I believe there are a good number of quality companies at the small end of the market that could be destined for big things in the future.
While not all these shares will live up to their potential, five which I think are well worth watching closely in 2019 are listed below. Here’s why:
Citadel Group Ltd (ASX: CGL)
I believe Citadel Group is well-positioned to grow strongly in the future thanks to the growing amount of data being generated by businesses and the importance of keeping it secure. As a specialist in IT security and data management I believe demand for its popular Citadel-IX cloud-based enterprise information management platform could continue to grow strongly over the next decade. This platform allows users to securely access and transfer proprietary and sensitive information remotely.
Food Revolution Group Ltd (ASX: FOD)
Food Revolution is a food processing company which has products on the shelves of supermarkets including Coles Group Limited (ASX: COL) and Woolworths Limited (ASX: WOW). In FY 2018 it generated sales of approximately $35 million and is looking to build on this in FY 2019 through an expansion into the China market. In addition to this, this morning the company announced a supply contract with ALDI Australia for Apple Mango juice.
LiveTiles Ltd (ASX: LVT)
LiveTiles is a software company which offers a digital workplace platform that has been designed to increase collaboration and efficiency among employees. Thanks to its close ties with Microsoft and the engagement of a dedicated sales force, LiveTiles looks set to deliver further strong sales growth in FY 2019. In the first quarter it reported a 272% increase in annualised recurring revenue on the prior corresponding period.
Megaport Ltd (ASX: MP1)
I think that this provider of elastic interconnection services in data centres across the world is well-positioned to profit from the cloud computing boom. It recently provided a first quarter update which revealed that its strong growth has continued in FY 2019. During the quarter its monthly recurring revenue grew an impressive 20% on the previous quarter to $2.4 million. This puts it in a position to build on the 85% increase in annual revenue that it achieved in FY 2018.
Telix Pharmaceuticals Ltd (ASX: TLX)
Telix is a clinical-stage biopharmaceutical company led by the respected Dr Christian Behrenbruch. Telix is focused on the development of diagnostic and therapeutic products based on targeted radiopharmaceuticals. I’ve been very impressed with the progress that the company has made this year and think it will be one to watch in the healthcare sector in 2019.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
Motley Fool contributor James Mickleboro owns shares of TELIXPHARM DEF SET. The Motley Fool Australia owns shares of Citadel Group Ltd. 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.
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