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If you’re interested in adding a little exposure to the small side of the market to your portfolio, then you might want to take a look at the shares listed below.

Here’s what you need to know about these rapidly growing ASX small cap shares:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a leading provider of enterprise mobility software globally. Its software helps businesses increase their sales win rates, reduce expenditures, and improve customer satisfaction. This is achieved by pulling everything from sales content management, coaching and training, document automation, and internal communications into one intuitive, custom-tailored, sales enablement platform.

Demand has been very strong for its platform and continues to be the case today. Management recently reaffirmed that it expects annualised recurring revenue (ARR) in the range of $49 million to $53 million in FY 2021. This represents a 37% to 48% increase year on year. This is still only scratching at the surface of its $6 billion market opportunity.

Analysts at Canaccord Genuity are very positive on its outlook. They have put a buy rating and $1.40 price target on its shares. The Bigtincan share price was changing hands for $1.19 at Friday’s close.

MyDeal.com.au Limited (ASX: MYD)

MyDeal.com.au is an online retail marketplace provider that recently landed on the Australian share market following its initial public offering (IPO). It has a focus on furniture, homewares, appliances, technology, baby products, and hardware.

As with many online retailers, MyDeal has been a strong performer this year. During the first quarter of FY 2021, the company delivered gross sales growth of 317% to $56.67 million. This was driven by the accelerating shift to online shopping and a 268% increase in active customers to 669,897 compared to the prior corresponding period.

Analysts at RBC Capital Markets are positive on the company’s prospects. They initiated coverage on MyDeal with a buy rating and $1.60 price target. The broker thinks the company is at an inflection point as annualised gross transaction value exceeds $200 million and customer numbers approach 700,000.

More reading

• Why the Bigtincan (ASX:BTH) share price charged 4% higher today
• MyDeal (ASX:MYD) share price jumps 7% but tipped to go even higher
• 3 small cap ASX tech shares growing at a rapid rate
• 2 ASX small cap shares tipped for big things
• 2 ASX growth shares to buy in November

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. The Motley Fool Australia has recommended BIGTINCAN FPO. 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.

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On Friday the S&P/ASX 200 Index (ASX: XJO) once again finished a very positive week in a subdued manner. The benchmark index dropped 0.5% to 6,601.1 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 futures pointing higher.

The Australian share market looks set to start the week on a very positive note. According to the latest SPI futures, the ASX 200 is expected to rise 39 points or 0.6% at the open. This follows a solid end to the week on Wall Street on Friday, which saw the Dow Jones rise 0.1%, the S&P 500 climb 0.25%, and the Nasdaq jump 0.9%. The S&P 500 closed at a new record high.

Oil prices mixed.

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch today after a mixed finish to the week for oil prices. According to Bloomberg, the WTI crude oil price dropped 0.4% to US$45.53 a barrel and the Brent crude oil price climbed 0.4% to US$48.18 a barrel. Despite this mixed finish, oil prices recorded their fourth successive weekly gain.

Gold price sinks lower.

Gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could start the week in the red after the gold price tumbled lower on Friday night. According to CNBC, the spot gold price sank 1.3% to US$1,788.1 an ounce. This was driven by optimism over the global economic recovery.

Treasury Wine to return.

The Treasury Wine Estates Ltd (ASX: TWE) share price crashed 11% lower on Friday before being placed in a trading halt. The wine company’s shares are likely to emerge from their halt this morning with a response to the Chinese Ministry of Commerce announcing tariffs on all Australian wine imports. This follows a review of the preliminary findings of an anti-dumping investigation into Australia’s wine exports. Tariffs will range from between 107% to more than 200%. In FY 2020 the company generated almost half of its earnings from the Asia market.

Zip Co annual general meeting.

The Zip Co Ltd (ASX: Z1P) share price will be one to watch today when it holds its annual general meeting. Although the buy now pay later provider has only recently released a trading update, it could still provide investors with a snapshot of how it is performing in November. A further update on its international expansion plans and progress could also be on the cards.

More reading

• 5 things to watch on the ASX 200 next week
• Are gold and bitcoin both ‘safe havens’?
• These ASX dividend shares offer yields of at least 4%
• These were the worst performing ASX 200 shares last week
• These were the best performing ASX 200 shares last week

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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. 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.

