If you're on the lookout for a little exposure to the small side of the market, then you're in luck.
I believe there are a number of small cap ASX shares that have strong long-term growth potential.
Three which I think could be worth adding to your watchlist today are listed below. Here's why I like them:
Alcidion Group Ltd (ASX: ALC)
I think this healthcare informatics solutions company is worth watching closely. It provides a number of software solutions which have been designed to improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications. Given the growing trend for healthcare organisations to shift to a paperless environment, I think it is well-positioned for long term growth once the pandemic passes.
Audinate Group Limited (ASX: AD8)
Audinate is a digital audio-visual networking technologies provider which has achieved very strong sales growth in recent years. This has been driven largely by the increasing demand for its Dante product. This award-winning audio over IP networking solution is used widely across the professional live sound, commercial installation, broadcast, and recording industries globally. Unfortunately, demand for Dante fell materially during the pandemic, leading to an underwhelming FY 2020 result. However, given its strong balance sheet, industry-leading products, and significant market opportunity, I think it could be worth being patient with the company.
People Infrastructure Ltd (ASX: PPE)
People Infrastructure is a leading workforce management company that delivers innovative solutions to workforce challenges. It has also been disrupted by the pandemic, but still expects to deliver a strong full year result this month. In May the company suggested it would deliver normalised EBITDA in the range of $24 million to $25 million in FY 2020. This will be 35% to 40.5% increase year on year. So with its shares still down 44% from their 52-week high, I think it is definitely worth a closer look.
