MENU

3 small cap shares that could be destined for big things

Although small cap shares carry a lot of risks, I think if your risk profile allows it, they can be a great addition to a balanced portfolio.

After all, you only need to look at the performance of the Small Ordinaries (Index: ^AXSO) (ASX: XSO) over the last three years to see this.

During this time the Small Ordinaries has gained 23%, compared to a 12% gain by the All Ordinaries.

With that in mind, here are three small cap shares I think could be worth looking closer at:

Audinate Group Limited (ASX: AD8)

Audinate is a digital audio company that develops hardware and software solutions for the professional audio-visual industry. The company was a strong performer in FY 2018, growing full year revenue by 30% to $19.7 million. Pleasingly, this strong form has continued in FY 2019 with a record first quarter result. Last week management advised of first quarter cash collections of $6.8 million, up 51% on the prior corresponding period. This was driven by solid core chips, cards and modules sales, along with strong demand for AVIO adapters.

Paragon Care Ltd (ASX: PGC)

Another small cap share worth considering is this integrated services provider to the healthcare and aged care markets. As well as operating in two markets that are expected to grow strongly over the coming years, Paragon Care has opportunities to accelerate its growth through acquisitions after a recent $45.2 million placement. This should put it in a position to continue growing its dividend, which currently provides a trailing fully franked 4.5% yield.

Serko Ltd (ASX: SKO)

This New Zealand-based travel and expense technology solutions provider is a recent listing on the Australian share market. I’ve been impressed with what I’ve seen since its listing and believe it could be worth a look. Serko’s services are used by a growing number of companies in the travel industry including travel agent giant Flight Centre Travel Group (ASX: FLT). This year the company is expecting to deliver revenue growth of up to 30%.

And finally, here are a few more small to mid cap sized shares that could be destined for big things. Do you own them?

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 Atlassian.

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 and has recommended AUDINATEGL FPO and Flight Centre Travel Group Limited. The Motley Fool Australia has recommended Paragon Care 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.

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!