If you’re a fan of investing in small cap shares, then you may want to look at the ones listed below.
These companies could have very bright futures ahead of them. Here’s what you need to know about them:
Booktopia Group Ltd (ASX: BKG)
The first ASX small cap share to look at is Booktopia. It is an online book retailer which has been growing very strongly.
For example, late last month it released its half year update and revealed a record month in December and a record half.
Booktopia shipped a total of 4.2 million units for the six months, up 40% on the prior corresponding period. Impressively, 728,000 of these units were shipped during the final month of the half. This was driven by the shift to online shopping and its investment in additional automation and increased capacity at its distribution centre.
This ultimately underpinned a 52% increase in unaudited half year revenue to $113 million and a 506% increase in adjusted operating earnings to $8 million.
Analysts at Morgans are positive on the company. They recently put an add rating and $3.48 price target on its shares. The broker believes the company is well-placed to grow its market share and benefit from operating leverage.
MyDeal.com.au Limited (ASX: MYD)
MyDeal.com.au is another ecommerce company which could be a good option for small cap investors.
Thanks to the shift to online shopping, which has accelerated over the last 12 months, MyDeal has been growing rapidly. For example, the company recently released its first half update which revealed that gross sales increased 217% over the same period last year to $126.7 million. This was driven by a strong jump in active customers to a record 813,764 and increased repeat use.
Looking ahead, management intends to use the proceeds from its $40 million IPO to drive future growth. This includes growing its private label business and investing in advertising to grow its customer base and brand.
Morgans is also a fan of MyDeal and currently has an add rating and $1.70 price target on its shares.
Where to invest $1,000 right now
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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
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More reading
- 3 very exciting small cap ASX shares to watch
- 2 exciting small cap ASX shares
- 3 fast-growing small cap ASX shares to watch
- Here are 3 ASX IPOs this fund manager was buying
- 3 growing small cap ASX shares to watch
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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