10 exciting small cap ASX shares to watch in 2020

Audinate Group Limited (ASX:AD8), Serko Ltd (ASX:SKO), and these small cap ASX shares are the ones to watch in 2020…

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

I think the Australian share market is home to a large number of small cap shares that have the potential to grow materially larger in the future.

While history shows that not all small caps deliver on their potential, I think many of these shares have what it takes to do so.

With that in mind, here are 10 small cap shares to watch in 2020:

Alcidion Group Ltd (ASX: ALC)

Alcidion is an informatics solutions company. It provides software which aims to improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications. I feel it is well placed for growth thanks to the growing trend for healthcare organisations to shift to a paperless environment.

Audinate Group Limited (ASX: AD8)

Audinate is a digital audio-visual networking technologies provider. It has been growing at a rapid rate thanks to the significant expansion of its Dante product offering and the increased adoption by Original Equipment Manufacturers (OEMs). Due to the quality of the Dante product, I expect its strong growth to continue in FY 2020 and beyond.

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a provider of enterprise mobility software that allows sales and service organisations to increase sales win rates, reduce expenditures, and improve customer satisfaction. This is achieved through improved mobile worker productivity. It recently announced agreements with sports giant Nike and beauty retailer Sephora. I feel this bodes well for its performance in FY 2020.

Dubber Corp Ltd (ASX: DUB)

Dubber is an Australian software company that develops cloud-based communication technologies. These technologies allow businesses and corporate clients to record, manage and analyse phone calls and communications. In FY 2019 its revenues more than doubled to $7.4 million thanks to a massive increase in active customers.

LiveTiles Ltd (ASX: LVT)

Although I've been a little disappointed with its performance in 2019, I still feel LiveTiles is worth watching closely. It 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.

Opthea Ltd (ASX: OPT)

Opthea is a developer of novel biologic therapies for the treatment of eye diseases. Earlier this year the Phase 2b study of its OPT-302 combination therapy delivered exceptional results. If its phase 3 results are equally successful, OPT-302 could be a major cash cow. Current standard of care treatments for wet age-related macular degeneration and diabetic macular edema had sales of over US$3.7 billion and US$6.2 billion in 2018.

Paradigm Biopharmaceuticals Ltd (ASX: PAR)

Another growing biotech company is Paradigm. It is repurposing Pentosan Polysulfate Sodium (PPS) to treat osteoarthritis. The trial results of the drug, ZILOSUL, have been very promising. This is a big positive given its massive market opportunity. Management notes that there are over 31 million osteoarthritis sufferers in the United States alone.

Serko Ltd (ASX: SKO)

Serko is an online travel booking and expense management provider. It has been growing at a very strong rate over the last couple of years and looks well-positioned to build on this in FY 2020. Especially given its strong cash balance, sizeable market opportunity, and growing recurring revenues.

Straker Translations Ltd (ASX: STG)

Straker Translations is a translation services platform provider. It uses a combination of artificial intelligence and crowd-sourced human intelligence to provide language translation services at scale. Strong demand for its services led to it reporting an impressive 44% increase in revenue to NZ$24.6 million in FY 2019.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a provider of software that uses artificial intelligence imaging algorithms to assist with the early detection of breast and lung cancer. Thanks to the growing popularity of its software with radiologists across North America, Volpara has been growing its recurring revenues at a rapid rate. I expect this positive form to continue this year, especially with the help of recent acquisitions.

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 Alcidion Group Ltd, AUDINATEGL FPO, BIGTINCAN FPO, Serko Ltd, and VOLPARA FPO NZ. The Motley Fool Australia has recommended Alcidion Group Ltd, AUDINATEGL FPO, BIGTINCAN FPO, LIVETILES FPO, Serko Ltd, Straker Translations, 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.

More on Speculative

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Healthcare Shares

Buy this small cap ASX stock with a 'lucrative opportunity'

Bell Potter thinks this speculative stock could have major upside thanks to its US market opportunity.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Speculative

Broker says this speculative ASX stock could rise over 200%

This high risk option could have major upside according to analysts.

Read more »

Vanadium Resources share price person riding rocket indicating share price increase
Speculative

Meet the speculative ASX stock tipped to rise 180%

Bell Potter thinks this share could almost triple in value.

Read more »

People sit in rollercoaster seats with expressions of fear, terror and exhilaration as it goes into a steep downward descent representing the Novonix share price in FY22
AI Stocks

Brainchip share price tumbles 40% in the past year. What's next?

Brainchip shares have had a topsy-turvy year. So, what’s next for this speculative ASX AI technology stock?

Read more »

A man balances on a tightrope across rocks above the sea at sunset.
Speculative

My top high-risk, high-reward ASX shares to buy in March

If you go into it with your eyes open about the pitfalls, speculative stocks could be fine in a well…

Read more »

A group of three scientists talking excitedly while working in a lab on a diabetes test developed by Proteomics International Laboratories which is an ASX share tipped to explode by Alto Capital
Ask a Fund Manager

2 'outstanding' small-cap ASX shares that could explode: expert

Ask A Fund Manager: Alto Capital's Tony Locantro reveals a pair of small caps that he reckons have a bright…

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Technology Shares

Why is the Weebit Nano share price rocketing 23% higher?

Weebit Nano shares are on fire on Wednesday...

Read more »

Man presses green buy button and red sell button on a graph.
Broker Notes

Broker names 3 speculative ASX shares to buy

Here are three speculative shares rated as buys...

Read more »