I think having a little exposure to the small cap side of the market would be a very good thing for a portfolio.

You only need to look at how successful investing in the Afterpay Ltd (ASX: APT) IPO in 2016 would have been to see why.

And while very few small cap shares will be as successful as Afterpay, there are a number on the market that have the potential to follow in its footsteps.

Three small cap shares I think have enormous potential are listed below:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a fast-growing provider of enterprise mobility software. The company’s software allows sales and service organisations to increase their sales win rates, reduce expenditures, and improve customer satisfaction. This is achieved through improved mobile worker productivity. It counts a wide range of blue chips as customers and continues to grow during the pandemic. Bigtincan recently reaffirmed that it is on course to achieve organic revenue growth in the range of 30% to 40% in FY 2020.

Serko Ltd (ASX: SKO)

Serko is a technology company focused on innovative solutions that address the challenges of corporate travel and expense management. It was growing at a very strong rate over the last fews years thanks to the increasing popularity of its Zeno product. And while its performance looks likely to be negatively impacted by the coronavirus, I expect it to bounce back strongly once conditions ease.

Whispir (ASX: WSP)

Whispir is a software-as-a-service communications workflow platform provider. Its industry-leading software platform allows companies to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. This helps make operations more efficient and can cut down the number of service desk support calls. It counts a number of big names as customers such as Disney and Foxtel.

More reading

• 3 top ASX shares to buy now and hold for 10 years
• If you invested $10,000 in the Afterpay IPO, this is how much you’d have now
• Is the Zip share price in the buy zone?
• Why Afterpay, Flight Centre, Mesoblast, & Sezzle shares are dropping lower
• Safe dividend stocks to buy today for the COVID-19 world

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 Serko Ltd. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Serko Ltd 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 Could these small cap ASX shares be the next Afterpay? appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) is having an off day and is trading notably lower in late morning trade. At the time of writing the benchmark index is down 0.8% to 5,380.4 points.

Four shares that are not letting that hold them back are listed below. Here’s why they are charging higher:

The Breville Group Ltd (ASX: BRG) share price has jumped 10% to $20.52. This morning Breville completed the institutional component of its equity raising. The appliance maker raised $94 million at $17.00 per new share. This represents a discount of 9.1% to its last close price. The company also released a positive trading update which revealed strong sales growth in the second half. Between January 1 and April 30, Breville’s revenue was up 32% on the prior corresponding period. Sales grew 25% in March and 21% in April.

The Graincorp Ltd (ASX: GNC) share price is up 6% to $3.49 following the release of its half year results. For the six months ended March 31, the grain exporter delivered an underlying net profit after tax of $55 million. This was an increase from a $48 million net loss after tax in the prior corresponding period.

The Mesoblast limited (ASX: MSB) share price has jumped 10% to $3.73. Investors have been buying the regenerative medicine company’s shares in recent weeks due to promising trials of its allogeneic cell therapy, remestemcel-L. The company is testing its efficacy in treating acute respiratory distress syndrome (ARDS), the most devastating symptom of COVID-19. Phase 2/3 trials are ongoing, with the dosing of some patients commencing last week.

The Newcrest Mining Limited (ASX: NCM) share price is up 4.5% to $29.30. A number of gold miners are pushing higher on Thursday after a solid rise in the gold price overnight. The precious metal rose amid speculation that the Federal Reserve will soon embark on further stimulus. In late morning trade the S&P/ASX All Ordinaries Gold index is up by almost 3%.

More reading

• This ASX 200 share is rocketing higher after delivering more strong sales growth
• 5 things to watch on the ASX 200 on Thursday
• This ASX 200 gold share is making the most of the gold rush
• ASX gold shares steady: Can gold provide your portfolio with defensive and safe returns?
• ASX 200 down 0.9%: CBA reveals $1.5bn COVID19 provision & gold miners charge higher

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. 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 Why Breville, Graincorp, Mesoblast, & Newcrest shares are charging higher appeared first on Motley Fool Australia.

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Should you cash out of this S&P/ASX 200 Index (ASX: XJO) rally?

The ASX 200 has had a pretty top few weeks. Since the lows we saw in late March, the ASX 200 has rallied almost 20%. That’s more than double the index’s long-term average annual return – albeit following a 37% crash earlier in the year.

Still, the confidence of many ASX investors would be well up from the widespread panic we saw in March. Some shares like the ASX banks have stabilised. Others like CSL Limited (ASX: CSL) are edging ever closer to their pre-crash highs.

But this begs the question – is now a good time to ‘cash out’ and lock in some gains? Particularly since the markets don’t seem to be factoring in that we’re about to go through the worst recession Australia has seen in decades.

Time to cash out?

It might be tempting to cash out of some or all of your holdings if you’re nervous about the markets right now. After all, cash is king in a market crash.

But here’s the problem.

Do you actually know what the markets will look like tomorrow, in two months, six months or a year’s time? Of course not, otherwise you wouldn’t be reading this article! Even the best investors in the world, like Warren Buffett, don’t try to pretend they know exactly what the markets will do next.

Plus, odds are (like most ASX investors), your portfolio still has some losses left over from the March crash. To paraphrase a great song, you can cash out any time you’d like, but you can never leave… your losses once you do so.

Yes, the ASX might crash the day after you cash out and you’ll look and feel like a genius.

But maybe it won’t. Maybe it will go on to hit new highs – stranger things have happened. As the legendary economist John Maynard Keynes once said, “Markets can remain irrational longer than you can remain solvent”. And if that happens, you probably won’t feel so smart.

And even if you do pull off a well-timed cash out, when are you going to jump back in? That’s two incredible punts you’re going to have to pull off.

Throw in the costs of jumping in and out of the markets (taxes, brokerage, fees etc.) and it’s a very narrow tightrope you’re trying to walk.

Foolish takeaway

Like most of us Fools, I think having a long-term mindset is the best way to invest in shares. Thus, I think trying to time the market by cashing out ‘before the crash’ is folly. Investing in shares means you’re in it for the good times and the bad – it’s all part of the game. Trying to dodge the inevitable will usually result in poor returns over the long run!

More reading

• This ASX 200 share is rocketing higher after delivering more strong sales growth
• If you invested $10,000 in the Afterpay IPO, this is how much you’d have now
• David Tepper believes we’re in the biggest stock bubble since 1999
• 5 things to watch on the ASX 200 on Thursday
• The latest ASX shares upgraded by brokers to “buy”

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Should you cash out of this ASX 200 rally? appeared first on Motley Fool Australia.

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