I think a little exposure to the small side of the Australian share market can be a good thing for a portfolio.
After all, it wasn't that long ago that market darlings Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) were classed as small caps.
Since then they have generated mouth-watering returns for long-term shareholders. With that in mind, here are three small cap shares for your watchlist today:
Alcidion Group Ltd (ASX: ALC)
One exciting small cap share that I think is worth watching very closely right now is Alcidion. It is a growing informatics solutions company which provides software that aims to improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications. Thanks to the quality of its software and the growing trend for healthcare organisations to shift to a paperless environment, I believe it is well-positioned for strong growth over the coming years.
Bigtincan Holdings Ltd (ASX: BTH)
Another small cap share to look closer at is Bigtincan. It is a provider of enterprise mobility software, This allows businesses to increase their sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity. It counts a growing number of blue chip companies as customers. These include the likes of sports giant Nike and pharmaceutical company Merck.
Straker Translations Ltd (ASX: STG)
A final small cap share to watch is Straker Translations. As its name implies, Straker is a translation services platform provider. I believe it has strong long term growth potential thanks to its quality offering and massive global market opportunity. It uses a combination of artificial intelligence and human intelligence to provide highly efficient language translation services at scale. In FY 2019 it reported a 44% increase in revenue to NZ$24.6 million. Pleasingly, it has started FY 2020 just as strongly. In the first quarter management reported first quarter cash receipts growth of 38%.
