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Respected fund manager Wilson Asset Management (WAM) has recently identified two small cap ASX shares that it owns in its portfolio.

WAM operates several listed investment companies (LICs). Some focus on larger companies like WAM Leaders Ltd (ASX: WLE) and WAM Capital Limited (ASX: WAM).

There’s also one called WAM Microcap Limited (ASX: WMI) which targets small cap ASX shares with a market capitalisation under $300 million at the time of acquisition.

WAM says WAM Microcap targets the most exciting undervalued growth opportunities in the Australian microcap market.

The WAM Microcap portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 23.8% per annum since inception in June 2017, which is superior to the S&P/ASX Small Ordinaries Accumulation Index average return of 10.6%.

These are the two small cap ASX shares that WAM outlined in its most recent monthly update:

Dusk Group Ltd (ASX: DSK)

WAM Microcap said that Dusk was one of the significant contributors to the investment portfolio performance during December 2020.

The fund manager described Dusk as Australia’s leading retailer on home fragrance products such as candles, diffusers and essential oils through its 115 owned and operated stores across Australia and online.

In a December trading update, the small cap ASX share provided sales guidance for the first half of FY21 of between $90 million to $90.5 million, up from $58.7 million in the first half of FY20.

Its earnings before interest and tax (EBIT) guidance for the FY21 first half was between $26 million to $27 million, up from $9.7 million in the prior corresponding period.

During the coronavirus pandemic, WAM Microcap said that Dusk has benefitted from consumers spending more time at home which has increased demand for comfort-related products. The company estimates net cash at the end of December of approximately $33.5 million. The fundie continues to see a positive outlook for the company driven by the roll out of new stores across Australia.

Sovereign Cloud Holdings Ltd (ASX: SOV)

This business trades as AUCloud and was listed in December 2020. WAM Microcap described the small cap ASX share as an infrastructure as a service (IaaS) company supporting the secure and continuous delivery of information to the Australian government, the Australian Defence Force (ADF) and ‘critical national industry’ communities.

WAM Microcap invested in AUCloud through a pre-initial public offering investment, as part of the strategy implemented following the WAM Microcap capital raising in August 2020.

The fund manager said that AUCloud has a successful partner channel with a number of the largest global software companies and a strong market opportunity, with the company estimating the Australian government will spend in excess of $13 billion per year on information and communications technology through to 2030.

According to WAM Microcap, the small cap ASX share is well positioned to capitaliise on the investment initiatives as a direct provider of IaaS services and through a channel partner selling into the Australian government or ADF. The AUCloud share price rose more than 50% on its first day of trading.

More reading

• JB Hi-Fi (ASX:JBH) and this ASX retail share came out of 2020 in good health
• Why Galaxy (ASX:GXY) and these ASX shares just hit 52-week highs or better
• 3 small cap ASX shares to buy for 2021
• Wilson Asset Management thinks these 2 small cap ASX shares are a buy
• ASX 200 rises 0.5%

Motley Fool contributor Tristan Harrison owns shares of WAM MICRO FPO. 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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Luckily in this low interest rate environment, the Australian share market is home to a good number of shares that are expected to provide yields which are vastly superior to anything you’ll find with savings accounts and term deposits.

But which ASX dividend shares should you be buying next week when the market reopens? Listed below are two blue chip dividend shares that have recently been given buy ratings:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The first ASX dividend share to look at is banking giant ANZ Bank. With home loan growth tipped to accelerate, COVID-19 loan deferrals reducing nicely, and responsible lending rules easing, things are looking significantly more positive for the bank at present.

And with APRA removing dividend payment restrictions, this bodes well for dividends in FY 2021. In fact, according according to a note out of Citi, its analysts are forecasting a $1.20 per share dividend in FY 2021. This represents a fully franked 4.9% yield.

Citi also sees upside for its shares over the next 12 months. The broker has an add rating and $26.50 price target on its shares.

