Motley Fool Australia

3 speculative small cap shares to watch

watch, watch list, observe, keep an eye on
Image source: Getty Images

Right now I think there are a number of shares in the small cap space that have significant growth potential.

While not all of them will go on to be a success, three that I am watching closely are listed below.

Here’s why I think they should be on your watchlist:

Auscann Group Holdings Ltd (ASX: AC8)

I think that AusCann could have a bright future ahead of it if the Australian healthcare sector embraces medicinal cannabis. Especially given its sizeable production capabilities, strong management team, strategic ties with cannabis giant Canopy Growth Corp, and first-mover advantage. It is still early days, but I am optimistic that its education program will bring prescribing general practitioners on side and give the company a shot at winning a share of the lucrative chronic pain management market.

Bubs Australia Ltd (ASX: BUB)

I think that this goat milk infant formula and baby food company has done incredibly well at growing its distribution network significantly over the last 12 months. This puts it in a position to follow in the footsteps of A2 Milk Company Ltd (ASX: A2M) in the China market, all being well. However, its sales have been a touch underwhelming thus far, so I’m holding off an investment until I see signs that consumers are taking to its products. After all, you could have the best distribution network in the world, but without willing buyers it is all for nothing.

Longtable Group Ltd (ASX: LON)

I think that Longtable, formerly known as Primary Opinion Ltd, is a growing food company that investors should watch out for. The company is headed by Lauran McBain, the former CEO of Bellamy’s Australia Ltd (ASX: BAL). At the end of 2017 Longtable raised $43 million in order to fund the acquisition of leading biodynamic-organic dairy products company B.-d Farm Paris Creek. This complements its existing stake in Maggie Beer’s product range. If McBain can recreate her success at Bellamy’s with Longtable, then Longtable could be a real star of the future.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. 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 Scott Phillips.

Related Articles...

Latest posts by James Mickleboro (see all)