Do you like investing in ASX small cap shares? As much as I like researching ASX dividend shares like Coles Group (ASX: COL) or Wesfarmers Ltd (ASX: WES), I love the Wild West of the ASX — small-cap growth shares.
Sure, it can be a minefield at times. There are lots of promotional CEOs, dodgy operators, stock-spruiking fund managers and social media trolls.
However, if you know what you are doing, have the temperament and humility for investing in good businesses, plus a stock-picking filter to keep your wits about you, the risk-reward trade-off is favourable for advanced investors operating in ASX small caps. By that I mean, anything below $300 million in market capitalisation.
9 research tips for Australian small-cap share investors
In the latest episode of The Australian Investors Podcast, I sat down with Mark Tobin, former small company analyst founder of Coffee MicroCaps; and Andrew Page, small-cap investor and Founder of Strawman.com, for a detailed chat about how we go about researching smaller companies.
If you like this episode of The Australian Investors Podcast, I’d love it if you subscribed on iTunes, Spotify, Castbox, YouTube or wherever you get your podcasts.
But… if you love it, please help me out by leaving me a review on iTunes or Apple Podcasts. It’s a huge help for me to secure good guests like Mark and Andrew — and get you better insights each week.
In the podcast conversation, Mark, Andrew and I provide an update on what we’ve been working on.
Then, each investor shares 3 of his key factors to look for when searching through ASX small-cap shares, especially when unearthing hidden gem micro caps and small caps.
With three each, that means you’ll get 9 investing tips and tools to add to your investment process (if you aren’t already using them). With examples of companies to match!
Small-cap ASX shares mentioned
The ASX shares discussed in this podcast include:
- Energy One (ASX: EOL)
- Pointerra (ASX: 3DP)
- Xero (ASX: XRO)
- Alcidion (ASX: ALC)
- Skyfii Ltd (ASX: SKF)
- eRoad (ASX: ERD)
- Catapult (ASX: CAT)
- Pro Medicus (ASX: PME)
- Konect
Please note, these companies are examples only. As we explain in the podcast, a lot goes into researching smaller companies on the ASX. Also note that we recorded this interview on Thursday April 1st, 2021. Things change quickly in small-cap land.
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