Telstra Corporation Ltd (ASX: TLS)

Another blue chip ASX dividend share to consider buying next week is Telstra. As with ANZ, Telstra has gone through a difficult period but appears to be coming out of it now. This is thanks to its T22 strategy, the arrival of 5G internet, and its plan to unlock value through asset sales.

One broker that is very positive on the telco giant is Macquarie. Its analysts recently retained their outperform rating and lifted the price target on its to $4.00.

Macquarie also expects the company to be able to maintain its 16 cents per share fully franked dividend for the foreseeable future. Based on the current Telstra share price, this equates to a 5% dividend yield.

More reading

• Brokers name 3 ASX shares to buy right now
• 3 top ASX dividend shares to buy for 2021 and beyond
• ASX dividends will be up 30% this year: fundie
• Here’s why the Downer (ASX:DOW) share price is edging higher today
• 2 ASX dividend shares with 4%+ yields

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

Appen Ltd (ASX: APX)

According to a note out of Macquarie, its analysts have retained their outperform rating but cut the price target on this artificial intelligence services company’s shares to $27.00. The broker notes that the Appen share price has pulled back materially over the last few months due COVID headwinds. It sees this as a buying opportunity and expects these headwinds to ease in 2021. Though, it does note that foreign exchange headwinds are unlikely to be going away any time soon. Hence why the broker has reduced its price target. The Appen share price ended the week at $22.70.

NEXTDC Ltd (ASX: NXT)

Analysts at Morgans have retained their add rating and $13.89 price target on this data centre operator’s shares. According to the note, the broker believes that NEXTDC is on course to at least achieve its guidance in FY 2021 and expects it to be reiterated at its half year results. Looking further ahead, Morgans believes NEXTDC’s outlook is very positive thanks to the structural shift to the cloud. The NEXTDC share price last traded at $11.81.

ResMed Inc. (ASX: RMD)

A note out of Credit Suisse reveals that its analysts have retained their outperform rating but trimmed the price target on this medical device company’s shares to $29.50. According to the note, the broker is expecting ResMed to report strong mask sales in FY 2021 due to COVID-19 related re-supplies. In addition to this, the broker believes ResMed is well-placed to benefit from the shift to home healthcare thanks to its high level of investment in out of hospital solutions in recent years. The ResMed share price ended the week at $27.90.

More reading

• 2 of the best blue chip ASX shares to buy
• 2 fantastic ASX growth shares to buy this month
• The latest ASX broker “buy” ideas that got a valuation upgrade
• 5 things to watch on the ASX 200 on Thursday
• 2 growing blue chip ASX shares to buy today

James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd. The Motley Fool Australia has recommended ResMed Inc. 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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If you’re a growth investor then you’re in luck. This is because the Australian share market is home to a large number of quality shares that have the potential to grow strongly in the coming years.

Two top growth shares that have been tipped as buys are listed below. Here’s why they are highly rated:

CSL Limited (ASX: CSL)

The first share to look at is CSL. It is one of the world’s leading biotherapeutics companies and home to the high quality CSL Behring and Seqirus businesses.

CSL Behring is the global leader in plasma therapies, whereas Seqirus is the second largest influenza vaccines business. Both have been growing at a solid rate in recent years and have been tipped to continue this trend in the future thanks to their leading therapies and lucrative research and development pipelines.

In respect to the latter, CSL’s pipeline contains a number of highly promising products that have the potential to generate significant revenues in the future. One of those is clazakizumab, which is being developed to treat kidney transplant rejection. This product alone could generate peak sales of US$5.4 billion eventually.

UBS recently retained its buy rating and $346.00 price target on CSL’s shares. This compares very favourably to the latest CSL share price of $274.60.

Nearmap Ltd (ASX: NEA)

Another ASX share to look at is Nearmap. It is an aerial imagery technology and location data company with operations in the ANZ and North American market.

Its aerial imagery and data insights shift location analysis out of the field and into the office. Management notes that this gives businesses the tools to scale quickly and bring their most important initiatives to life.

