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3 exciting small cap shares that could be destined for big things

If you love small cap shares, then you’re in luck because I believe there are a good number on the Australian share market with significant potential.

Three that I think are worth taking a close look at are listed below. Here’s why I like them:

Citadel Group Ltd (ASX: CGL)

Citadel is a software and services company which specialises in information and data management. While it has a number of offerings, the one that I am most bullish on is its Citadel-IX cloud-based enterprise information management platform. This platform allows its users to securely access and transfer proprietary and sensitive information remotely. Given the growing importance of data security, I believe Citadel is well positioned to continue its strong growth over the coming years. Furthermore, I think a recent pullback in its share price could potentially be a buying opportunity.

ELMO Software Ltd (ASX: ELO)

ELMO Software is a fast-growing provider of cloud-based human resources and payroll software solutions in the ANZ region. It has been an impressive performer since hitting the ASX boards in 2017 and has seen its shares rocket significantly higher thanks to the continued outperformance of its prospectus forecasts. Pleasingly, this form has continued in FY 2019. It recently reported a 91% increase in quarterly cash receipts on the prior corresponding period to $10.3 million. Like Citadel and most tech shares, it has recently experienced a reasonable pullback in its share price that could prove to be a good entry point for investors.

Volpara Health Technologies Ltd (ASX: VHT)

This healthcare technology company is one of my favourite small cap shares on the local market. It provides a breast imaging analytics and analysis software that has been growing its share of the U.S. breast screening market at an impressive rate. Earlier this month management confirmed that it is targeting a 9% share by the end of the financial year, up from 5.4% currently. The beauty of the product is that with much of its breast imaging analytics data flowing to the cloud, the company also has one of the biggest cross-vendor data sets in mammography. Management aims to use this data to not only find key insights to help detect breast cancer early but also to develop new products that can help increase its average price per patient.

If it's too soon for you to invest in the shares listed above then I would suggest you consider these blue chip growth shares that have been tipped as potential market beaters in 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 ELMOSFTWRE FPO and VOLPARA FPO NZ. 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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