Trends are hard to predict, but they’re also hard to ignore once the momentum gets going.
These two small caps are riding off industry trends in their various sectors.
It could mean big bucks, but it could also mean they crash and burn before they get the chance to make it.
Either way, you should do some research into these speculative players for further information.
Marley Spoon AG (ASX: MMM)
Somewhere along the line it became sought after to have uncooked meals delivered and ready to throw onto the frying pan. Meal-kit delivery service company Marley Spoon AG jumped on that bandwagon and continues to ride it.
Marley Spoon only has a market cap of $133 million at present, it’s super small, but since the German-based company listed on the ASX last month, punters have wondered if there’s something in its core business that has long-term potential.
There’s nothing in it for me, I’d just as soon chop up my own carrots, but I concede there is a definite niche opportunity for companies like Marley to cash in on time-poor executives and parents who want a healthy meal without the hassle.
Marley Spoon is, in essence, a fast food stock, and these guys can go either way, with the likes of Collins Foods Ltd (ASX: CKF) certainly stuck on a plateau of late in terms of share price, while Domino’s Pizza Enterprises Ltd (ASX: DMP) shares are on the incline – up 30% from its May low of $38.93 to sit at $51.39 at the time of writing.
While I’m not buying into Marley Spoon just yet, I am interested to watch it for a while.
It is certainly well-positioned to capitalise on a definite trend for outsourced meal kits which allow people to still cook their own meals, without having to do the pesky preparation.
WAM Global Limited (ASX: WGB)
WAM Global Limited is a recently-listed LIC managed by the respected Wilsons Asset Management Team with an aim to provide shareholders with risk-adjusted returns from a portfolio of international growth companies that are otherwise undervalued.
If you take a look at the other LICs Wilsons has managed, things look peachy for WAM Global, with WAM Capital Limited (ASX: WAM) logging fairly solid returns for decades, and WAM Research Limited (ASX: WAX) shares at a 52-week high today – sitting at $1.65 at the time of writing.
WAM Global is touted to combine the strategies of both its Capital and Research siblings in its approach to strategy, but WAM’s success so far in Australian stocks does not mean it will experience the same luck globally, so there is some risk involved in this one and uncertainty as to how it will fare.
But in terms of LICs I think WAM Global is an interesting one to watch and should make your weekend research list.
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Motley Fool contributor Carin Pickworth owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited and TPG Telecom Limited. The Motley Fool Australia has recommended Collins Foods Limited and Domino's Pizza Enterprises 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 Scott Phillips.