If you're a fan of investing in small cap shares, then the three shares listed below could be worth a closer look.
I believe these three shares are amongst the most promising options at the small end of town and could generate strong returns for investors in the 2020s if they live up their potential.
Here's why I think they could be good long term options:
Alcidion Group Ltd (ASX: ALC)
Alcidion is a healthcare informatics solutions company. It provides popular software which has been designed to improve both 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. Although the pandemic could put purchasing decisions on hold by healthcare organisations and stifle its short term growth, I remain confident that its long term growth outlook is very positive.
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. Pleasingly, Bigtincan appears to have been unaffected by the coronavirus pandemic and remains on course to achieve its guidance in FY 2020. It is targeting year on year organic revenue growth in the range of 30-40% with stable retention.
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 growing at a strong rate over the last few years and has continued this trend in FY 2020 despite the pandemic. It recently advised that its third quarter cash receipts were up 39.4% on the prior corresponding period to $13.3 million. This allowed the company to reaffirm its guidance for the full year.
