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3 speculative small-cap shares to watch this year

money grow

While blue chip shares such as Telstra Corporation Ltd (ASX: TLS) and Wesfarmers Ltd (ASX: WES) are well known and widely held amongst retail investors, I suspect the small-cap shares listed below aren’t.

While they may not be ready to be invested in, I do think they are worth keeping a close eye on this year:

Bioxyne Ltd (ASX: BXN)

This Australian life sciences and health products company caught the eye last year when it announced plans to launch three health and wellness products into the South East Asia market. The key product, in my opinion, is its BK18 nutritional health drink which is made with dairy from Waikato, New Zealand and includes an immune boosting probiotic and a range of key vitamins. Orders have already flooded in prior to its marketing campaign launching, which could be a very positive sign.

Longtable Group Ltd (ASX: LON) (Formerly known as Primary Opinion Ltd (ASX: POP)

This food company is headed by former Bellamy’s Australia Ltd (ASX: BAL) CEO Laura McBain. Up until recently the only asset on its books was its 48% stake in the Maggie Beer product range. However, the company recently raised $43 million in order to fund the acquisition of leading biodynamic-organic dairy products company B.-d Farm Paris Creek at a multiple of 2.1x sales. I think this acquisition and McBain’s experience in taking a small company onto the global stage puts Longtable in a position to grow strongly over the next few years.

SKY and Space Global Ltd (ASX: SAS)

Last year SKY and Space Global successfully launched into orbit and tested its first three nano-satellites. These are the first part of a plan to create a full Equatorial constellation that will 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. The company recently announced a US$30 million five-year deal with BeepTool to provide bandwidth for building innovative messaging and payment solutions designed to help connect the unconnected throughout key African markets.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited and Wesfarmers 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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