I think there are a good number of shares at the small end of the market that have the potential to generate strong returns for investors over the next few years.
Three small cap shares that I think are worth watching very closely this month are listed below. Here’s why I like the look of them:
Audinate Group Limited (ASX: AD8)
Audinate is a leading provider of digital audio visual networking technologies which are quickly becoming the de facto standard in the music and audio industry. Thanks to this, the significant expansion of the Dante product offering, and increased adoption by Original Equipment Manufacturers (OEMs), in FY 2019 it delivered a 44% increase in revenue to $28.3 million and a 395% rise in EBITDA to $2.8 million. I continue to believe that Audinate is well-placed to build on this and achieve similarly strong growth in FY 2020.
Dubber Corp Ltd (ASX: DUB)
Dubber is an Australian software company that develops cloud-based technologies that allows businesses to record, manage and analyse their phone calls and communications. Its AI technology even allows users to analyse the emotions and stress levels of a caller. This has caught the eye of businesses and led to a whopping 222% increase in active customers in FY 2019, which helped drive a 132% jump in revenue to $7.4 million. I expect more strong growth from Dubber in FY 2020.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is a fast-growing developer of digital health solutions that enable personalised, high-quality breast cancer screening based on objective measurements of breast density, compression, and radiation dose. Due to the quality and importance of the company’s software, recent acquisitions, and its growing footprint in North America, I’m confident the company is well-positioned to continue its strong customer and revenue growth in FY 2020.
And here are more top growth shares that I believe are well-placed to grow strongly in 2020 and generate outsized returns for investors.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AUDINATEGL FPO and VOLPARA FPO NZ. The Motley Fool Australia has recommended AUDINATEGL FPO and VOLPARA FPO NZ. 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.