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5 exciting small cap ASX shares to watch in 2020

If you’re a fan of investing in small cap shares, then you’re in luck.

Right now, I believe there are a large number of quality options at the small end of town.

Five standouts are listed below. Here’s why I think these ASX small cap shares should be on your watchlist:

Alcidion Group Ltd (ASX: ALC)

Alcidion is an informatics solutions company. It provides increasingly popular software which has been designed to improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications. I believe it is well-positioned thanks to the growing trend for healthcare organisations to shift to a paperless environment.

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a provider of enterprise mobility software. Its software allows sales and service organisations to increase their sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity. It recently announced the addition of both sports giant Nike and global beauty retailer Sephora as customers. I feel bodes well for its performance in FY 2020 and beyond.

ELMO Software Ltd (ASX: ELO)

ELMO is a cloud-based human resources and payroll software company. It provides a unified platform to streamline processes for employee administration, recruitment, on-boarding, learning, performance, remuneration, compliance training and payroll. It has been a strong performer over the last couple of years and looks well-placed to continue this positive form in FY 2020.

Serko Ltd (ASX: SKO)

Serko is an online travel booking and expense management provider. It has really caught the eye this year thanks to an impressive performance in FY 2019. Due to strong demand from new and existing customers, Serko posted a 28% increase in total operating revenue to NZ$23.4 million. Pleasingly, the company has started FY 2020 on a very positive note and is on track to achieve its operating revenue growth guidance of 20% to 40%.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a provider of healthcare software that uses artificial intelligence imaging algorithms to assist with the early detection of breast and lung cancer. It has been a strong performer over the last few years thanks to the growing popularity of its software with radiologists across North America. I expect this positive form to continue this year, especially with the help of recent complementary acquisitions.

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 and recommends Elmo Software. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Alcidion Group Ltd, BIGTINCAN FPO, Serko Ltd, and VOLPARA FPO NZ. The Motley Fool Australia has recommended Alcidion Group Ltd, BIGTINCAN FPO, Elmo Software, Serko Ltd, 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.

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