A $1 million portfolio might seem like a far-off dream unless you start by investing an already large sum of money. Though, picking ASX shares with the potential for returns greater than 2,000% over the long term makes this dream much more achievable.

I know… a 20-bagger can sound outlandish — but, rest assured, it is entirely possible. In fact, 14 ASX-listed companies have seen their share prices skyrocket more than 2,000% between 2015 and now. You might recognise some of the ASX shares that fall into this bucket — including Hub24 Limited (ASX: HUB), Pilbara Minerals Ltd (ASX: PLS), and Pro Medicus Ltd (ASX: PME).

But, to tap into opportunities now to build a $1 million portfolio, I think it's essential to look at the small dogs on the block.

Searching small to make it big with ASX shares

The law of large numbers implies that it can become difficult for big companies to grow at high rates.

Put simply, it is harder to go from $1,000,000 to $2,000,000 than it is to go from $1,000 to $2,000. But in percentage terms, they are the same — both being a 100% increase. Based on this, the greatest growth is plausibly found among the small caps of the market.

Research conducted by Dede Eyesan and Jenga Investment Partners further supports this. In the book titled Global Outperformers, Eyesan looked at companies that returned more than 1,000% during the 10 years between 2012 and 2022.

As shown in the extract above, 97% of global outperformers during the reviewed decade started out as small caps — or even smaller. That is some strong evidence to support the smaller end of the market as the best place to go hunting for a chance at a $1 million portfolio.

Where I'd shoot for a million

There are two ASX shares that I believe tick the boxes needed for massive upside.

Both companies operate in large addressable markets and are in the midst of structural tailwinds. Furthermore, both have delivered exceptional revenue growth, increasing more than tenfold over the past five years.

The first company I'd consider is counter-drone equipment maker Droneshield Ltd (ASX: DRO). A $10 billion market opportunity — combined with a track record of growth, a foot in the door with the world's biggest defence spender, and a geopolitical environment conducive to greater protection measures — Droneshield has a lot to like.

It's still early days. Though, Droneshield's continued product development leads me to believe this company could take a considerable slice of a market that is becoming increasingly relevant.

Shares in the company are already up 88% over the last 12 months.

The other ASX share which I think could be primed for remarkable returns is Alcidion Group Ltd (ASX: ALC).

In my opinion, healthcare costs are reaching a breaking point globally. The cost of care is spiralling toward an amount that exceeds what the taxpayer can shoulder. At the same time, the rising cost of living could be forcing more people into the public system.

That's why I think digital patient management solutions — like those provided by Alcidion — are going to become critical to increasing productivity and controlling costs.

The company is not yet profitable. However, revenue has grown at a compound annual growth rate (CAGR) of 69% over the past four years. Given the scalability of its product, attractive profits could be simply a matter of time for this ASX share.

Shares in Alcidion are down 40% over the last 12 months.

The post ASX shares: Invest in these 2 stocks for a legit chance at $1 million appeared first on The Motley Fool Australia.

Three that haven't gone down particularly well with investors are summarised below. Here's why these ASX All Ordinaries shares are falling:

Alcidion Group Ltd (ASX: ALC)

The Alcidion share price is down 3% to 15.5 cents. This healthcare technology company's shares have come under pressure despite reporting strong sales figures during the second quarter. Alcidion reported new sales of $16.8 million, with $4.2 million to be recognised in FY 2023. This led to FY 2023 contracted revenue hitting $32.9 million, which is up 21% on the prior corresponding period. For the first half, Alcidion recorded cash receipts of $18.8 million, which is up 15% year over year.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is down over 7% to 64 cents. This follows the release of the technology company's fourth quarter and full year update. Unfortunately, EOS revealed that some sales opportunities that were previously expected to be signed and commence delivering revenue in the second half of 2022 have been delayed by customers. And while receipts from customers came to almost $41 million, the company still posted an operating cash outflow of $13.9 million for the quarter. This left EOS with a cash and equivalents balance of $21.75 million.

Whispir Ltd (ASX: WSP)

The Whispir share price is down 5% to 48.5 cents. Investors have been selling this communications management systems provider's shares after it reported a 9% year over year decline in cash receipts to $14.84 million during the second quarter. Though, it is worth noting that the prior corresponding period included COVID-19 vaccine rollout related revenues. Whispir ended the period with total cash and equivalents of $9.5 million, which it estimates to be 1.7 quarters of funding.

The post 3 ASX All Ordinaries shares getting hammered on quarterly updates appeared first on The Motley Fool Australia.

According to Oxford Languages, 'motley' means "incongruously varied in appearance or character". But in relation to our Foolish writers, it means they vary greatly with regard to age, risk tolerance, and stage of life as well as investing budget, timeframe, and expectations.

Despite their many differences, a passion for investing in ASX shares is something all our writers definitely have in common.

So when we asked them to let us know which of the ASX companies they own shares in that they are feeling particularly upbeat about right now, they leapt at the chance to share their thoughts.

Here's what they had to say:

8 of their own ASX shares our writers are especially pumped about (smallest to largest)

• Bailador Technology Investments Ltd (ASX: BTI), $185.59 million
• Alcidion Group Ltd (ASX: ALC), $199.72 million
• VanEck Morningstar Wide Moat ETF (ASX: MOAT), $454.32 million
• Vulcan Energy Resources Ltd (ASX: VUL), $1.01 billion
• Elders Ltd (ASX: ELD), $1.59 billion
• Telix Pharmaceuticals Ltd (ASX: TLX), $2.324 billion
• Domino's Pizza Enterprises Ltd (ASX: DMP), $5.70 billion
• Fortescue Metals Group Limited (ASX: FMG), $58.32 billion

(Market capitalisations as of market close on 25 November 2022)

Why these ASX shares set our writers' hearts aflutter

Bailador Technology Investments Ltd

What it does: Bailador exposes investors to a "portfolio of information technology companies with global addressable markets". It generally makes initial investments of between $5 million and $20 million in businesses in the 'expansion stage'. Some of the sectors that Bailador looks for are subscription-based internet businesses, online marketplaces, software, e-commerce, high-value data, online education, telco applications, and services. Siteminder Ltd (ASX: SDR) is currently one of its biggest investments.

By Tristan Harrison: The typical characteristics that Bailador looks for in a business to invest in are attractive to me. These include companies that are run by founders and have a "proven" business model with attractive unit economics, international revenue generation, "huge market opportunity", and the "ability to generate repeat revenue".

In the current climate of economic uncertainty, I think this sort of discerning approach could help this  ASX financial share excel over the long term. Yet, the Bailador share price is down 20% since the end of August.

Almost half the company's portfolio value is cash after Bailador recently sold its Instaclustr and SMI stakes for a combined $138 million. Due to those sales, $119 million of Bailador's total $246.8 million portfolio value is cash, providing protection and a hunting fund in these volatile times.

Motley Fool contributor Tristan Harrison owns shares in Bailador Technology Investments Ltd.

Alcidion Group Ltd

What it does: Alcidion is a healthcare informatics company that provides a range of software solutions to hospitals and healthcare professionals. Think everything from patient flow and bed management to real-time analytics, theatre management, waiting lists, and registrations.

Alcidion has an established foothold in Australia, New Zealand, and the United Kingdom, with its technology being used to manage more than 65,000 beds across 400 hospitals.

By Cathryn Goh: Although the digital transformation of business, in general, has been in train for some time, the healthcare sector has been somewhat of a laggard. Many hospitals are rooted in old-world systems. Others have embraced digital but use a variety of disparate systems that don't talk to each other.

This is where Alcidion enters the fray, offering hospitals everything from a fully-fledged electronic patient record (EPR) solution to individual software modules that play nice with existing technology investments.

Put simply, Alcidion is a mission-critical, scalable software business that's experiencing strong business momentum and has tipped into cash flow and earnings before interest, tax, depreciation and amortisation (EBITDA) positive territory.

With a newly-transformed offering and stiff industry tailwinds at its back, it's a small-cap ASX share I think holds plenty of promise.

