If you're interested in small cap shares, then you are in luck. Because right now there are a good number trading on the ASX which I think have a lot of potential.
Three which I think would be worth keeping a very close eye on this year are listed below. Here's why I like them:
Alcidion Group Ltd (ASX: ALC)
The first small cap share is Alcidion. It is an informatics solutions provider which I think is worth watching very closely. Earlier this week Alcidion released its first half results and revealed $15.4 million of revenue to be recognised in FY 2020. This is almost as much as it achieved in the whole of FY 2019. This was driven by the growing demand for its software, which has been designed to improve the efficacy and cost of delivering services to patients and reduces hospital-acquired complications.
Bigtincan Holdings Ltd (ASX: BTH)
Bigtincan is a provider of enterprise mobility software globally. Its software is being used by a growing number of blue chip companies such as Nike, Sephora and Sony Playstation. They are using its software to increase their sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity. This strong demand led to Bigtincan's annualised recurring revenues (ARR) reaching $32.4 million at the end of the first half. This represents an increase of 55% since the same time last year.
Volpara Health Technologies Ltd (ASX: VHT)
A third small cap share to watch is Volpara. It is a fast-growing provider of software that uses artificial intelligence imaging algorithms to assist with the early detection of breast and lung cancer. Volpara's software continues to grow in popularity with radiologists across North America, which has led to rapid recurring revenue growth. I expect this positive trend to continue this year and be supported by recent acquisitions.
