A new year is upon us, so what better time to look at potential new additions to your portfolio.
If you're interested in gaining a little exposure to the small side of the market, then the three ASX shares listed below could be the ones to do this with.
Here's why I think these ASX small cap shares have a lot of potential:
Bigtincan Holdings Ltd (ASX: BTH)
BigTinCan is a provider of enterprise mobility software. Its key product is the BigTinCan Hub, which is software that simplifies the sales process, with a particular emphasis on maximising the benefits of mobile devices. This essentially helps companies get the best out of their salesforces, boosting productivity and sales. Demand for its software from big name companies has been growing strongly. This recently led to BigTinCan announcing agreements with sports giant Nike and beauty retailer Sephora. I think it is one to watch in 2020.
Paradigm Biopharmaceuticals Ltd (ASX: PAR)
Another small cap ASX share to watch in 2020 is Paradigm. It is a biopharmaceutical company focused on repurposing Pentosan Polysulfate Sodium (PPS) to treat osteoarthritis. Management estimates that this market is worth as much as US$27.9 billion per annum in the United States. The trial results of its drug, ZILOSUL, have been very promising. This has allowed it to raise significant funds through a capital raising, leaving it with a cash balance of ~$75 million at the last count. I believe this is more than enough to see Paradigm through to a commercial launch of ZILOSUL if its trials go to plan.
Serko Ltd (ASX: SKO)
A final small cap share to watch is Serko. It is an online travel booking and expense management provider. In FY 2019 Serko continued to experience strong demand from new and existing customers, leading to an impressive 28% increase in total operating revenue to NZ$23.4 million. This strong form has continued in FY 2020, putting Serko on track to achieve its operating revenue growth guidance of 20% to 40%. This has gone down well with investors, allowing the company to raise NZ$45 million to accelerate its growth. A cornerstone investor in this capital raising was US$85 billion travel booking giant Booking.com.
