3 exciting small cap ASX shares to add to your watchlist

Clover Corporation Limited (ASX:CLV) and these ASX small cap shares could have very bright futures ahead of them. Here's why I like them…

| More on:

Image source: Getty Images

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

At the small end of the Australian share market, I believe there are a good number of shares with the potential to grow into much larger entities in the future.

Three which I think ought to be on your watchlist right now are listed below. Here's why I think they have very promising futures:

Clover Corporation Limited (ASX: CLV)

The first small cap to watch is Clover. It is a producer of ingredients such as omega-3 oils that go into infant formula, supplements, and baby food. Clover has been growing at a strong rate over the last few years thanks largely to increasing demand for ingredients from infant formula manufacturers. Pleasingly, I'm confident that its strong growth can continue over the coming years. Especially given favourable changes to ingredient requirements in a number of key markets.

Mach7 Technologies Ltd (ASX: M7T)

Another small cap share to add to your watchlist is Mach7. It is a medical imaging data management solutions provider which offers software that helps inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes. Demand for its offering has been growing strongly, leading to Mach7 reporting a 158% increase in first half revenue to $9.1 million. Since then the company has announced the acquisition of Client Outlook. It is a leading provider of an enterprise image viewing technology and increases Mach7's total addressable market from US$0.75 billion to US$2.75 billion.

MNF Group Ltd (ASX: MNF)

A final small cap to watch is MNF Group. It specialises in Voice over Internet Protocol (VoIP) technology, which is used to convert analogue audio signals into digital data that can be sent over the internet. Demand for VoIP services has been growing very strongly this year because of the pandemic and the work from home initiative. So much so, in April MNF Group was able to reaffirm its full-year guidance for earnings before interest, tax, depreciation and amortisation (EBITDA) of between $36 million and $39 million. 

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 Clover Limited, MACH7 FPO, and MNF Group Limited. The Motley Fool Australia has recommended MACH7 FPO and MNF Group Limited. 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 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 »

Scared looking people on a rollercoaster ride representing the volatile Mineral Resources share price in 2022
Resources Shares

May was a rollercoaster ride for the Vulcan (ASX:VUL) share price

Shareholders in the ambitious lithium producer had to fasten their seat belts last month.

Read more »

Five stacked building blocks with green arrows, indicating rising inflation or share prices
Share Gainers

The ClearVue (ASX:CPV) share price is up 65% in a month. Here's why

The ClearVue Technologies Ltd (ASX: CPV) share price is up 65% in the last month. We take a look at…

Read more »

tech shares represented by woman holding hand out to touch icons on digital screen
Speculative

2 small cap ASX tech shares to buy now

Whispir Ltd (ASX:WSP) and this small cap ASX tech share could be quality options for investors after recent pullbacks...

Read more »

Speculative

2 small cap ASX shares you need to know about

Nitro Software Ltd (ASX:NTO) and this small cap ASX share could be the ones you need to know about right now.…

Read more »