Thanks to geographic expansions, new growth initiatives, and the quality of its offering, management believes the company is well-positioned for growth in the future. As a result, it is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

Analysts at Morgan Stanley are positive on the company and have an overweight rating and $3.10 price target on its shares. This compares to the current Nearmap share price of $2.17.

More reading

• Afterpay and BrainChip were some of the most traded ASX shares last week
• One bullish growth signal for the Afterpay (ASX:APT) share price in 2021
• ASX 200 Weekly Wrap: ASX drops despite promises of more US stimulus
• 3 five-star ASX shares to buy in January
• 3 blue chip ASX growth shares to buy

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 CSL Ltd. and Nearmap Ltd. The Motley Fool Australia has recommended Nearmap Ltd. 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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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Blackmores Limited (ASX: BKL)

According to a note out of Citi, its analysts have retained their sell rating and $60.60 price target on this health supplements company’s shares. The broker has concerns over the company’s performance in the key China market. Particularly given its market research, which is pointing to market share gains by the is largest competitors. In addition to this, it notes that competition is intensifying in the ANZ market and the daigou channel remains challenged. The Blackmores share price ended the week at $71.63.

Magellan Financial Group Ltd (ASX: MFG)

Analysts at Morgan Stanley have retained their underweight rating and cut the price target on this fund manager’s shares to $41.20. According to the note, the broker has trimmed its price target to reflect changes in its business model that it feels reduces the appropriate price to earnings ratio that its shares trade at. In addition to this, it believes the market is not pricing in a number of risks it is facing and weaker returns from its funds. The Magellan share price last traded at $47.73.

QBE Insurance Group Ltd (ASX: QBE)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and $7.70 price target on this insurance giant’s shares. The broker notes that QBE has added an additional US$185m risk margin to cover potential business interruption claims in Australia following an unfavourable ruling in British courts. Outside this, it has concerns over QBE operating through a very difficult period without a permanent CEO. It is also expecting the insurance giant to make huge cuts to its dividend this year. The QBE share price ended the week at $8.45.

More reading

• Top brokers name 3 ASX shares to sell today
• Leading brokers name 3 ASX shares to sell today
• Got money to invest? Here are 3 ASX shares to buy
• ASX 200 down 0.5%: JB Hi-Fi guidance impresses, Super Retail update, Ramsay surges
• Why Beach, Orocobre, Premier Investments, & QBE shares are dropping lower

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores 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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There are some exciting ASX tech shares available to Aussie investors.

Here are three that might be able to make decent returns:

Betashares Global Cybersecurity ETF (ASX: HACK)

This exchange-traded fund (ETF) looks to give exposure to some of the world’s leading cybersecurity businesses.

Betashares says that cybersecurity is fast-growing sector, with cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future.

The fund’s portfolio includes global cybersecurity giants, as well as emerging players, from a range of global locations.

In terms of the country allocation, the US gets the vast bulk of the weighting with an 88.5% allocation of the ASX tech share’s portfolio. The UK, Israel, Japan and France are the only other countries with a weighting of more than 1%.

The biggest positions in the Betashares Global Cybersecurity ETF include: Crowdstrike, Zscaler, Cisco Systems, Accenture, Splunk, Fireeye, Proofpoint, Sailpoint Technologies, F5 Networks and Palo Alto Networks.

Management costs are 0.67% per annum. The ETF’s returns after fees are as follows: 36.75% over the past year, 25.6% per annum over the last three years and 21.4% per annum since inception in August 2016.

Serko Ltd (ASX: SKO)

Serko is a business based in New Zealand that specialises in online travel booking and expense management for the business travel market. It’s a business that’s liked by fund manager by WAM Microcap Limited (ASX: WMI) and is one of the top holdings. 

The ASX tech share is benefiting from an increase in travel as well as the reopening of travel between Australia and New Zealand. Last year Serko raised NZ$67.5 at NZ$4.55 per share to strengthen its balance sheet.