Motley Fool contributor Cathryn Goh owns shares in Alcidion Group Ltd.

VanEck Morningstar Wide Moat ETF

What it does: This exchange-traded fund (ETF) holds a small portfolio of US shares that are deemed to show characteristics of Warren Buffett's famous 'economic moat'. In other words, intrinsic and durable competitive advantages.

By Sebastian Bowen: The VanEck Wide Moat ETF invests in a relatively small portfolio of quality US companies. The holdings are selected for their ability to demonstrate an economic moat. Types of moats can include an exceptionally strong brand, pricing power in a particular sector, or selling a product that many customers have no alternative for, to name a few.

This ETF has proven its approach works. The VanEck Wide Moat ETF has outperformed its benchmark S&P 500 Index (SP: .INX) over the past five years and since its inception in June 2015.

Since inception, the fund has averaged a return of 14.48% per annum (as of 31 October). This is more than enough to earn the VanEck Wide Moat ETF pride of place in my ASX share portfolio.

Motley Fool contributor Sebastian Bowen owns units in the VanEck Vectors Wide Moat ETF.

Vulcan Energy Resources Ltd

What it does: Vulcan Energy is an ASX lithium company working to develop its flagship Zero-Carbon Lithium Project, a German lithium brine resource. The project is expected to power its production using renewable energy from the brine's geothermal properties.

By Brooke Cooper: For me, my most exciting investment is one that also carries plenty of risk.

Vulcan Energy is working to develop a world-first zero-carbon lithium project. Thus, there's lots of scope for potentially-significant upside, but also the risk of error and misfortune along the way. Being in my 20s and having a long investment horizon, I'm okay with taking on this risk. 

Beyond the company itself, unprofitable resource shares are typically particularly susceptible to shifting market sentiment, as I've delved into previously. That's arguably one contributing factor to Vulcan's 34% year-to-date share price tumble.

However, I remain excited about the Zero-Carbon Lithium Project's potential, as well as the company's work in the geothermal power space.

Motley Fool contributor Brooke Cooper owns shares in Vulcan Energy Resources Ltd.

Elders Ltd

What it does: Since its founding in 1839, Elders has taken many forms over its 183-year lifespan. Today, the company derives most of its gross profits from its agricultural chemicals operations and agency services. Elders' agricultural industry involvement has also permeated into other areas such as fertilisers, animal health, and rural real estate.

By Mitchell Lawler: Upon releasing its FY22 full-year results last week, the market responded with a hefty sell-down of the agribusiness's shares. The Elders share price was demolished by nearly 23% in a single session despite sales revenue and underlying profit increasing by 35% and 42%, respectively.

News of the company's CEO, Mark Allison, retiring likely played a significant role in the shifting sentiment. Allison, without a doubt, was instrumental in conducting one of the greatest turnaround stories in Australia's corporate history.

While it will be a loss to the company, I believe Elders is strongly positioned to continue its growth. The company has made many acquisitions recently, bringing the trusted Elders brand to more locations and potential customers than ever before.

With a price-to-earnings (P/E) ratio of around 9.7, I believe this long-standing S&P/ASX 200 Index (ASX: XJO) share looks acutely underappreciated and undervalued.

Motley Fool contributor Mitchell Lawler owns shares in Elders Ltd.

Telix Pharmaceuticals Ltd

What it does: Telix is a pharmaceutical company that makes cancer diagnostic and treatment products.
The business is currently transitioning from a pre-revenue phase to a growth stage. In April, Telix commercially launched prostate cancer diagnostic tool Illuccix into the US market. The pharma also has other cancer products in the pipeline.

By Tony Yoo: Many experts are bullish on healthcare as Australia and the world head into an economic slowdown. The sector has defensive characteristics because consumers will still spend money on their health while cutting other costs.

I believe Telix combines this defensive streak with the potential for explosive growth as it develops new products for release into an aging population. The share price is down 10.3% year to date, still presenting an attractive entry point for those willing to hold long-term.

Motley Fool contributor Tony Yoo owns shares in Telix Pharmaceuticals Ltd.

Domino's Pizza Enterprises Ltd

What it does: Domino's Pizza Enterprises holds exclusive master franchise rights for the Domino's brand and network in Australia and several international markets such as New Zealand, France, and Japan.

By James Mickleboro: I recently took advantage of the significant weakness in the Domino's share price in 2022 to pick up some shares. I made the move on the belief that the pizza chain operator's shares are currently trading at a compelling level for a long-term investment.

While trading conditions are proving difficult for Domino's at present due largely to inflationary pressures, these headwinds will inevitably ease in time. In light of this, I think investors should look beyond this and focus on the long term, which remains very positive thanks to the company's store expansion plans.

Domino's aims to more than double its store footprint over the next decade. Combined with its same-store sales growth target of 3% to 6% per annum, I believe this bodes well for its growth.

Motley Fool contributor James Mickleboro owns shares in Domino's Pizza Enterprises Ltd.

Fortescue Metals Group Limited

What it does: Fortescue is the largest, pure-play iron ore miner on the ASX. It has multiple mining operations in the Pilbara region of Western Australia. It now has a subsidiary called Fortescue Future Industries (FFI), which is a green energy and technology business.

By Bronwyn Allen: I like investing in founder-led companies because I think there is inherently more passion and drive at the management level to keep the company growing and evolving.

Fortescue founder Andrew 'Twiggy' Forrest is one of Australia's pre-eminent business leaders and, I believe, an incredible innovator who gives the miner a significant edge.

Fortescue is one of the world's lowest-cost iron ore producers because Forrest has invested in infrastructure and technology, including robotics and artificial intelligence, like nobody else. I also think he's way ahead on what may be the biggest investment thematic of my generation – climate change.

Forrest spent much of COVID-19 travelling the world, establishing business and government partnerships to develop green hydrogen and other renewable energy technologies under the FFI banner. His goal is to transition Fortescue from an iron ore miner to a 'global green energy and resources company'.

I'm excited to see a leader in a 'dirty' industry like mining embracing climate change as an opportunity for business expansion, not a burden to core operations.

Motley Fool contributor Bronwyn Allen owns shares in Fortescue Metals Group Limited.

The post Skin in the game: The ASX share in my portfolio I'm most excited about appeared first on The Motley Fool Australia.

It's been a rough year for investors of small-cap ASX shares.

"All types of investing require nerve and courage. But perhaps none more so than small-cap stocks," said Ophir analysts in a memo to investors this month.

"When an economic downturn hits, small caps tend to fall first and farthest."

In volatile and uncertain times, the value of smaller companies sinks much more dramatically than larger companies for multiple reasons.

"Small caps also tend to be more sensitive to changes in the economy. They are less able to diversify their operations and are less likely to have the large cash reserves needed to withstand difficult trading conditions."

They can also get caught up in a liquidity spiral. In a falling market, institutional investors often sell out of smaller holdings first to avoid getting trapped in an illiquid position.

"They then also stop buying, pushing prices down further and faster on even lower levels of liquidity," read Ophir's investment strategy memo.

"And while small-cap managers might see even cheaper stocks, many are unwilling to enter the market so prices in small-cap stocks keep falling at a faster rate."

But the reward for hanging onto the small fish is that, on the other side, they rally much faster than large caps.

"Historically, in the 12 months after the US small-cap index has bottomed around a recession, they have returned an incredible 70% on average – that's 11% higher than large caps," read the Ophir memo. 

"The small-cap rebound is also quick. Most of the additional return benefit versus large caps has happened in the first three months."

So remembering this, here are three small-cap ASX shares that the Cyan C3G Fund is holding onto despite being absolutely hammered last month:

Rock solid investments for the inevitable small-cap recovery

The Mighty Craft Ltd (ASX: MCL) share price tumbled more than 21% in September, but the Cyan team is not worried.

"The alcohol industry globally is dominated by a handful of powerful players, but the domestic industry has been growing strongly in recent years," read Cyan's memo to clients.