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Heightened geopolitical risks across Europe and the coronavirus pandemic mean that there continues to be a threat of a second stock market crash. As such, many companies trade on low valuations that suggest investors have priced in a period of difficulty.

This could mean there are buying opportunities for investors who can look beyond short-term risks and instead focus on long-term growth potential.

Buying cheap shares and holding them for the long run has allowed investors to benefit from improving economic conditions in the past. A similar outcome could take place over the coming years.

The threat of a second stock market crash

Predicting when a stock market crash will occur is always an extremely difficult task. As this year’s market downturn showed, bear markets can come into existence with little or no prior warning. Therefore, anticipating them ahead of their occurrence is not an exact science.

However, today’s elevated risks mean that there may be a higher chance of a decline in stock prices over the coming months. Political risks in Europe remain at high levels, while the coronavirus pandemic could continue to disrupt the economic outlook over the coming months. This may lead to more difficult trading conditions for a wide range of businesses that causes investor sentiment to deteriorate.

Buying cheap shares today

The threat of a second stock market crash means that investors are demanding wider margins of safety from shares at the present time. As such, some companies are trading at prices that are significantly below their historic averages. This means that there may be buying opportunities available for long-term investors who can accept the prospect of short-term paper losses in return for gains in the coming years.

Furthermore, there is no guarantee that a market fall will occur in the near term. Certainly, the stock market is very unlikely to make uninterrupted gains in the long run. However, it could surge to new record highs on the back of fiscal and monetary policy stimulus. This could mean that today’s low valuations are extremely attractive, since they may be pricing in a market decline that does not occur for many years.

Long-term gains

Buying undervalued shares when the threat of a stock market crash is relatively high has been a profitable strategy for many years. It has enabled investors to use the market’s cycle to their advantage.

Of course, value investing may not be popular at the present time. Many investors are more focused on growth prospects for businesses across a variety of sectors. However, over time, the appeal of bargain shares is likely to be recognised by investors as the economic outlook improves. This may mean that today’s undervalued shares deliver market-beating returns that has a positive impact on your portfolio’s performance.

More reading

• Why these All Ords shares have been smashed this month
• Why these All Ords shares have almost doubled in value this month
• 2 exciting small cap ASX shares to buy
• These ASX tech shares have been tipped for big things
• Forget Bitcoin and gold’s rising prices! I’d invest money in crashing shares to retire rich

Motley Fool contributor Peter Stephens 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.

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Although the All Ordinaries index is racing materially higher this month, not all shares have been able to follow its lead.

Here’s why these ASX shares are taking a tumble in November:

Kogan.com Ltd (ASX: KGN)

The Kogan share price has tumbled a disappointing 21% lower since the start of the month. This ecommerce company’s shares have been caught up in a seismic rotation by investors out of COVID winners and into value shares. In addition to this, a broker note by UBS earlier this month hasn’t helped investor sentiment. While UBS has retained its neutral rating on its shares, it has reduced its price target from $22.00 to $18.00. The broker has concerns that recent gross margin strength is unsustainable.  

McPherson’s Ltd (ASX: MCP)

The McPherson’s share price has lost 16% of its value in November. This decline appears to have been triggered by a recent first quarter update by the health, wellness and beauty products company. Although it recorded a 4% increase in sales to $49.7 million, its profits were wiped out by a hefty $5.7 million non-recurring provision. This was driven by the write down of its hand sanitiser inventory. Management advised that demand for it has dissipated and the supply base for these products has become much more competitive. As a result, the company has been left holding excess quantities of hand sanitiser inventory.

Silver Lake Resources Limited (ASX: SLR)

The Silver Lake Resources share price has been a poor performer and is down 16% since the start of the month. Investors have been selling Silver Lake and other gold miners after positive COVID-19 vaccine developments weighed heavily on the gold price and other safe haven assets. This has led to the S&P/ASX All Ordinaries Gold index (a gold miner index) losing over 8% of its value this month.

