A new year is upon, so what better time to look at making changes to your portfolio.
If you're looking at adding a couple of small cap shares to it, then the small caps listed below could be well worth considering.
Here's why I think they could be strong performers in 2019:
Baby Bunting Group Ltd (ASX: BBN)
One of my favourite options in the retail sector right now is Baby Bunting. The baby products retailer had a difficult FY 2018 due to the closure of a number of its biggest competitors which led to heightened clearance activities. But with these activities now over and competition dwindling, Baby Bunting looks perfectly positioned to return to growth again in FY 2019. In fact, with margins widening due to its stronger buying power and lower competition, management expects EBITDA growth in the region of 34% and 45% this year.
Megaport Ltd (ASX: MP1)
Megaport is a global provider of elastic interconnection services in data centres and counts the likes of blue-chip companies such as AON and News Corp amongst its growing client base. Due to the cloud computing market growing at an incredible rate and data consumption rising fast, I believe demand for its services will continue increasing strongly over the next decade. This certainly has been the case so far in FY 2019, with Megaport recently reporting a 20% increase in its monthly recurring revenue to $2.4 million during the first quarter.
Telix Pharmaceuticals Ltd (ASX: TLX)
Telix is a clinical-stage biopharmaceutical company focused on the development of diagnostic and therapeutic products based on targeted radio-pharmaceuticals. The company has been very busy this year with trials, collaborations, and acquisitions. In respect to the latter, this morning the company advised that its acquisition of Advanced Nuclear Medicine Ingredients (ANMI) has completed successfully. ANMI develops innovative solutions in the manufacture and packaging of therapeutic products to enable fast, easy preparation and use in hospitals and the radio-pharmacy setting.
