One side of the Australian share market which I think is a great place to look for investment ideas is the mid cap space.
I'm a big fan of mid cap shares as they offer stronger potential returns than large caps, but arguably carry less risk than small caps.
With that in mind, here are two mid cap ASX shares that I think are worth watching closely:
Jumbo Interactive (ASX: JIN)
Jumbo is an online lottery ticket seller and best-known as the operator of the Oz Lotteries website. The majority of the company's revenue is currently coming from the Oz Lotteries business, which is benefiting from the shift to online gambling. However, this won't be the case over the long term thanks to its Powered by Jumbo software-as-a-service (SaaS) business. The company is taking its Powered by Jumbo business global with the aim of capturing a slice of a US$303 billion total addressable market. It is worth noting that only 7% of this market is estimated to be online at present. I believe this gives it a significant runway for growth over the next decade as more gambling shifts online.
Opthea Ltd (ASX: OPT)
Opthea is a leading developer of novel biologic therapies for the treatment of eye diseases. I think it is well worth considering due to its very promising OPT-302 combination therapy. This therapy is targeting wet age-related macular degeneration and achieved very positive Phase 2b study results last year. The current standard of care treatments for wet age-related macular degeneration had sales of over US$3.7 billion in 2018. This gives it a sizeable market opportunity. In addition to this, the company is targeting diabetic macular edema (DME), which had sales of over US$6.2 billion in 2018. Though, recent results for DME haven't been as positive.