"We think it's a sector worth being exposed to and Mighty Craft is our preferred business model, whereby they acquire and accelerate growing beer and spirits brands through provision of capital, distribution and retail and wholesale points of presence."

The nature of the industry means Mighty Craft could become an attractive takeover target.

"Inevitably the successful domestic businesses or alcohol brands are acquired as they obtain, or are on a clear path to obtaining, reasonable market share."

Melbourne video games developer Playside Studios Ltd (ASX: PLY) is another small-cap Cyan analysts are backing, despite a 14.3% drop in valuation last month.

"This gaming business continues to impress with the execution of its growth strategy through a business model based on work-for-hire, original IP development and new initiatives like a third party publishing division," read the memo from Cyan.

"In short, an exceptional team with a strong and growing business in a strong and growing industry."

The heavy discounting in its shares means it's another potential takeover subject.

"We believe Playside can deliver great returns to shareholders independently or as an M&A target in time (hopefully both)," said the Cyan portfolio managers. 

"We see this as a unique opportunity to get exposure to these dynamics in the ASX listed space."

The Cyan team has been a longtime fan of hospital software maker Alcidion Group Ltd (ASX: ALC).

And that hasn't changed despite a 12.1% drop in share price in September.

"Alcidion is building a strong position in the digitisation of hospital management systems, both administrative and clinical, in Australia and the much larger UK market."

The business raked in $34 million in revenue for the 2022 financial year. Its June quarter revenue was 46% up year on year.

"The company has worked hard to become one of the leading providers and the timing looks perfect to scale the business significantly over the next two years as governments drive the push towards technology in healthcare in a post-COVID environment."

The post 3 battered small-cap ASX shares we're still backing: expert appeared first on The Motley Fool Australia.

It has been a tough year for small cap investors, with the S&P/ASX Small Ordinaries Index (ASX: XSO) down 23% over the past 12 months.

That fall, as painful as it is, has been cushioned by the epic performance of a handful of large  commodity stocks, including the Core Lithium Ltd (ASX: CXO) share price surging 177% higher, the New Hope Corporation Limited (ASX: NHC) share price roaring 157% higher, and the Lake Resources N.L. (ASX: LKE) share price jumping 89% higher in the past year.

How New Hope shares – with its $5.7 billion market capitalisation – are included in the Small Ordinaries Index and are one of life's mysteries. Also a constituent of the S&P/ASX 200 Index (ASX: XJO), New Hope is around the 80th largest ASX-quoted company in the country.

Moving on…

Writing in its September monthly update, the Cyan C3G Fund notes the ongoing severe volatility in global markets, with the US stock market having now experienced its worst first nine months of a calendar year in 20 years.

If your portfolio is hurting, like mine, you'll know why. 

It's even worse if you don't hold any of the hot lithium and coal stocks, like me, and the Cyan C3G Fund. Or you do hold some of the many big losers over the past 12 months, like the Aussie Broadband Ltd (ASX: ABB) share price slumping 59% or the Pinnacle Investment Management Group Ltd (ASX: PNI) share price falling 41%, like me.

Cyan C3G Fund portfolio managers Graeme Carson and Dean Fergie say "the Australian economy appears to be in a stronger position than some of its counterparts, but the financial markets aren't yet reflecting this."

That's certainly the case in the small-cap space, with the share prices of many companies down 60% or more despite some of them growing quickly, having good balance sheets with no debt, and being cash generative.

Or perhaps I'm just bemoaning the performance of the small and micro cap stocks in my portfolio…

Here's when stock markets could start to move higher…

Looking for a silver lining amongst these cloudiest of times, the Cyan C3G portfolio managers say that with the market already pricing in an upcoming economic slowdown, the hope is "financial markets will front-run the recovery just as they did the downturn… as they have with all bull and bear market cycles in the past."

As for the timing, as ever, no-one knows when markets will turn. That said, it may be sooner rather than later.

Cyan C3G believes "the most-likely first positive catalyst for a stock market recovery will be a line of sight as to when the interest rate hike cycle will end." The portfolio managers go on to say it is expected the US will end its cycle in the first quarter of calendar 2023, with Australia perhaps being a month or two earlier.

That's not too far away, and markets, being forward-looking beasts, could move higher before then. 

If I was taking a guess – and it's nothing more than a guess – I reckon the stock market could be in for a big January as the so-called January Effect kicks into high gear.

As bottom-up stock pickers, the Cyan C3G portfolio managers are confident the companies in their portfolio will have materially stronger market share positions in their industry in years to come, irrespective of economic conditions.

The September monthly update outlines the investment rationale for some of the Cyan C3G key portfolio positions including…

Alcidion Group Ltd (ASX: ALC), a company building a strong position in the digitisation of hospital management systems, both administrative and clinical, in Australia and the much larger UK market. The Alcidion share price is down almost 60% over the past 12 months, yet Cyan say "the timing looks perfect to scale the business significantly over the next 2 years as governments drive the push towards technology in healthcare in a post-Covid environment."

Playside Studios Ltd (ASX: PLY) is an independent video game developer with "a business model based on work-for-hire, original IP development and new initiatives like a 3rd party publishing division," according to Cyan C3G. The Playside share price fell 25% in September, yet the fund managers believe the company "can deliver great returns to shareholders independently or as an M&A target in time (hopefully both). We see this as a unique opportunity to get exposure to these dynamics in the ASX listed space."

The post Top fund manager thinks ASX could start to move decisively higher, potentially sooner than you might be expecting appeared first on The Motley Fool Australia.

This week, we bid farewell to winter… and another tumultuous ASX earnings season. So now, looking ahead to the brighter days of spring, hopefully the stock market can also deliver some healthy new growth.

Armed with a barrow full of info on which listed companies have been flourishing and floundering, we asked our Foolish contributors to let us know which ASX shares they reckon are worth planting some cash in right now.

Here's what the team came up with:

8 best ASX shares for September 2022 (smallest to largest)

• DroneShield Ltd (ASX: DRO), $88.67 million
• Airtasker Ltd (ASX: ART), $184.92 million
• Alcidion Group Ltd (ASX: ALC), $196.55 million
• Lovisa Holdings Ltd (ASX: LOV), $2.31 billion
• Core Lithium Ltd (ASX: CXO), $2.39 billion
• Lynas Rare Earths Ltd (ASX: LYC), $7.78 billion
• South32 Ltd (ASX: S32), $19.21 billion
• CSL Limited (ASX: CSL), $141.57 billion 

(Market capitalisations as of 31 August 2022)

Why our Foolish writers love these ASX shares

DroneShield Ltd

What it does: DroneShield specialises in designing and developing products to detect and disable threats from unmanned drones.

By Aaron Teboneras: The DroneShield share price sank by more than 19% on Wednesday, and I believe the stock is now trading at a bargain.

The substantial fall came on the heels of DroneShield's half-year results, which were released after market close on Tuesday. In its release, the company advised it had achieved revenue of $3.6 million, down 6% on the prior period ($3.9 million was delivered in the second half of 2021).

However, taking a closer look at some other key metrics, the company recorded cash receipts of $5.2 million in the first half of 2022. This represents a growth of 21% when compared to the $4.3 million recognised in the second half of 2021.

DroneShield said the difference between the revenue and cash receipts received in H1 2022 related to payments received in advance.

The counter-drone market is growing rapidly with a forecast total addressable market of around $5.9 billion by 2026.

In its 2022 second-quarter update, DroneShield also noted the highly favourable macro environment arising from the Russian war in Ukraine, with both sides demonstrating extensive use of small drones.

With this in mind, defence budgets globally, including that of the Australian Government, have been rapidly increasing.

Motley Fool contributor Aaron Teboneras owns shares in DroneShield Ltd.

Airtasker Ltd

What it does: Airtasker operates an online local services platform that helps people who want a task completed connect with those who want to do the work. Furniture assembly, removalist services, website design, handyman services and photography are just some examples of the categories on offer.

By Tristan Harrison: I'm looking for compelling ASX growth shares that are attractively valued.

