Australian small cap investors certainly are a lucky bunch. In my opinion the local share market has a good number of small cap shares with bucket loads of growth potential.
Four up and coming shares that I think investors should be keeping a close eye on are listed below. While not all of them are ready to be invested in just yet, I think all are deserving of a spot on your watchlist.
They are as follows:
Bubs Australia Ltd (ASX: BUB)
Bubs is an up and coming goats milk infant formula company aiming to take on the likes of A2 Milk Company Ltd (ASX: A2M) in the lucrative China market. Earlier this week Bubs announced a major deal with China-based supply chain and service provider New Times Asia. The deal sees New Times Asia commit to buy $17 million worth of product in FY 2019, before rising to $24 million in FY 2020 and $37 million in FY 2021.
Nearmap Ltd (ASX: NEA)
Nearmap is a geospatial map technology provider that could be one to watch closely. Earlier this year the company finally appeared to have broken into the U.S. market successfully when it announced that annualised contract value had risen to US$10 million in the nation during the March quarter. If its strong form continues in the June quarter, I might consider an investment.
Redbubble Ltd (ASX: RBL)
Redbubble is an e-commerce company that operates a global online marketplace which connects independent artists with customers. I have been impressed with the company’s performance so far in FY 2018 and think it is well worth a closer look. In the first half of FY 2018 Redbubble recorded revenue of $102.3 million, up a solid 30% on the prior corresponding period.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara Health Technologies is a healthcare technology company which provides breast imaging analytics and analysis solutions. Such is the quality and growing popularity of its product, Volpara recently announced that its share of the U.S. market had grown to 3.2%. This was ahead of expectations and has led to annual recurring revenues increasing over 200% on FY 2017. Pleasingly, management aims to almost triple its market share in FY 2019.
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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 Nearmap Ltd. and VOLPARA FPO NZ. The Motley Fool Australia owns shares of A2 Milk and REDBUBBLE FPO. 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.