MENU

3 speculative small cap shares on my watchlist

I’m a big fan of small cap shares and believe a little exposure to this area of the market can be a great thing for a portfolio.

And while there are some high quality and profitable small cap shares like ELMO Software Ltd (ASX: ELO) that are investable right now, not all of them are ready to be invested in.

I think that the three small cap shares listed below have a lot of potential, but they are still very much at that speculative stage and should remain on your watchlist for the time being.

Bubs Australia Ltd (ASX: BUB)

I think that this goat milk infant formula company would have to be one of the most promising but high risk shares on the Australian share market. The company has signed countless distribution agreements that will allow it to reach millions of Chinese parents. But only time will tell whether the product resonates well with them in such a competitive environment. While it could become the next A2 Milk Company Ltd (ASX: A2M), it is too soon to know.

Lepidico Ltd (ASX: LPD)

Lepidico is a lithium-focused mineral exploration company which counts lithium giant Galaxy Resources Limited (ASX: GXY) as a major shareholder. As well as having a promising portfolio of assets, Lepidico also owns the technology behind a metallurgical process that has successfully produced lithium carbonate from non-conventional sources. Management believes that the L-Max process has the potential to disrupt the lithium market by providing additional lithium supply from alternative sources.

Longtable Group Ltd (ASX: LON)

Late last year this food company raised $43 million to fund the acquisition of leading biodynamic-organic dairy products company, B.-d Farm Paris Creek. This transformational acquisition adds to its interest in the Maggie Beer product range and could provide it with significant growth in the future. Especially given its relatively small distribution footprint and capacity to double its production after recent factory upgrades. In addition to this, the company has an experienced CEO in Laura McBain, who was previously in charge of Bellamy’s Australia Ltd (ASX: BAL).

Here's another major investment opportunity that investors might want to consider getting in early with.

The Rocket Fuel of the AI Boom

One of the world’s richest people is sounding the alarm on what could be a trillion-dollar technology.

Everyone is talking about the artificial intelligence revolution.

Harvard Business Review calls it, “the most important general-purpose technology of our era.”

One Google Insider predicts AI, “will be as transformative as the discovery of electricity.” And it already is transforming industry after industry.

After all we have been hearing about AI for years…but it never really lived up to the hype…so what’s finally unlocked this huge tidal wave of innovation?

Click here to learn more!

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of and has recommended ELMOSFTWRE FPO. 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!