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3 exciting small cap ASX shares to buy in September

A new month is upon us, so what better time to take a look at your portfolio and see if you can improve it with a few new additions.

If you have space for a few small cap shares then I would consider adding one of these potential stars of the future:

Opthea Ltd (ASX: OPT)

This developer of novel biologic therapies for the treatment of eye diseases has been an impressive performer this year thanks to the progress it has made with the Phase 2b study for its OPT-302 combination therapy. A recent update revealed that OPT-302 (2.0 mg) combination therapy showed statistical superiority for the most accepted and sensitive primary efficacy outcome. This could be a very big deal as the standard of care treatments for wet age-related macular degeneration (AMD) and diabetic macular edema (DME) had sales of over US$3.7 billion and US$6.2 billion in 2018, respectively.

Serko Ltd (ASX: SKO)

Serko is an online travel booking and expense management provider which has been growing at a very strong rate over the last couple of years. In FY 2019 the company experienced strong demand for its services from a number of blue chips, leading to it posting a 28% increase in operating revenue to NZ$23.4 million and a 26% lift in recurring revenue to NZ$20.7 million. This means that just over 88% of this revenue is classed as recurring, which I believe gives it a strong foundation to build its future growth on. In FY 2020 management has provided total operating revenue growth guidance of between 20% and 40%.

Straker Translations Ltd (ASX: STG)

I continue to believe that Straker Translations would be a great long-term investment option due to the quality of its operations and its sizeable global market opportunity. Straker is a translation services platform provider which uses a combination of artificial intelligence and human intelligence to provide highly efficient language translation services at scale. In FY 2019 Straker reported a sizeable 44% increase in revenue to NZ$24.6 million. I believe more of the same is coming over the next few years, especially considering its global market opportunity is expected to be worth US$66 billion per annum by 2022.

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 has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Serko Ltd and Straker Translations. 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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