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.

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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.

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