The Airtasker share price has dropped by around 50% in 2022, but the company is generating solid double-digit growth. In FY22, its gross marketplace volume rose 23.8% to $189.6 million, while revenue increased 18.4% to $31.5 million.

Airtasker also reported that, excluding research and development (R&D) costs, it made positive earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.3 million at the 'Australian marketplace and head office operations' EBITDA level.

I'm also excited by the company's international potential. In the United States, in the FY22 fourth quarter, the number of posted tasks grew 49% quarter-on-quarter.

Motley Fool contributor Tristan Harrison does not own shares in Airtasker Ltd.

Alcidion Group Ltd

What it does: Alcidion provides software solutions to the healthcare industry to improve patient outcomes. The company's flagship product is known as Miya Precision, which incorporates everything from bed management to patient monitoring.

By Mitchell Lawler: Alcidion released its full-year FY22 report earlier this week, showing a continuation of the company's tremendous growth momentum.

For the 12 months, the software provider achieved record revenue of $34.4 million, an increase of 33% from the year prior. Notably, the time frame included one entire half's worth of contribution from Alcidion's Silverlink acquisition.

Ultimately, the two most promising indicators for me from the recent results are the company's lessening dependence on revenue from Australia and New Zealand, reducing geographic risk, and the further improvement in recurring revenue composition, which reached around 68%.

The current valuation could be attractive if management continues to deliver on geographic and client expansion at this pace.

Motley Fool contributor Mitchell Lawler does not own shares in Alcidion Group Ltd.

Lovisa Holdings Ltd

What it does: Jewellery and accessories retailer Lovisa is a staple in many shopping centres around Australia and the world. In addition to its extensive network of brick-and-mortar stores, Lovisa operates a successful e-commerce business.

By Brooke Cooper: Last financial year was a ripper for Lovisa. Its revenue surged 59%, it posted a $59.9 million profit and entered four new markets. It also more than doubled its final dividend to 37 cents per share.

And it's not expected to slow down soon. Morgans analyst Andrew Tang dubbed the company's earnings a "goldmine", saying:

"What was even more remarkable than the result itself was the phenomenal scale of [Lovisa's] ambition.

"The momentum of growth is expected to increase in FY23, and the addition of further new markets … appears more than likely. In our opinion, it won't stop there."

Motley Fool contributor Brooke Cooper does not own shares in Lovisa Holdings Ltd.

Core Lithium Ltd

What it does: Core Lithium is a resource explorer with a key focus on lithium. Its Finniss Lithium Project, located just south of Darwin Port in the Northern Territory, is under development.

By Bernd Struben: Core Lithium has been a stellar performer over almost any longer-term time frame you choose. Shares reached an all-time high of $1.62 on 15 August. At the time of publication, Core Lithium shares are up by around 122% in 2022 and 288% over 12 months. But I don't think the ship's sailed on the good times just yet.

In July, Core Lithium reported that its Finniss construction was progressing on track to export the first lithium by the end of 2022. This comes in an environment where lithium demand and prices are soaring amid the global shift to EVs and battery grid storage.

UBS recently upgraded its lithium price forecasts by 37%. UBS expects global demand for the critical battery metal to rocket 700% by 2030.

Motley Fool contributor Bernd Struben does not own shares in Core Lithium Ltd.

Lynas Rare Earths Ltd

What it does: Lynas has expertise in integrating rare earths metals from mine to metal. It has a portfolio of assets concentrated in the exploration and production of rare earths.

By Zach Bristow: China currently supplies around 80% of the world's rare earths. But recently, growing geopolitical tensions have highlighted the world's need to diversify its supply chain. According to its website, Lynas "holds a unique position as the only significant producer of scale of separated rare earths outside of China".

It also has a considerable first-mover advantage over its ASX competitors. I believe this places the company in a prime position to capitalise on industry tailwinds that could see demand for Australian rare earths soar in the coming few years. This optimism was echoed in research from Jevons Global in a recent note. 

Lynas shares are also rated as a buy by four out of seven brokers, with a consensus price target of $9.89 per share, according to Refinitiv Eikon data. At the time of writing, Lynas trades on a 14.4x trailing price-to-earnings (P/E) ratio and presents with a 3.5% free cash flow yield and 6.7% earnings yield. 

The Lynas share price closed Wednesday's session around 3% higher at $8.88.

Motley Fool contributor Zach Bristow does not own shares in Lynas Rare Earths Ltd.

South32 Ltd

What it does: South32 is a diversified mining company with extensive global operations in base metals such as lead, aluminium, copper, zinc, and nickel.

By Sebastian Bowen: ASX 200 mining company South32 could well be worth a look this September, even though the company has already had quite a stellar run in 2022 thus far. South32's earnings last month contained a bumper 362% increase in annual dividends to 22.7 US cents per share. That's in addition to the special dividends worth another 3 US cents.

But ASX broker Morgans reckons the shares could climb to $5.50 over the next 12 months, which would give investors around 30% upside from today's price of $4.15. The broker also expects the company to deliver even higher dividends for FY23. As such, I believe South32 shares are well worth considering as we enter spring.

Motley Fool contributor Sebastian Bowen does not own shares in South32 Ltd.

CSL Limited

What it does: CSL is a global biotechnology company that develops and delivers innovative therapies and vaccines that save lives, protect public health, and help people with life-threatening medical conditions to live full lives.

By James Mickleboro: I think CSL shares could be a quality option for investors in September.

The last couple of years have been tough for the company due to COVID-19 impacting plasma collections. Since plasma is a key ingredient in CSL's therapies, the lack of supply meant the company was paying over the odds to donors, putting pressure on margins.

The good news is that plasma collections are now at pre-COVID levels. And with its new collection technology expected to result in greater yields, CSL's margins look likely to start improving again in the near term.

Combined with strong demand for its immunoglobulins, the acquisition of Vifor Pharma, and new product launches on the horizon, I believe the future looks very bright for the company.

The CSL share price closed Wednesday at $293.54, down by around 5% over the past year.

Motley Fool contributor James Mickleboro does not own shares in CSL Limited.

The post Top ASX shares to buy in September 2022 appeared first on The Motley Fool Australia.

The All Ordinaries Index (ASX: XAO) is in the green so far today. At the time of writing, it's 0.52% higher at 7,231 points.

Earnings season has been a busy one with plenty of mixed results. Here are three ASX All Ordinaries standouts that are lifting on their earnings today.

Helloworld Travel Ltd (ASX: HLO)

Shares of Helloworld are up 5.67% to $2.05 apiece at the time of writing.

Investors have rallied the share price higher following a robust set of FY22 results that saw the company return to operational profitability.

This translated to a full-year EBITDA loss from continuing operations of $10.6 million compared to $24.5 million in FY21.

Despite this, the momentum towards the back end of FY22 gave Helloworld confidence in providing FY23 guidance.

It expects a FY23 EBITDA profit of $22-$26 million.

Helloworld shares are up 20% in the past 12 months of trade.

Wisr Ltd (ASX: WZR)

Shares of Wisr were on the move in early trade and have since levelled back to trade in-line with yesterday's closing price.

The non-bank lending company delivered a 118% year-on-year gain in operating revenue with total new loan originations increasing 67% to $611 million.

This saw loan book growth of 103% for the 12 months to $780 million.

As a result, cash EBITDA saw an improvement of 30% to a loss of $7 million, ahead of last year's loss of $10 million.

Zooming out, Wisr shares are down 74% in the past 12 months.

Alcidion Group Ltd (ASX: ALC)

Shares of Alcidion are also cruising along in afternoon trade today, currently up 3.33% to 15.5 cents apiece.

Following its FY22 results, the company that specialises in digital software for healthcare providers has caught a bid as investors evaluate the company's growth trends.

Full year revenue was up 33% year on year to $34 million with total contract value (TCV) of $57.7 million.

This momentum sees Alcidion enter FY23 with more than $28 million in contracted revenue, an 87% gain on the same time last year.

Alicidion shares are down more than 55% for the year to date.