More reading

• The NAB (ASX:NAB) share price is up 25% in November
• 4 great ASX growth shares to buy
• ASX 200 falls on Thursday
• 2 leading ASX growth shares to buy that are falling
• The 13 ASX shares that could have doubled your money in 2020

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 Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com 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.

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The All Ordinaries index may be racing higher this month, but its 11% gain pales in comparison to some of the gains being made in November.

Three All Ords shares that have been on fire this month are listed below. Here’s why they are rocketing higher:

Japara Healthcare Ltd (ASX: JHC)

The Japara Healthcare share price has surged 102% higher since the start of the month. Investors have been buying the aged care provider’s shares in November despite there being no news out of the company. The catalyst for this gain appears to have been due to its rival, Regis Healthcare Ltd (ASX: REG), receiving a takeover offer from investment house Washington H. Soul Pattinson & Co Ltd (ASX: SOL). This led to sector wide upgrades being made by analysts at JP Morgan.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix share price has been a very strong performer and is up an impressive 93% this month. Investors have been buying the nuclear medicine company’s shares for a couple of reasons. One is the announcement of a strategic commercial partnership with China Grand Pharmaceutical and Healthcare Holdings. This agreement is for its portfolio of Molecularly-Targeted Radiation products. It includes a US$25 million up-front non-refundable prepayment to Telix and up to US$225 million in milestone payments. In addition to this, news that the US FDA has approved its new drug application for a prostate cancer imaging product went down well with the market.

Unibail-Rodamco-Westfield CDI (ASX: URW)

The Unibail Rodamco Westfield share price has jumped 75% since the start of the month. Investors have been fighting to get hold of the shopping centre operator’s shares thanks to positive COVID-19 vaccine developments. A highly effective vaccine could give its struggling Westfield centres around the world a huge lift in 2021.

More reading

• Why the Unibail (ASX:URW) share price has fallen 3% today
• Why Brickworks, Mesoblast, Qantas, & Telix shares are storming higher
• Why the Telix (ASX:TLX) share price is surging 8%
• ASX 200 Weekly Wrap: ASX continues to climb, despite outage
• These were the best performing ASX 200 shares last week

Motley Fool contributor James Mickleboro owns shares of TELIXPHARM DEF SET. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. 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.

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If you’re interested in adding a small cap or two to your balanced portfolio, then you might want to check out the ones listed below.

Here’s what you need to know about these small cap ASX shares:

Audinate Group Limited (ASX: AD8)

Audinate is a digital audio-visual networking technologies provider best known for its industry-leading Dante audio over IP networking solution. This product is used widely across a number of industries and has begun to dominate its market.

For example, management recently revealed that the number of Dante enabled products manufactured by its customers has grown to 2,804. This is a staggering eight times greater than its nearest rival, Cobranet.

This, and its better than expected first quarter update, appears to have impressed analysts at UBS. Last month the broker retained its buy rating and lifted its price target on the company’s shares to $8.00.

Mach7 Technologies Ltd (ASX: M7T)

Mach7 is a growing developer of enterprise imaging and informatics solutions for image viewing, storage, and workflow management. Its increasingly popular solutions can be implemented individually or as a comprehensive end-to-end image management and diagnostic viewing platform.

A testament to the quality of its offering is its client base. For example, Mach7 recently announced a seven-year contract with Trinity Health for the license and associated support services for its eUnity enterprise viewer. Trinity Health is the fifth largest healthcare Integrated Delivery Network (IDN) in the United States and will be installing it across multiple facilities within its 92 hospitals.

One broker that is positive on the company’s prospects is Morgans. It has recently reiterated its add rating and $1.49 price target on the company’s shares. Morgans notes that this contract could be the first of many deals due to its material tender pipeline.

More reading

• Fundie names 5 ASX shares with good growth prospects
• 2 ASX small cap shares tipped for big things
• Are these 2 COVID-hit ASX shares worth buying?
• Why the Mach7 (ASX:M7T) share price is zooming 9% higher today
• This under-the-radar ASX tech company’s shares are up 150% since March

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 MACH7 FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AUDINATEGL FPO. The Motley Fool Australia has recommended AUDINATEGL FPO and MACH7 FPO. 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.

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The Australian tech sector is home to a large number of companies with the potential to grow strongly over the 2020s.