It wasn’t too long ago that Serko released its FY21 half-year result where it said that operating revenue had dropped 66% to NZ$5.1 million. Half-year total travel bookings for the six months had declined 77%, but it has improved to being down 65% for October 2020.

Serko was projecting that travel volumes would be in the range of 40% to 70% of pre-COVID-19 levels by March 2021.

Pushpay Holdings Ltd (ASX: PPH)

The electronic giving ASX tech share is a payments facilitator for large and medium US churches.

Pushpay recently increased its operating profit guidance again.

It said that its processing volume over the month of December 2020 was slightly higher than the company’s internal forecast when guidance was last update. While December donation volumes are usually significantly higher than other months partially driven by tax year-end giving in the US, the level of the increase can vary from year to year.

Management said that the company’s processing volume achieved in December 2020 combined with continuing operating leverage improvements supports a guidance update.

Pushpay also said that it has allocated an initial investment of resources into developing and enhancing the customer proposition for the Catholic segment of the US faith sector. The company said investment into the Catholic segment represents a significant milestone as Pushpay continues to work on being the preferred provider of mission critical software to the US faith sector.

Previous guidance was US$54 million to US$58 million, it then upgraded that guidance for FY21 to a range of between US$56 million and US$60 million. However, it said that uncertainties and impacts surrounding COVID-19 and the broader US economic environment remain. Pushpay expects operating leverage to continue to accrue to the business over the remainder of the current financial year.

At the current Pushpay share price it is valued at 26x FY22’s estimated earnings.

More reading

• Got cash to invest? Here are 3 ASX shares to buy
• 3 extraordinary ASX shares to buy right now
• 3 compelling ASX growth shares to buy
• 2 very exciting small cap ASX shares to watch
• Got money to invest? Here are 3 ASX shares to buy

Tristan Harrison owns shares of WAM MICRO FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETA CYBER ETF UNITS, PUSHPAY FPO NZX, and Serko Ltd. The Motley Fool Australia has recommended PUSHPAY FPO NZX and Serko Ltd. 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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If you’re wanting to add a few blue chip shares to your portfolio, then you may want to check out the ones listed below.

Here’s why these ASX shares come highly rated:

Goodman Group (ASX: GMG)

Goodman Group is one of the world’s leading integrated commercial and industrial property companies. It owns, develops, and manages industrial real estate globally. This includes warehouses, large scale logistics facilities, and business and office parks across a total of 17 countries. 

At the last count, Goodman had $51.7 billion of total assets under management globally, 369 properties under management, and 1,600+ customers. Among the latter are the likes of Amazon, DHL, Showpo, and Walmart.

Goodman focuses on investing in and developing high quality industrial properties in strategic locations, close to large urban populations and in and around major gateway cities globally, where demand is strong and transformational changes are driving significant opportunities. This strategy has worked incredibly well and led to Goodman delivering consistently strong growth in earnings and distributions.

One broker that is confident this positive form will continue is Morgan Stanley. It was pleased with its first quarter update and believes the company’s focus on strong locations is paying off. The broker has an overweight rating and $20.90 price target on its shares.

ResMed Inc. (ASX: RMD)

ResMed is a medical device company aiming to change lives by developing, manufacturing and distributing innovative medical devices and cloud-based software solutions that better diagnose, treat, and manage sleep-disordered breathing, chronic obstructive pulmonary disease (COPD), and other key chronic diseases.

Demand has been strong for its innovative products in recent years, leading to stellar sales and earnings growth. This certainly was the case in FY 2020 when it delivered a 15% increase in revenue to US$2,957 million and a 32% jump in net income to US$692.8 million.

The good news is that ResMed has started FY 2021 strongly and appears well-placed to continue this positive form in the future. This is thanks to its world-class products, the massive number of undiagnosed sleep apnoea sufferers globally, and its rapidly growing digital health ecosystem.

In respect to the latter, the company’s digital health ecosystem reached over 12 million cloud connectable medical devices in 2020. This provides ResMed with strong recurring revenues and a material amount of high quality data.