The post 3 ASX All Ords shares lifting on full-year results appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are racing higher:

Alcidion Group Ltd (ASX: ALC)

The Alcidion share price is up 15% to 15.5 cents. Investors have been buying this healthcare technology company's shares after it reported a record performance during the fourth quarter. This led to FY 2022 revenue coming in at $34 million, up 31% year on year. Also getting investors excited was the company reporting positive fourth-quarter operating cash flow of $3.3 million.

Betmakers Technology Group Ltd (ASX: BET)

The Betmakers share price is up 2.5% to 49.7 cents. The catalyst for this was the release of the betting technology company's fourth quarter and full year update. For the 12 months, Betmakers reported cash receipts of $26.2 million. This was a massive 194% increase on the prior corresponding period.

BrainChip Holdings Ltd (ASX: BRN)

The BrainChip share price is up 2.5% to $1.19. This follows the release of the semiconductor company's quarterly update. Although the company reported second quarter cash receipts of just US$1.2 million, that hasn't stopped investors driving its market capitalisation to the $2 billion mark today.

Zip Co Ltd (ASX: ZIP)

The Zip share price is on form again and up a further 7% to $1.10. Investors have been buying the buy now pay later (BNPL) provider's shares this week despite there being no news out of it. Though, Zip isn't alone in experiencing some investor love. Fellow beaten down BNPL share Sezzle Inc (ASX: SZL) is also rocketing higher on no news.

The post Why Alcidion, Betmakers, BrainChip, and Zip shares are racing higher appeared first on The Motley Fool Australia.

In afternoon trade, the healthcare technology company's shares are up over 18% to 16 cents.

This follows the release of Alcidion's unaudited fourth quarter and full year update this morning.

Alcidion share price higher on strong top line growth

• FY 2022 revenue of $34 million, up 31% year on year
• Recurring revenue of $23 million
• New sales with a total contract value (TCV) of $57.7 million, up 96% year on year
• Fourth quarter TCV sales of $14.8 million
• Positive fourth-quarter operating cash flow of $3.3 million
• Positive underlying EBITDA in FY 2022 excluding acquisition costs
• Cash balance of $17.3 million

What happened during the fourth quarter?

For the three months ended 30 June, Alcidion finished the financial year in style by delivering record quarterly cash receipts of $14 million. This underpinned a 29% increase in full-year cash receipts to $41.4 million.

Management advised that this was driven by the signing of several new customers in the Australian and UK markets and upgrades by a number of strategic, long-term customers to the latest Miya Precision platform.

The latter includes new five-year contract upgrades with Northern Territory Health, Western Health Victoria, Alfred Health, and East Lancashire Hospitals NHS Trust.

Management commentary

Alcidion's managing director, Kate Quirke, was pleased with the 12 months and appears optimistic on the future. She said:

Alcidion brings FY22 to a close with an outstanding final quarter delivering record cash receipts, which has not only resulted in positive operating cashflow for the quarter but also for the full year FY22.

Alcidion's continued growth in the face of a challenging external business environment is driven not only by large scale (announced) contracts but also by several smaller contracts which cumulatively contribute meaningfully throughout the year, delivering record new sales for FY22 with TCV of $57.7M.

We head into the new financial year with $31.2M of contracted and expected renewal revenue, which when combined with our continually maturing pipeline both in ANZ and UK positions Alcidion for continued strong and profitable growth in FY23.

The post Alcidion share price surges 18% higher on record quarter appeared first on The Motley Fool Australia.

Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Cyan Investment Management portfolio manager Dean Fergie nominates a bargain ASX share that he'd buy and put away for four years.

The ASX share for a comfortable night's sleep

The Motley Fool: If the market closed tomorrow for four years, which stock would you want to hold?

Dean Fergie: I think at the current levels, I think Alcidion Group Ltd (ASX: ALC), which is a hospital software business, has got some very strong commercialised products. 

They're rolling their software out globally to government and private-backed defensive industries. It's well-capitalised, growing strongly, we think incredibly undervalued, and in three or four years' time will be a lot more valuable than it is today.

MF: It's derated a fair bit this year, hasn't it? The share price has almost halved.

DF: Yeah. It really has, surprisingly. You look at comparison stocks like Pro Medicus Limited (ASX: PME), it hasn't been hit nearly as hard. Alcidion's off probably close to 75% off its highs, but we don't really understand it because they've won a number of contracts recently. 

We feel like they're doing all the right things. Their revenue's increasing. It's becoming a serious business. They'll do sort of $35 million in revenue this year, a lot of which is recurring. And we think paying a bit over $100 million in enterprise value for a business like that is great value.

MF: Is it out of favour because it's not a profit maker yet?

DF: Look, I mean, it's not horrendously unprofitable. It's running very close to break-even. So, that's reassuring. 

If it was running at a big loss, we wouldn't be invested. I think maybe the issue with Alcidion has been just a little bit market-related. But they raised quite a bit of money to buy another competitor in the UK at the end of last year [via] a 25% raising. And they raised a lot of money.

Then the market turned a little bit, and I think just a lot of stock came out. And the new investors that had bought in at 25 [cents] and saw it trading at 22, 19, and 18 just, at the end of the financial year, went, "Stuff it. I'm going to take my losses and move on." 

So from what we've seen, if you click on Alcidion and the reports they've released in the last few months, they're all very positive. There's about six announcements of them winning new contracts or extending existing contracts. So we're a little bit confused as to why it's not moving up in share price. 

But that's the market, so that's what we have to deal with.

The post Buy and hold this 'incredibly undervalued' ASX share for 4 years: fundie appeared first on The Motley Fool Australia.

Fears of rising interest rates have really taken their toll on growth and small-cap ASX shares.

That's because smaller, rapidly expanding businesses are typically the ones who have taken on debt to fuel their growth.

And when a company borrows funds to operate, investors revise down its valuation as interest rates rise. This is because every dollar of future earnings will cost more to produce.

As such, during frightening times for small cap and growth shares, it could be worthwhile checking out the businesses that have plenty of cash on their books.

This theoretically means rate hikes don't affect their future performance. If anything, it can help them marginally, as they can earn a better return on their cash.

And of course, not needing to do equity raising rounds means existing shareholders don't have their investments diluted.

Small caps with so much cash they gave some back

In a shocking month, small-cap specialist fund Cyan C3G saw almost every stock in its portfolio suffer a freefall in June.

But portfolio managers Dean Fergie and Graeme Carson feel especially comfortable about their holdings that boast useful cash reserves.

In fact, two of those companies actually implemented a share buyback to return some of that excess capital back to investors.

"Touch Ventures Ltd (ASX: TVL) holds almost all of its current market capitalisation in cash — $74 million market cap vs $67 million in cash, plus investment assets valued in May 2022 at over $120 million!" Fergie and Carson said in a memo to clients.

"And, quite prudently, has activated an aggressive share buyback, repurchasing over 1 million shares in June."

Despite this, Touch shares lost 24% in June.

ReadCloud Ltd (ASX: RCL) suffered even more, shaving 29% off its valuation last month.

"Digital textbook company ReadCloud holds $5.4 million on its balance sheet, made a net profit of over $1 million in 1H22 and has also announced a share buy-back."

Price crashes don't make sense

The memo also named three other cashed-up businesses that Cyan is keeping the faith in.

"Other companies that hold significant net cash balances include Alcidion Group Ltd (ASX: ALC) $18 million; Raiz Invest Ltd (ASX: RZI) $19 million; and Vita Group Limited (ASX: VTG) $20 million."

The portfolio managers spoke of their angst in seeing great businesses like Alcidion and Raiz respectively lose 21% and 22% of their valuation last month.

"With Alcidion having a strong balance sheet, significant recurring revenues derived from government and private domestic and international hospitals and health care providers, there are numerous reasons to expect this stock could be a strong performer again in FY23," read the memo.

"With almost 300,000 active and engaged financial customers in Australia, Raiz is generating strong recurring revenues and is likely to garner the interest of a myriad of local financial institutions."

