Stock Pick

  • Are these small cap ASX tech shares the next Afterpay or Appen?

    Cyber technology and software image

    The likes of Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) weren’t always multi-billion dollar tech companies.

    At one stage they were small cap tech shares flying under the radar, just like the ones listed below.

    Whether these three shares will follow in their footsteps, only time will tell, but I think they are well worth keeping a very close eye on. Here’s why I like them:

    ELMO Software Ltd (ASX: ELO)

    The first small cap ASX tech share to watch is this cloud-based human resources and payroll software company. ELMO provides users with a unified platform that streamlines processes such as recruitment, on-boarding, learning, and payroll. It has a sizeable market opportunity in the ANZ market and the potential to expand globally in the future. This is thanks to its platform being jurisdiction agnostic.

    Volpara Health Technologies Ltd (ASX: VHT)

    Another small cap ASX tech share to watch is this healthcare technology company. Volpara’s software uses artificial intelligence imaging algorithms to assist with the early detection of breast cancer. Demand for its software has been growing strongly, leading to the company recently delivering a 172% increase in annual recurring revenue (ARR) to NZ$18 million in FY 2020. This is still only scratching at the surface of an estimated US$750 million ARR opportunity in breast cancer screening.

    Whispir (ASX: WSP)

    A final small cap ASX tech share to watch is this software-as-a-service communications workflow platform company. It provides an industry-leading software platform that allows users to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. During the first half of FY 2020, its annualised recurring revenue increased 22% to $36.7 million. Pleasingly, the second half looks set to be even stronger thanks to the work from home initiative.

    And here are more exciting shares which could be stars of the future…

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    Learn More

    *Extreme Opportunities returns as of June 5th 2020

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    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 VOLPARA FPO NZ and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Elmo Software. The Motley Fool Australia owns shares of and has recommended Elmo Software. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended VOLPARA FPO NZ and Whispir Ltd. 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.

    The post Are these small cap ASX tech shares the next Afterpay or Appen? appeared first on Motley Fool Australia.

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  • 3 high quality ASX dividend shares for income investors to buy

    dividend shares

    Unfortunately for income investors, it looks likely to be some time until interest rates return to normal levels again.

    In light of this, I continue to believe the share market is the best place to earn a passive income.

    But which ASX dividend shares should you buy out of the hundreds on offer? Three that I would buy are listed below:

    Coles Group Ltd (ASX: COL)

    The first dividend share to look at buying right now is Coles. I think the supermarket giant is a top option due to my belief that it is well-placed to grow both its earnings and dividend at a solid rate during the 2020s. This is thanks to the positive industry outlook, its long track record of delivering same store sales growth, and its cost cutting and automation plans. At present I estimate that Coles’ shares offer investors a fully franked 3.7% FY 2021 dividend.

    Rural Funds Group (ASX: RFF)

    Another dividend share that I would be buying is Rural Funds. This property group owns a diversified portfolio of high quality Australian agricultural assets which include cattle properties, vineyards, and orchards. One of the main attractions to the company for me is its long tenancy agreements. With a weighted average lease expiry of over a decade and rental increases built into contracts, Rural Funds appears perfectly positioned to consistently increase its distribution on a yearly basis. This will be the case in FY 2021, with management intending to lift its distribution by 4% to 11.28 cents per share. This represents a 5.4% yield.

    Vanguard Australian Shares High Yield ETF (ASX: VHY)

    A final dividend share for income investors to look at is the Vanguard Australian Shares High Yield ETF. I think this exchange traded fund is a great option because it gives investors exposure to a diverse group of high yielding ASX dividend shares through a single investment. This could make it ideal for investors that don’t have enough funds to maintain a truly diverse portfolio. At present I estimate that its units provide a forward dividend yield of at least 4.5%.

    3 “Double Down” Stocks To Ride The Bull Market

    Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.

    He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.

    See the Double Down Stocks

    *Extreme Opportunities returns as of June 5th 2020

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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.

    The post 3 high quality ASX dividend shares for income investors to buy appeared first on Motley Fool Australia.

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  • Cloudflare sees a 50% increase in traffic, rise in hacking: CEO

    Cloudflare sees a 50% increase in traffic, rise in hacking: CEOCloudflare CEO and Founder Matthew Prince joins Yahoo Fiance’s Alexis Christoforous and Brian Sozzi to discuss a rise in cyberattacks amid the coronavirus pandemic, in addition to its preparation for the 2020 election and more.

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