The Motley Fool

3 exciting small cap ASX shares to add to your watchlist

I think there are a number of shares at the small end of the market that have significant long term growth potential.

Three which I feel are well worth keeping a close eye on are listed below. Here’s why I like them:

Citadel Group Ltd (ASX: CGL)

Citadel is a specialist in managing information in complex environments through integrating know-how, systems and people to provide information on an anywhere-anytime basis. Although its performance in FY 2019 has been bitterly disappointing, this is partly due to its pivot to become a global software and services company under the Citadel 2.0 strategy. I remain confident that this short term pain will result in a lot of long term gain for shareholders, which could make it worth watching Citadel’s progress in the coming quarters.

PointsBet Holdings Ltd (ASX: PBH) 

PointsBet is a corporate bookmaker which recently listed on the Australian share market after raising $75 million through its IPO. I think it could be a great long term investment option due to the massive opportunity the company has in the United States thanks to its innovative sports betting products and services which it provides to clients via a scalable cloud-based technology platform. The company took a big step forward last week when it signed an agreement for digital sports betting and gaming services in the United States with Penn National Gaming. The agreement gives PointsBet the right to develop, own, market and operate, under the authority of the Penn National Gaming operating licenses.

Serko Ltd (ASX: SKO)

Serko is a leading online travel booking and expense management provider in the ANZ region. At the last count, more than 6,000 corporate customers across Asia Pacific, North America, the UK, and Europe were using Serko’s products to help manage their corporate travel programs and make sense of their corporate expenses. One major client the company has is banking giant Australia and New Zealand Banking Group (ASX: ANZ), which I believe is a testament to the quality of its offering. Demand was strong in FY 2019 and this looks set to remain the case in FY 2020 with management providing total operating revenue growth guidance of between 20% and 40%.

And here is another exciting small cap share which could be destined for very big things in the future.

One ASX Stock For An Estimated $US22 Billion Marijuana Market

A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming. To the tune of an estimated $US22 billion.

Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.

Here's the best part: we think there's one ASX stock that's uniquely positioned to profit immensely from this explosive new industry... taking savvy investors along for what could be one heck of a ride.

AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.

Simply click below to learn more on how you can profit from the coming cannabis boom.

Click here to find out more

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Citadel Group Ltd, Pointsbet Holdings Ltd, and Serko 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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.