The post 5 small-cap ASX shares sitting on a pile of cash: experts appeared first on The Motley Fool Australia.

This year has been a rough ride for most ASX shares, but small-cap companies have suffered more than their larger cousins.

The Cyan C3G Fund, which specialises in small-cap stocks, has felt the pain as much as any retail investor.

Portfolio managers Dean Fergie and Graeme Carson told clients in a memo that, as participants in the fund themselves, their personal wealth has also taken a massive haircut.

"There's no other way to express it. We had a terrible FY22, with the fund falling 38%," read the memo.

"Even against the S&P/ASX Small Ordinaries Industrials (ASX: XSI), which lost 24%, it was a poor result."

While they admitted to some mistakes — mainly not taking some profits last year before the crash — the fund has a long-term focus.

"Nobody rings a bell at the bottom, but from what we're seeing and hearing, our company outlooks are far better than the market prices are currently implying," read the Cyan memo.

"As such, we remain particularly confident that the prices of our holdings will improve significantly in the near-term."

With this philosophy in mind, there are a couple of ASX shares in the Cyan portfolio that have been particularly bruised. But Fergie and Carson are holding on for a turnaround.

Strong balance sheet and recurring revenues

Healthcare software provider Alcidion Group Ltd (ASX: ALC) saw its share price tumble nearly 70% over the 2022 financial year.

Fergie and Carson admitted COVID-19's impact on its United Kingdom growth and an "ill-timed" stock issue late last year just before markets plunged did not help.

"However, a raft of recent contract wins have shown significant catch-up by the company," their memo read.

"Indeed, total revenue for FY22 is likely to come in at around $34 million — up 40% on the prior year — a positive result and in stark contrast to recent stock price action."

Alcidion's market capitalisation is now down to just $146 million, so analyst coverage is scarce.

However, the experts at Canaccord Genuity Corp agree with Cyan. They rate the stock as a strong buy, according to CMC Markets.

The Cyan portfolio managers said that all the original tailwinds are still there for the company to make a roaring comeback. 

"With Alcidion having a strong balance sheet, significant recurring revenues derived from government and private domestic and international hospitals and health care providers, there are numerous reasons to expect this stock could be a strong performer again in FY23."

Sell-off of this takeover target is 'overdone'

The share price for micro-investment platform Raiz Invest Ltd (ASX: RZI) plunged 60% over the 2022 financial year.

Fergie and Carson said the stock "hurt us materially".

"Frustratingly, the company's metrics have actually improved over the year," read their memo.

"FUM [funds under management] is up from $905 million to $940 million and customer numbers globally are up 35% — albeit in Australia they have only risen 3%."

While they admitted there is transitory concern about a slowdown in domestic growth, they reckon the market has overreacted.

"We seriously consider that the pull-back in the price is overdone, particularly in light of the $10 million investment Seven West Media Ltd (ASX: SWM) made in the company late last year."

The Cyan team also thinks Raiz's considerable customer base and reduced valuation could make it attractive as a takeover target.

"With almost 300,000 active and engaged financial customers in Australia, Raiz is generating strong recurring revenues and is likely to garner the interest of a myriad of local financial institutions."

The post 2 ASX shares we're sticking with after 60% falls: fund managers appeared first on The Motley Fool Australia.

Here's why these small cap ASX shares could be worth adding to your watchlist:

Adore Beauty Group Limited (ASX: ABY)

The first small cap to watch is Adore Beauty. It is a leading online beauty retailer which has been growing strongly over the last few years. This has been driven by a significant lift in customer numbers thanks to the shift to online shopping. The good news for Adore Beauty and investors is that this shift is only really getting started in the beauty category. This gives the company a long runway for growth as the shift continues and more sales move online.

Alcidion Group Ltd (ASX: ALC)

Another small cap share to watch is Alcidion. It is a growing informatics solutions company which provides software which has been designed to improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications. Demand has been strong for its offering, which is supporting strong sales growth. For example, earlier this week Alcidion revealed that year to date FY 2022 new sales had reached $42.9 million. This is up 93% on cumulative new sales at the same time last year.

Catapult Group International Ltd (ASX: CAT)

A final small cap to look at is Catapult. It is a global sports analytics company that provides elite sporting organisations and athletes with real time data and analytics to monitor and measure athletes. It has been a positive performer in FY 2022, with the company reporting a 13% increase in revenue to $37.5 million during the first half  This was driven by a sizeable 29% growth in subscription revenue, which reflects Catapult's strategic shift to a focus on high quality recurring revenue SaaS deals.

The post 3 exciting small cap ASX shares to watch appeared first on The Motley Fool Australia.

With all the crazy events going on around the world, many ASX shares have been hammered this year regardless of how the underlying business is going.

And that's exactly the disappointment Cyan portfolio manager Dean fergie relayed to his clients in a memo this week.

"Market sentiment, in the short-term, is a powerful force and the recent inflation fears (and associated rate rises), exacerbated by the invasion of Ukraine and the uncertainty and concerns around energy prices and the potential economic impact, has created almost the perfect storm for many of the fund's holdings."

However, Fergie told his clients that short-term shocks like this still doesn't shake his longer-term faith in the stocks that he's backed.

"In times of turmoil, it is valuable to focus on the underlying operational performance of our investments, particularly when the disconnect between the share prices and business performances has been stark," he said.

"We remain particularly positive given the optimistic results recently released."

Fergie examined 3 ASX shares that plunged in February despite the company performance still remaining strong:

Drink away the world's woes

Shares for craft drink provider Mighty Craft Ltd (ASX: MCL) fell a hair-raising 18% over last month.

Fergie noted that this freefall happened at the same time as it reported spectacular numbers.

The first-half saw revenue of $30 million, which is up 132%, and a "wildly successful launch" of its Better Beer brand.

"With the economy reopening and increased scale of the business post its acquisition of The Adelaide Hills Group, the company moved into profitability in the last quarter of the calendar year — a milestone that looked a pipedream only a few months ago."

According to Fergie, that was not just a fluke half and the outlook remains strong.

"We continue to back management to deliver on their aggressive growth ambitions which include posting revenues in excess of $70 million for FY22," he said.

"Despite these important financial milestones being achieved, the share price did not, in the short-term, reflect the company's underlying achievements."

Mighty Craft shares closed Thursday at 30 cents, which is almost 30% down from the start of February.

Wealth managers in the firing line

Fergie has publicly backed micro-investment platform Raiz Invest Ltd (ASX: RZI) for a while now.

Similar to Mighty Craft, the company reported excellent numbers in February but the share price sunk like a stone.

"Investment platform business Raiz delivered strong growth metrics period-on-period, including active customer growth of 73% to 595,000, funds under management growth of 71% to $1 billion and group revenue growth of 77% to $9.3 million (the vast majority of which is recurring)," said Fergie.

"Again, this was not reflected in share price movement with the stock falling 17% in February."

He suspected general market sentiment went against listed fund managers, with huge selloffs seen in sector stalwarts Magellan Financial Group Ltd (ASX: MFG) and Pinnacle Investment Management Group Ltd (ASX: PNI).

Raiz shares closed Thursday at $1.14.

The software maker that set a new company record 

Healthcare software provider Alcidion Group Ltd (ASX: ALC) reported "solid" half-year results, according to Fergie.

But guess what, its share price plunged 17% in February.

Fergie noted the contracted revenue of more than $27 million was a company record, despite COVID-19 delaying purchasing decisions in UK hospitals.

"As such we expect some material short-term catalysts by way of new contracts out of the region," he said.

"Alcidion is building a very strong position in the healthcare industry which is expected to rapidly expand as the digitisation of the healthcare industry accelerates."

The Alcidion share price finished Thursday at 18 cents.

Deals galore in February, but share price didn't match the news

Fergie has also been a longtime fan of games developer Playside Studios Ltd (ASX: PLY), which saw its shares lose 9% in February.

Again, Fergie is consoled by an excellent half-year report.

"This Australian-based game developer delivered a great interim result which clearly illustrated its strong growth and a healthy outlook," he said.

