If you’re looking to gain exposure to the small side of the market, then you might want to take a look at the ASX shares listed below.
Here’s why these three small cap ASX shares could be ones to watch:
Carbon Revolution Ltd (ASX: CBR)
Carbon Revolution is an advanced manufacturing company. It designs, manufactures, and markets single piece carbon fibre wheels for motor vehicles. By manufacturing wheels this way, the company is able to reduce their weight materially. Management estimates that these weight savings can result in up to 40% reductions in inertia, which is a very big deal for car companies that are always looking for ways to make their vehicles more efficient. Among its customers are car giants such as Ford and Ferrari.
Damstra Holdings Ltd (ASX: DTC)
Damstra is a growing integrated workplace management solutions provider. Its cloud-based workplace management platform is used by businesses globally to track, manage, and protect their workers and assets. Damstra has been a solid performer over the last couple of years and has continued this strong form in FY 2021. During the first half of FY 2021, the company delivered a 29.6% increase in revenue to $13.3 million. Given that management estimates that its total addressable market will be worth US$20 billion by 2022, this gives it a very long runway for growth.
Pointerra Ltd (ASX: 3DP)
A final small cap to watch is Pointerra. It is a technology company focused on the global commercialisation of its unique 3D geospatial data technology. Pointerra provides a powerful cloud based solution for managing, visualising, analysing, and sharing massive 3D point clouds and datasets. This solves entrenched problems associated with digital asset management workflows and allows very large 3D datasets to be managed and analysed without the need for expensive and time-consuming high-performance computing. Management estimates that its market opportunity is currently worth an enormous $500 billion annually.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
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.
*Returns as of February 15th 2021
More reading
- 2 highly rated ASX tech shares to buy this month
- These ASX tech shares are all trading near their lowest prices in months
- 3 exciting small cap ASX shares that could be destined for big things
- The FINEOS (ASX:FCL) share price is now 30% off its August highs
- What’s happening with the Damstra (ASX:DTC) share price?
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 and recommends Carbon Revolution Limited and Damstra Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointerra Limited. The Motley Fool Australia has recommended Carbon Revolution Limited, Damstra Holdings Ltd, and Pointerra Limited. 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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