MENU

3 exciting small-cap shares to watch in January

Last year the S&P/ASX Small Ordinaries (Index: ^AXSO) (ASX: XSO) outperformed its illustrious rival the S&P/ASX 200 with an impressive 15.5% gain.

While I wouldn’t necessarily expect a gain of that magnitude again this year, I do believe there are a number of small-cap shares capable of beating the market.

Three to watch this month include:

Buddy Platform Ltd (ASX: BUD)

This Internet of Things company could be on the verge of breaking out into the mainstream thanks to reseller agreements with Telstra Corporation Ltd (ASX: TLS), Ingram Micro, and Digicel and a distribution agreement with Dicker Data Ltd (ASX: DDR). I’m very optimistic on the future of Its Buddy Ohm product which is often referred to as the “Fitbit for buildings”.

Lepidico Ltd (ASX: LPD)

The lithium boom isn’t likely to go away any time soon due to the insatiable demand from electric vehicle battery makers and the lack of supply coming to market. One key reason I like the look of Lepidico is that it owns the technology behind a metallurgical process that has successfully produced lithium carbonate from non-conventional sources. This piqued the interest of lithium giant Galaxy Resources Limited (ASX: GXY), leading to it buying a stake in the company.

Wattle Health Australia Ltd (ASX: WHA)

I suspect that later this month Wattle Health will announce that it has gained CFDA approval to sell its infant formula products in the lucrative China market. If Chinese consumers take a liking to the product then there’s a chance that its sales could rise significantly this year. I’ll be watching Wattle Health very carefully this year.

Here are three more exciting shares that I think could be market-beaters this year.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We're living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That's why at The Motley Fool we've been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We've found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited and Telstra 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.