"Revenue grew 61% half-on-half to $9.4 million." 

In the same month, Playside revealed it booked $8.4 million in revenue in just one week after it launched Beans NFT.

"Further good news was released when Playside signed a material work-for-hire contract with Activision Blizzard Inc (NASDAQ: ATVI), one of the world's most successful interactive entertainment companies and maker of iconic games such as Call of Duty, Overwatch, Guitar Hero and Candy Crush."

The share price movement in February confounded Fergie.

"Through the month the share price of PLY rallied from $1.02 to $1.40 before, disappointingly, ending the month at $0.93 — a head-scratching outcome given the materially good news."

Playside shares closed Thursday at 94 cents.

The post 4 fallen ASX shares that are still awesome businesses: expert appeared first on The Motley Fool Australia.

However, if your risk tolerance allows for it, having a bit of exposure to this side of the market could be a good thing for a balanced portfolio given the potential returns on offer.

With that in mind, here are three small cap ASX shares that could be worth watching closely:

Alcidion Group Ltd (ASX: ALC)

The first small cap share to watch is Alcidion. It is a growing healthcare informatics solutions company. Alcidion provides software which has been designed to improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications. It appears well-placed for growth in the future thanks to increasing demand and the ongoing shift to a paperless environment in the healthcare sector.

Bigtincan Holdings Ltd (ASX: BTH)

Another small cap ASX share to watch is this leading provider of enterprise mobility software to businesses globally. Bigtincan's software allows teams to perform at higher levels and deliver better business results by maximising their use of sales collateral to engage with customers and prospects more effectively. Demand for its software continues to grow and has been underpinning strong annualised recurring revenue (ARR) growth in recent years.

Silk Laser Australia Limited (ASX: SLA)

A final small cap to watch is Silk Laser. It is one of Australia's largest specialist clinic networks, offering a range of nonsurgical aesthetic products and services. Silk's five core offerings comprise laser hair removal, cosmetic injectables, skin treatments, body contouring and skincare products. Thanks to a combination of growing demand and store expansion opportunities, Silk has been tipped to continue its solid growth long into the future. It released its half year results this morning and revealed a 70% increase in network sales and a 20% lift in EBITDA.

The post 3 growing small cap ASX shares going places appeared first on The Motley Fool Australia.

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

Alcidion Group Ltd (ASX: ALC)

The first small cap share to watch is Alcidion. It is a growing informatics solutions company aiming to transform healthcare with proactive, smart, intuitive technology solutions that improve the efficiency and quality of patient care in healthcare organisations worldwide. Alcidion notes that it offers a complementary set of software products and technical services that create a unique offering in the global healthcare market.

Bigtincan Holdings Ltd (ASX: BTH)

Another small cap ASX share to look at is this leading provider of enterprise mobility software to businesses globally. Bigtincan's software unlocks new and more effective ways for teams to perform at higher levels and deliver better business results. Management notes that its platform empowers sales and service representatives to maximise their use of sales collateral to engage with customers and prospects more effectively.

Booktopia Group Ltd (ASX: BKG)

A third small cap ASX share to watch is Booktopia. This online book retailer has been growing at an explosive rate in recent years. This has been driven by the shift to online shopping and the opening of its new distribution centre. The latter is allowing the company to capture the heightened demand and ship more books than ever. In fact, for the 12 months ending June 2021, the company sold one item approximately every 3.9 seconds and shipped approximately 8.2 million items. This averages out to be a massive 32,800 items per business day.

Whispir Ltd (ASX: WSP)

A final small cap ASX share to watch is Whispir. It is a global scale SaaS company that provides a communications workflow platform that automates interactions between organisations and people. Its products enable organisations to improve their communications through automated workflows to ensure stakeholders receive accurate, timely, useful and actionable insights. Management estimates that it has a total addressable market of US$4.7 billion in just the United States market.

The post 4 small cap ASX shares for your watchlist appeared first on The Motley Fool Australia.

Here's what you need to know about these exciting small cap shares:

Alcidion Group Ltd (ASX: ALC)

The first small cap share to watch is this healthcare informatics solutions company. Alcidion provides software which has been designed to improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications. One of its solutions is Patientrack. It helps clinicians know a patient's status in real-time. This means that doctors can intervene and prevent patient deterioration faster than ever before. Patientrack uses predictive algorithms to support time-critical care.

Bell Potter currently has a buy rating and 45 cents price target on its shares.

Nitro Software Ltd (ASX: NTO)

Nitro Software is another small cap ASX share to watch. It is a software company that is aiming to drive digital transformation in organisations around the world. Its key solution is the Nitro Productivity Suite. This provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service, and desktop-based software solution. Nitro counts businesses of all shapes and sizes as customers. This includes a number of the largest companies in the world.

Bell Potter is also a fan of Nitro. It currently has a buy rating and $1.98 price target on its shares.

Volpara Health Technologies Ltd (ASX: VHT)

A final small cap ASX share to watch is Volpara. It is a provider of software that uses artificial intelligence imaging algorithms to assist with the early detection of breast and lung cancer. Volpara has been growing its top line at a rapid rate in recent years thanks to market share gains and its expanding average revenue per user (ARPU) metric. Pleasingly, thanks to acquisitions over the last couple of years and its growing product portfolio, the company's ARPU metric is expected to rise significantly in the coming years. This could be supportive of further strong growth over the 2020s

Morgans is bullish on Volpara. It currently has an add rating and $1.94 price target on its shares.

The post 3 exciting small cap ASX shares to watch appeared first on The Motley Fool Australia.

All three have been given buy ratings and tipped for big things in the future. Here's what you need to know about them:

Alcidion Group Ltd (ASX: ALC)

The first small cap ASX share that has been given a buy rating is Alcidion. It is a healthcare technology company behind a range of solutions including Patientrack. It helps clinicians know a patient's status in real-time. Patientrack uses predictive algorithms to support time-critical care, allowing doctors to intervene and prevent patient deterioration faster than ever before. Demand has been growing for its solutions from a range of international healthcare institutions, which has been underpinning strong revenue growth.

Bell Potter currently has a buy rating and 45 cents price target on Alcidion's shares.

Nitro Software Ltd (ASX: NTO)

Another small cap ASX share to look at is Nitro Software. It is the fast-growing document productivity software company behind the increasingly popular Nitro Productivity Suite. This suite provides integrated PDF productivity and electronic signature tools to businesses of all sizes. In addition, the company recently entered into an agreement to acquire Connective NV for €70 million (~A$110 million). Connective is Belgium's leading eSign software-as-a-service (SaaS) business, with a fast-growing market share in France and customers in 11 other European countries. This puts Nitro in a strong position for growth in a total addressable market estimated to be worth $28 billion per year.

Bell Potter is also very positive on Nitro Software. It currently has a buy rating and $4.50 price target on its shares.

Volpara Health Technologies Ltd (ASX: VHT)

A final small cap that is rated as a buy is Volpara. It is a provider of breast imaging analytics and analysis products that improve clinical decision-making and support the early detection of breast cancer. Demand for its offering has been growing strongly in recent years and has supported stellar revenue growth. This continued during the first half of FY 2022, with Volpara reporting subscription revenue growth of 35% to NZ$11.8 million. This is still only a fraction of its US$750 million addressable market in just breast cancer screening. Volpara is also now expanding into the US lung cancer screening market with its RevealDx and Riverain integrations.

Morgans currently has an add rating and $1.87 price target on the company's shares.

The post 3 exciting small cap ASX shares rated as buys appeared first on The Motley Fool Australia.

James Mickleboro: Life360 Inc (ASX: 360)

Life360 operates in the digital consumer-subscription services market with a focus on products and services for digitally native families. Its core offering is the Life360 app, which was developed for families and includes features such as messaging, driving safety, and location sharing.

At the last count, the company had over 33 million users of its app. This is generating significant recurring revenue, but management isn't resting on its laurels. Life360 recently acquired wearables company Jiobit and items-tracking company Tile. These acquisitions provide it with material cross and up-selling opportunities in 2022.