Two that have been delivering on expectations in recent times are listed below. Here’s why they have been tipped to continue this strong form in the future:

Damstra Holdings Ltd (ASX: DTC)

Damstra is a growing integrated workplace management solutions provider. Its popular cloud-based workplace management platform is used by businesses globally to track, manage, and protect their workers and assets. In FY 2020, Damstra was on form and delivered a 47% increase in revenue to $23.5 million. This was underpinned by strong demand from existing customers and a jump in new customers.

This positive form has continued in FY 2021. During the first quarter, the company reported record revenue, cash receipts, and operating cash flow. In light of this, management has reaffirmed its guidance for the full year and is forecasting revenue of $33 million to $35 million. This represents year on year growth of 60% to 70% and includes the benefits of the Vault acquisition.

This performance has impressed analysts at Morgan Stanley. They have put an overweight and $2.00 price target on the company’s shares. This compares to the current Damstra share price of $1.65.

ELMO Software Ltd (ASX: ELO)

ELMO is a cloud-based human resources and payroll software company that provides businesses with the ability to streamline a wide range of processes through a single unified platform.

As with Damstra, ELMO has been growing at a strong rate in 2020 despite the pandemic. In FY 2020 it reported a 19.7% increase in annualised recurring revenue (ARR) to $55.1 million. Pleasingly, the current financial year looks set to be equally positive, with management expecting to grow its ARR to between $72.5 million and $78.5 million. This will be an increase of up to 42% year on year.

Morgan Stanley was pleased with this guidance and recently reaffirmed its overweight rating and lifted the price target on ELMO’s shares to $9.30. This compares to the current ELMO share price of $6.34.

More reading

• 3 small cap ASX tech shares growing at a rapid rate
• 2 exciting ASX tech shares to buy right now
• 2 highly-rated ASX mid cap shares to buy
• Why Althea, BWX, Damstra, & GrainCorp shares are charging higher
• Damstra (ASX:DTC) share price storms higher on AGM update

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 Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Damstra Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Damstra Holdings Ltd. The Motley Fool Australia has recommended Elmo Software. 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.

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Many investors may naturally avoid crashing shares when deciding where to invest their retirement portfolios. Their uncertain near-term outlooks and unpopularity among other investors may mean that assets such as Bitcoin and gold have more appeal following their recent price rises.

However, ignoring other investors and focusing on high-quality businesses that trade at low prices could be a sound retirement strategy. It may enable you to benefit from the stock market’s likely recovery in the coming years. This may boost the size of your retirement nest egg and help you to retire early.

Investing money in crashing shares

Risks to the economy’s performance may mean that crashing shares remain a feature of the stock market over the coming months. Investor sentiment towards businesses that are struggling to deliver sales growth or rising profitability may deteriorate. Furthermore, risks such as Brexit and coronavirus may cause greater caution towards the wider stock market.

However, buying stocks that have fallen in price could be a sound long-term move. In many cases, their valuations have diverged from their intrinsic values. This means that their current prices may not reflect their earnings growth capacity as the economic outlook improves. The end result could be rising valuations over the long run as the economic outlook improves.

As such, ignoring other investors and buying companies with recovery potential while they trade at cheap prices could be a means of growing your retirement portfolio. Going against the views of your peers may not be an easy task. But it could be a profitable strategy in the long run.

Identifying the best shares to buy

Of course, not all crashing shares will recover. The current economic crisis could be prolonged, and it may put the financial positions of many businesses under pressure. As such, it is imperative to buy the best shares that you can find. They may have a greater chance of surviving short-term difficulties to benefit from an economic recovery.

For example, companies with access to large amounts of liquidity may be better able to survive a period of weak sales. Similarly, companies with a unique product or a lower cost base than their peers may produce a more resilient financial performance that translates into a higher share price.

Unlike gold and Bitcoin, it is possible to accurately value crashing shares. For example, investors can use earnings, income or asset-based metrics to determine whether they trade at a discount to their intrinsic value. By contrast, Bitcoin and gold are dependent on investor sentiment and the outlook for the world economy. Due to their unpredictability and the cheap prices available within the stock market, a portfolio of undervalued shares may have a more positive impact on your plans to retire early.

