The Motley Fool

These 3 small cap shares zoomed higher today

The market has thankfully bounced back from yesterday’s decline with a solid move higher on Wednesday.

Three small cap shares that have produced even stronger gains than the market are listed below. Here’s what made them zoom higher:

The Hydroponics Company Ltd (ASX: THC) share price is up almost 8% to 77 cents. As well as gaining a boost from investors returning to risk assets again today, this medicinal cannabis company put out a promising announcement. According to the release, the company advised that it has completed its visit to several medicinal cannabis clinics in Canada and will now take what it has learned and replicate the model in Australia. The first medicinal cannabis clinic is expected to open in the second quarter of 2018. I think this is an interesting development and could potentially give it a first-mover advantage if it is a success.

The Volpara Health Technologies Ltd (ASX: VHT) share price is up 15% to 77 cents following the release of an investor update from the digital healthcare company. According to the update, total contract value (TCV) added in January was NZ$1.2 million, up 400% on the prior corresponding period. As a result, annual recurring revenue (ARR) has increased to over NZ$3 million, from NZ$1.1m at the end of FY 2017. Management believes this puts the company well on track to exceed its 200% ARR growth target for FY 2018 and I agree. While its shares are by no means cheap, I do think Volpara is well worth a closer look.

The Wellard Ltd (ASX: WLD) share price is up 3.5% to 15 cents. This morning the agribusiness company released its half-year result which revealed a first-half net loss of $7.5 million. This loss was, however, a big improvement on the prior corresponding period when it posted a loss of $17.9 million and came despite the fact that revenue was down 42% on the first-half of FY 2017. While management doesn’t expect trading conditions to improve in the second-half, it is pleased with the early success of its cost cutting program. I would stay clear of Wellard until it is consistently growing its profits.

Instead of buying Wellard's shares I would be buying these exciting small cap shares that are growing at a rapid rate.

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 has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of VOLPARA FPO NZ. 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.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.