There certainly are a lot of options for investors to choose from at the small end of the market.
Three that are popular with small cap investors are listed below. Are these ASX small cap tech shares in the buy zone today?
Bigtincan Holdings Ltd (ASX: BTH)
Bigtincan is a small cap tech share that I think has a lot of potential. It is a provider of enterprise mobility software. This software platform is used by sales and service organisations to increase their sales win rates, cut expenditures, and improve customer satisfaction. It has proven very popular with many blue chip companies, leading to the company generating strong recurring revenue growth. One of its most noteworthy customers is Nike. Bigtincan recently signed a three-year deal with the sports giant. I would class it as a buy for investors with a high tolerance for risk.
LiveTiles Ltd (ASX: LVT)
LiveTiles is a digital workplace platform provider that is aiming to simplify processes and enhance productivity through the creation of internal dashboards, intranet portals, and collaborative online working environments. Whilst I think its platform is high quality and the company has a lot of potential, I was concerned by its poor showing in the first quarter. During the quarter LiveTiles posted just a 7% quarter on quarter lift in ARR to $42.9 million. Its performance will need to improve drastically if it is to achieve its target of growing its ARR organically to $100 million by June 2021. I would class it as a hold for now and suggest investors wait for it next quarterly update before making a move.
Straker Translations Ltd (ASX: STG)
Another small cap tech share I think is worth looking at is Straker Translations. It is a translation services platform provider using a combination of artificial intelligence and human intelligence to provide language translation services at scale. It was a strong performer in FY 2019, reporting a 44% increase in revenue to NZ$24.6 million. The good news is that it has started FY 2020 just as strongly. It recently reported first quarter cash receipts growth of 38%. I think it could be a good long term option for small cap investors.
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
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 BIGTINCAN FPO. The Motley Fool Australia has recommended BIGTINCAN FPO, LIVETILES FPO, 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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