitions and huge potential, I think Australian investors are spoilt for choice.

While they may not be ready to be invested in, after making great strides towards their goals in 2017, I think the small-cap shares listed below will be ones to watch in 2018. They are as follows:

Fastbrick Robotics Ltd (ASX: FBR)

This robotics company is the brains behind the Hadrian X brick-laying robot which is able to lay 1,000 standard brick equivalents per hour. By comparison, a typical Australian bricklayer is able to lay 400 bricks per day. When a robot can do the weekly output of a human in just two hours, it is clear to see the benefits for home builders when used at scale. Fastbrick Robotics has US-giant Caterpillar as a strategic partner and recently announced a major memorandum of understanding to build 50,000 new homes in Saudi Arabia.

SKY and Space Global Ltd (ASX: SAS)

In 2017 SKY and Space Global successfully launched into orbit and tested its first three nano-satellites. Ultimately the company aims to create a full Equatorial constellation in order to deliver cost-effective communications infrastructure and services to disrupt the telecommunications and international transport industries. Management estimates the quantum of bandwidth generated by the full constellation has the potential to generate between US$600 million and US$1 billion in annual revenues.

Wattle Health Australia Ltd (ASX: WHA)

This health foods company has seen its share price gain well over 1,000% this year thanks to its fledgling infant formula business. Although sales are limited at this stage, investors are pinning their hopes on the company cracking the Chinese market in 2018. Whilst I am a fan of the company, I’m not a fan of its valuation. But with its CFDA approval expected to be granted this month, Wattle Health will be one of only a few Australian companies able to sell infant formula in China from January 1 when new regulations come into place. This could give it an edge over the competition.

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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.

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