More reading

• Top brokers name 3 ASX shares to sell next week
• The NAB (ASX:NAB) share price is up 25% in November
• 3 ASX dividend shares rated as buys
• Are ASX tech shares like Afterpay (ASX:APT) in a bubble?
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Peter Stephens 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.

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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:

Ampol Ltd (ASX: ALD)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $23.30 price target on this fuel retailer’s shares. According to the note, the broker was surprised to see Ampol, formerly known as Caltex, announce a $300 million share buyback. Given the tough operating environment and its Lynton refinery closure, Goldman was expecting the company to delay any capital returns. While this is a positive for shareholders, it feels its shares are overvalued at the current level. Particularly given the growing capital intensity of the business, which it sees as a risk to capital return expectations in the future. The Ampol share price ended the week at $30.63.

Mesoblast limited (ASX: MSB)

According to a note out of Canaccord Genuity, its analysts have retained their sell rating but increased the price target on this biotechnology company’s shares slightly to $1.68. This follows the announcement of a deal with global pharma giant Novartis which could be worth upwards of US$1.25 billion to Mesoblast in milestone payments. The broker appears to believe the company’s shares are materially overvalued at the current level. The Mesoblast share price was fetching $4.07 at Friday’s close.

Xero Limited (ASX: XRO)

Analysts at UBS have retained their sell rating and lowly $77.00 price target on this cloud-based business and accounting software platform provider’s shares. According to the note, the broker was surprised with Xero’s announcement of a US$700 million convertible notes offering last week. It believes this could be a sign that management is readying a major acquisition. Although this has the potential to be a positive, it continues to see its shares as expensive. The Xero share price ended the week at $133.76.

More reading

• These were the best performing ASX 200 shares last week
• The Aussie dollar is near a 2-year high. Here’s what it means for ASX shares
• ASX 200 falls on Thursday
• Top brokers name 3 ASX shares to sell today
• The 13 ASX shares that could have doubled your money in 2020

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 Xero. 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.

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It certainly has been a fantastic month for the National Australia Bank Ltd (ASX: NAB) share price.

Since the start of November, the banking giant’s shares have rallied an impressive 25% higher.

This means the NAB share price is now trading a whopping 76% higher than its COVID-low of $13.20.

Why is the NAB share price racing higher in November?

There have been a number of catalysts for NAB’s strong share price gains in November.

The first is of course the positive developments that are being made with COVID-19 vaccines. This month no less than three vaccine candidates have been shown to be highly effective against the virus.

This has sparked hopes that the pandemic could be over sooner than expected, reducing the risk of an economic disaster.

It also has the potential to give the housing market a lift in 2021, which would be great news for the banks and could underpin demand for mortgages.

Another catalyst has been the shift away from high-flying COVID winners like Kogan.com Ltd (ASX: KGN) and NEXTDC Ltd (ASX: NXT) by investors.

A significant amount of funds has shifted away from this side of the market this month and into beaten down areas like the banks.

And finally, the prospect of bigger dividend payments has given the banking sector a lift.

Earlier this year at the height of the pandemic, APRA told the banks to keep their payout ratios below 50% of earnings. This was designed to ensure their balance sheets remained robust during these challenging times.

However, with the worst seemingly over and their provisions appearing to be more than sufficient, APRA is considering the relaxing of its dividend cap.

This would be great news for income investors in this low interest rate environment.

Is it too late to buy NAB shares?

One broker that still sees some upside for NAB’s shares is Ord Minnett. It currently has an accumulate rating and $24.20 price target on its shares.

The broker is also forecasting a dividend of $1.00 per share in FY 2021 and then $1.10 per share in FY 2022. This represents fully franked yields of 4.2% and 4.6%, respectively, based on the current NAB share price.

More reading

• 10 fantastic ASX shares to buy in December
• 4 great ASX growth shares to buy
• What happened to the NextDC (ASX:NXT) share price in November?
• The Telstra (ASX:TLS) dividend yield is 8 times greater than term deposits
• 2 ASX shares delivering explosive growth in FY 2021

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of and has recommended Kogan.com 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.

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