3 exciting small cap ASX shares for your watchlist

Audinate Group Limited (ASX:AD8) and these small cap ASX shares could be deserving of a spot on your watchlist. Here’s why…
The post 3 exciting small cap ASX shares for your watchlist appeared first on The Motley Fool Australia. –

3 asx shares represented by investor holding up 3 fingers

The small end of the Australian share market is home to a number of companies with the potential to grow materially in the future.

Three that investors might want to get better acquainted with are listed below. Here’s why they should be on your watchlist:

Audinate Group Limited (ASX: AD8)

Audinate is a leading digital audio-visual networking technologies provider. The key product in its arsenal is its popular Dante audio over IP networking solution. This solution is used across a number of industries and is the clear industry leader. For example, the number of Dante enabled products manufactured by its customers is eight times greater than its nearest rival. This puts the company in a great position to benefit from increasing demand once the pandemic passes. In fact, this demand is already showing, with Audinate reporting its highest ever quarterly revenue last week.

Serko Ltd (ASX: SKO)

Serko is an online travel booking and expense management provider. Its two key products are the Zeno Travel and Zeno Expense platforms. Serko’s Zeno Travel provides AI-powered end-to-end travel itineraries, cost control and travel policy compliance to corporate customers. Whereas Zeno Expense allows businesses to automate and streamline their expense administration function, identify out-of-policy expense claims, and prevent fraud. Given its exposure to travel markets, it will come as no surprise to learn that demand has fallen heavily during the pandemic. However, with travel markets beginning to recover, Serko has also reported improvements in its performance. Another positive is that a significant deal with travel giant could be a game-changer once trading conditions return to normal.

Universal Store Holdings Limited (ASX: UNI)

Universal Store is a fashion retailer aiming to deliver a frequently changing and carefully curated selection of on-trend products to the fashion focused customer. Unlike the others, it has been a particularly positive performer during the pandemic. For example, during the first half of FY 2021, Universal Store reported a 23.3% increase in sales to $118 million and a 63.6% increase in underlying net profit after tax to $21.1 million. Positively, it is expecting a strong second half and bumper full year profit result. Looking further ahead, the company has opportunities to expand its footprint meaningfully over the next decade to drive further growth. As things stand, management has identified up to 60 new store sites. This compares to the 65 stores it was operating from during the first half.

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.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

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 AUDINATEGL FPO. The Motley Fool Australia has recommended Serko Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 3 exciting small cap ASX shares for your watchlist appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!