Credit Suisse is positive on the company and has an outperform rating and $31.00 price target on its shares. Though, it is worth noting that the company’s second quarter update will be released on Friday. So investors may want to consider waiting for that before jumping in.

More reading

• 2 fantastic ASX growth shares to buy this month
• The latest ASX broker “buy” ideas that got a valuation upgrade
• 2 outstanding blue chip ASX shares to buy right now
• 2 growing blue chip ASX shares to buy today
• 3 blue chip ASX growth shares to buy

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. 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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The ASX reporting season always throws up potential tactical buying opportunities for nimble investors, and this time is no different!

The fact that COVID-19 has triggered a string of unprecedented events may only add to the opportunity.

As it stands, the market is yet to fully appreciate the earnings and dividend upside from ASX stocks that are leveraged to the economic recovery, according to Morgans.

Another better than expected reporting season ahead?

“Domestic cyclicals outperforming overly fearful market expectations was a dominant theme in August,” said Morgans.

“And analyst previews of the 184 stocks under Morgans coverage suggest this trend will continue in February.

“Our analysts expect that 28% of stocks covered have reason to respond positively to February results.”

No easy pickings

But investors will need to be careful. They will have to jump through multiple hoops at the same time to find the best ASX stocks to buy.

This is due to the uncertainties created by the pandemic. Morgans is warning investors to thread carefully if they want to beat the S&P/ASX 200 Index (Index:^AXJO).

“While the recent good form in the economy will benefit segments of the market (retailers, banks, resources), elevated valuations and currency headwinds will temper the performance of others,” added the broker.

ASX stocks to buy for the reporting season

Morgans best tactical calls for the February reporting season included 18 ASX stocks. Below are four that stood out, in my view.

The first is the BHP Group Ltd (ASX: BHP) share price. Iron ore miners have been on a tear due as the commodity defied gravity and sceptics to hit new multi-year highs.

But Morgans picked the BHP share price as one to watch as the miner is likely to unveil a pleasing dividend and possible share buyback.

Another to make the list is the Breville Group Ltd (ASX: BRG) share price. The broker is tipping a strong first half result, which could make FY21 guidance look increasingly conservative.

Other ASX stocks that can rally on their profit results

The Ramelius Resources Limited (ASX: RMS) is another to watch, especially after its recent underperformance.

Even though the gold price has pulled back, the miner is still expected to post a strong earnings before interest, tax, depreciation and amortisation (EBITDA). This will remind investors about its robust cash flows and attractive valuation, added Morgans.

Meanwhile, the Sonic Healthcare Limited (ASX: SHL) share price could also rally on its results. Morgans is predicting a better than expected result for the medical testing group due to the surge in COVID testing across all its key markets.

This is more than enough to offset weakness in its base business as demand for other medical tests fall to the wayside.

More reading

• RBA might end QE in 2021! Will the ASX bubble burst?
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• 3 reasons the BHP (ASX:BHP) share price could be in the buy zone
• These ASX shares are falling after being hit by broker downgrades today

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia has recommended Sonic Healthcare 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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2020 was a strange year in a number of ways. But among the more strange things last year brought ASX investors, none was perhaps more unprecedented than the quantitative easing (QE) program the Reserve Bank of Australia (RBA) initiated for the first time in our country’s history.

Around the world, QE is not a new thing. The United States has been doing it in varying stages since the global financial crisis. Japan’s central bank has been doing QE-like measures for even longer.

But here, we Aussies seemed to be exempt. Or we were, at least. Last November, the RBA announced that our exemption had expired and that the central bank would be buying $100 billion worth of Australian government bonds.

The whole idea behind QE is that it increases liquidity and lowers borrowing costs (interest rates) across the whole economy. That, in theory, leads to higher economic growth. But, as its critics also point out, it also leads to a form of currency creation. That’s why its detractors often label QE as ‘money printing’.