Bell Potter is very bullish on Life360. It recently named the company as one of its top tech picks of 2022. The broker's analysts have a buy rating and $16.25 price target on Life360 shares. On Friday, the Life360 share price closed at $9.50.

Motley Fool contributor James Mickleboro owns shares of Life360 Inc.

Aaron Teboneras: Coles Group Ltd (ASX: COL)

Coles is a leading Australian retailer with over 2,500 retail outlets nationally, servicing more than 20 million customers each week.

The supermarket giant's share price has struggled to gain traction in 2021, falling roughly 2% for the period. This comes despite Coles executing its strategy to respond to the changes in consumer demand and behaviour since the onset of COVID-19.

Initiatives have included further investment in Coles Online, such as adding around 250 delivery stores and upgrading more than 100 click-and-collect locations. The company achieved a strong first quarter for FY22, with e-commerce revenue growth of 48% for its supermarkets division.

Coles remains optimistic on the outlook for 2022 as vaccination rates continue to rise across the country. Last month, analysts at Citi raised their rating on Coles shares to 'buy' from 'neutral'. In addition, the broker also lifted its 12-month target for the Coles share price by 4% to $19.60. Based on Friday's closing price of $17.68, this implies an upside of around 11%.

Motley Fool contributor Aaron Teboneras does not own shares of Coles Group Ltd.

Sebastian Bowen: South32 Ltd (ASX: S32)

Diversified miner South32 could be worth a look in 2022. This mining company gives investors exposure to a wide range of commodities, including silver, aluminium, lead, and nickel.

Broker Goldman Sachs has currently rated South32 shares as a 'conviction buy', with a 12-month share price target of $4.40. That implies a potential upside of roughly 10% not including dividends.

Speaking of dividends, Goldman also reckons South32 will be able to fund payouts in FY22 and FY23 that would equate to yields of between 11% and 12%. If this proves to be the case, South32 shares could prove to be an underappreciated income stalwart in 2022 and beyond.

Motley Fool contributor Sebastian Bowen does not own shares of South32 Ltd.

Mitchell Lawler: Alcidion Group Ltd (ASX: ALC)

Alcidion provides a range of technology solutions to the healthcare industry. These include Miya Precision, Smartpage, Patientrack, and ExtraMed. These offerings are currently distributed in the United Kingdom, Australia, and New Zealand, servicing more than 300 hospitals and 60 healthcare organisations.

The company is currently in the process of raising $55 million to fund the acquisition of UK-based Silverlink – which is one of the world's most widely-used patient administration systems in the National Health Service (NHS). Post-acquisition, Alcidion will boast a 26% share of the NHS provider market in the United Kingdom.

Analysts at Bell Potter currently hold a 'buy' rating on the stock with a price target of 45 cents per share. Based on the Alcidion share price at Friday's close, this represents an upside of around 70%.

Motley Fool contributor Mitchell Lawler does not own shares of Alcidion Group Ltd.

Tristan Harrison: Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is a leading e-commerce beauty business.

It is currently 'buy'-rated by Morgan Stanley with a price target of $6. That compares to the current Adore Beauty share price of $4.10.

According to Adore, the beauty and personal care market in Australia is worth $11.2 billion, with compound annual growth expectations of 26% per annum to 2024.

The company is investing to grow its brand awareness, win new customers and increase customer retention. In the first quarter of FY22, revenue grew 25% to $63.8 million and returning customers grew 63% to 418,000. Higher margins are expected as Adore scales in the upcoming years.

Motley Fool contributor Tristan Harrison does not own shares of Adore Beauty Group Ltd.

Zach Bristow: IGO Ltd (ASX: IGO)

Analysts believe resources giant IGO remains well positioned to continue benefitting from the commodities super-cycle that's been occurring since 2020.

JP Morgan recently noted this, explaining that IGO has commodity exposure to nickel, copper, and cobalt through its 100%-owned Nova asset. The broker highlighted that its stakes in the world-class Greenbushes spodumene mine and Kwinana hydroxide plant makes IGO a one-stop stock for electric vehicle raw materials.

IGO's strong portfolio positioning has it rated as a 'buy' from 9 out of 15 analysts provided by Bloomberg Intelligence.

Barrenjoey, Jefferies and JP Morgan each value the IGO share price at well over $12. With metals markets showing continued strength, the brokers believe IGO is well poised to head towards these upside targets. IGO shares closed Friday's session at $11.35.

Motley Fool contributor Zach Bristow does not own shares of IGO Ltd.

Brendon Lau: Nearmap Ltd (ASX: NEA)

It's a controversial call as tech stocks are deeply out of favour, but some analysts believe the Nearmap share price could surprise on the upside in 2022. Morgan Stanley has grown more confident on the mapping technology company since its trading update last month.

The broker believes the group's first-half annual contract value will be at least US$108 million (around AU$143 million) That is around AU$15 million above the same time last year. And if Nearmap can deliver a similar increment in the FY22 second half, it shouldn't have too much trouble meeting consensus estimates.

In other words, too much bad news may be priced into the Nearmap share price, considering its crash of more than 30% this year to $1.53 as of Friday's close. Morgan Stanley maintains an overweight rating on Nearmap shares with a 12-month price target of $3.20.

Motley Fool contributor Brendon Lau owns shares of Nearmap Ltd.

The post Top ASX shares to buy in 2022 appeared first on The Motley Fool Australia.

You can't win them all, especially in the stock market investing game.

Each month you'll see some of your ASX shares plunge in value. During market downturns you might even see your entire portfolio in the red.

But short term movements, experts say, should be ignored. If you invest with a long-term horizon, the more important factor is whether you still have faith in the businesses you own.

It's not just the everyday investor but even the professionals have to make such judgments.

Cyan Investment portfolio manager Dean Fergie was faced with this exact dilemma as he pored over 3 ASX shares in his fund that shockingly underperformed in November:

ASX share that's haemorrhaging value but with 'exceptionally bright' future 

Delivery service platform provider Zoom2u Technologies Ltd (ASX: Z2U) saw its shares plummet 22% last month.

According to Fergie, it underperformed even though the business was showing "strong underlying customer growth and revenue of its courier service".

"It's obviously exceedingly frustrating when stock prices appear to contradict underlying operating performance," he said in a memo to clients.

"But we are also not so naive as to not consider possible underlying issues."

Zoom2U's white-label fleet management software Locate2U was also seeing "impressive expansion", he added.

"We met with MD Steve Orenstein in Sydney last week and remain confident the company's future is exceptionally bright with strong scalability and significant structural tailwinds."

Unfortunately the stock has dropped a further 20% this month, to trade at 34 cents on Tuesday afternoon.

Neither no news or some news convince the market

Shares for healthcare software maker Alcidion Group Ltd (ASX: ALC) sank 12% in November.

No news is apparently bad news, as far as the market is concerned.

"The Alcidion share price has been sliding of late on an apparent lack of news-flow," said Fergie.

"However, this month they have announced the win of their long-awaited $23 million+ government contract along with a significant acquisition in the UK."

Investor patience will be further tested though, as the Alcidion share price has lost another 20% in December.

The market yet to grasp this opportunity

Touch Ventures Ltd (ASX: TVL), which is an investment firm spun-off from Afterpay Ltd (ASX: APT), debuted in September with an initial public offer price of 40 cents a share.

It was about break-even when November started but that month saw a calamitous 17% fall in the share price.

Fergie suspects it's a temporary misunderstanding by the market.

"Touch Ventures traded lower with the market not embracing (for the moment) our analysis of the underlying value of the investment portfolio and the company's significant relationship with Afterpay."

The Cyan team met with Touch Ventures boss Hein Vogel, which did not change its bullish view on this stock.

"Additionally the company conducted an investee company webinar during the month which should improve investor understanding of the company's asset portfolio."

Touch shares have fallen even more this month, to trade at 28 cents on Tuesday afternoon.

The post 3 ASX shares now bargains after a nightmare November appeared first on The Motley Fool Australia.