I think there are some great options for investors to choose from at the small end of the market.
Three of the best that I would buy this week are listed below. Here's why I think they are worth considering:
Audinate Group Limited (ASX: AD8)
Audinate is a digital audio company that is bringing the IT revolution to the audio-visual industry. Its Dante technology distributes audio signals across computer networks and is being used in thousands of installations globally. Demand has been so strong that revenue increased 30% to a record $19.7 million in FY 2018. Pleasingly, the strong form has continued this year and saw Audinate recently report record first quarter cash collections of $6.8 million, up 51% on the prior corresponding period.
ELMO Software Ltd (ASX: ELO)
ELMO is another small cap tech share which has caught my eye this year. It is a leading provider of cloud-based human resources and payroll software solutions and recently reported first quarter cash receipts growth of 91% on the prior corresponding period to $10.3 million. The good news is that this is still only scratching at the surface of a market opportunity in the ANZ region estimated by management to be worth $1.7 billion per year.
Volpara Health Technologies Ltd (ASX: VHT)
I feel that a recent pullback in the share price of this healthcare technology company could be a buying opportunity for investors that are willing to make a patient long-term investment. I have been impressed at the way its breast imaging analytics and analysis software has been winning a growing share of the U.S. breast screening market and don't expect things to slow any time soon. Especially after the company increased its reach through the expansion of its sales team. Overall, I feel confident that the company is well-positioned to achieve its target of a 9% share of the U.S. market in FY 2019.