But I’d wager ASX investors haven’t minded QE quite as much. See, QE is normally associated with higher share markets as a result of the increased liquidity in the financial system. Indeed, the S&P/ASX 200 Index (ASX: XJO) is up more than 14% since the RBA began its program at the start of November.

Could quantitative easing be coming to an end?

But according to reporting in the Australian Financial Review (AFR) this week, the party could have an end in sight. According to the report, forecaster Capital Economics is predicting that the RBA will be wrapping up its QE program in April of this year. That’s due to its predictions that, “employment will return to pre-virus levels in the first quarter of 2021, and the unemployment rate will decline to about 6 per cent by the end of 2021, and to about 5.5 per cent by the end of 2022”.

It is also predicting that, across the ditch, the Reserve Bank of New Zealand (RBNZ) will lead the world in actually raising interest rates this year. That is a result of the prediction that the New Zealand unemployment rate will decline to “around 5% by the end of 2021”. 

Another factor in these decisions across both economies is rising house prices. The report states that:

One reason to be optimistic about the outlook is that housing markets in both countries are roaring back to life. House prices in New Zealand are rising by around 20 per cent year-on-year and those in Australia may soon be rising at a double-digit pace, too.

What does no QE mean for ASX shares?

So if the RBA does indeed roll back its QE programs, what would it mean for the ASX 200 and ASX shares? Well, it may indeed result in the market coming off the boil.

But since Australian QE has had a relatively short lifespan, we might not see the same kind of ‘taper tantrum’ that the US markets saw back in 2018 when the US Federal Reserve started rolling back its own QE programs (since reversed, of course). And who knows, maybe if house prices continue to rise and unemployment indeed drops significantly in 2021, it might offset investors ‘dismay’ at QE coming to an end.

However, it is worth keeping in mind that, judging the experiences that other countries have faced, QE seems to be a lot easier to bring in than take away. I’ll personally believe the end of QE is here when I see it.

More reading

• Morgans picks February’s reporting season ASX heroes to buy now
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• These ASX shares are falling after being hit by broker downgrades today
• The latest ASX broker “buy” ideas that got a valuation upgrade

Motley Fool contributor Sebastian Bowen 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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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 four small cap ASX shares could be ones to watch this year:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a provider of enterprise mobility software. Its software allows sales and service organisations to increase their sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity. It has a large number of blue chips using its platform. This includes ANZ Bank (ASX: ANZ), Cardinal Health, Nike, and Red Bull. Demand from these companies underpinned solid recurring revenue growth in FY 2020 and the current financial year.

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. Demand has been growing strongly in recent years and has continued in FY 2021. For example, in the first quarter, Damstra revealed record first quarter revenue, cash receipts, and operating cash flow. 

MyDeal.com.au Limited (ASX: MYD)

MyDeal.com.au is an online retail marketplace that has been a positive performer in FY 2021. It recently released its second quarter update and revealed a 165% increase in gross sales to $70.1 million. This led to MyDeal’s first half gross sales increasing 217% over the same period last year to $126.7 million. This was driven by a strong increase in active customers to a record 813,764 and repeat use. Looking ahead, the company intends to use the $40 million raised from its IPO to drive future growth. This includes growing its private label business and investing in advertising to grow its customer base and brand.

Pointerra Ltd (ASX: 3DP)

Pointerra is a technology company that provides a powerful cloud-based solution for managing, visualising, working in, analysing, using, and sharing massive 3D point clouds and datasets. Its platform is able to extract vital information from the data that would otherwise take many hours to do. Management estimates that its market opportunity is currently worth an enormous $500 billion annually.

More reading

• Why Afterpay, Ansell, MyDeal, & PolyNovo shares are storming higher today
• Here’s why the MyDeal (ASX:MYD) share price surged 7% higher today
• The Bigtincan (ASX:BTH) share price has dropped 35% in 3 months
• 2 buy-rated small cap ASX shares for your watchlist
• Why the Bigtincan (ASX:BTH) share price is edging higher today

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 BIGTINCAN FPO 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 BIGTINCAN FPO, 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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