3 stocks brokers don’t know about

3 stocks brokers don't know about

These three are sliding under the radar

Mike King

Mike King is a Fool.com.au Investment Analyst and Writer. He caught the investing bug more than a decade ago, at a time when the U.S. had invaded Iraq and fear reigned in the markets. His initial success as the markets took off encouraged his passion and thirst for knowledge. With 13 years behind him at one of Australia's largest domestic banks, Mike's passion for stocks led him to join a boutique funds management firm, where he stayed for four years. A seven-year stint in equity research at one of the largest investment banks in the world followed that, giving Mike a thirst to pursue his passion further. Mike holds a Diploma in Applied Finance and Investment and a Graduate Certificate in Financial Planning. His passion is to help retail investors invest better, and that passion was one of his primary reasons for joining The Motley Fool Australia in late 2011. Mike has written thousands of articles since joining, including for Fairfax Media, Yahoo!7, Ninemsn and has also appeared on ABC's The Business. You can see all of Mikes' holdings here

Published August 14, 2013 11:38 am AEST

While the top 100 Australian companies listed on the ASX are well covered by analysts, there's a host of smaller companies that they have yet to discover, or are too small for them to cover.

And some of those smaller companies will likely end up being big companies in future, so why not discover them before the best gains will be made?

iProperty Group (ASX:IPP) owns and operates some of Asia's largest real estate websites, including marketing leading sites in Malaysia, Indonesia, Hong Kong and Singapore. With a market cap of just $217m, this tiddler could become a multi-billion dollar company – following in the steps of REA Group (ASX:REA), which runs Australia's leading property websites, including realestate.com.au.

BigAir Group (ASX:BGL) provides microwave wireless internet services to corporates, university campuses and has expanded through an acquisition into providing mining camps with internet TV, camp wi-fi and phones in each room. Sliding under the radar of many analysts with a market cap of just $105m, BigAir could have a 'big' future ahead of it.

Capitol Health (ASX:CAJ) runs diagnostic imaging services through more than 35 clinics across Victoria. A smaller player to the likes of Sonic Healthcare (ASX:SHL) and Primary Health Care (ASX:PRY), Capitol Health has a market cap of just $106m, but the potential to grow much further.

Foolish takeaway

It's unlikely that most of the top 100 companies on the ASX will grow ten-fold from here, but if you're looking for ten-baggers (stocks that can go up ten times), then the smaller end of the market is where to begin your search. These three stocks could be just the ticket.

Interested in our #1 dividend-paying stock? Discover The Motley Fool's favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of "The Motley Fool's Top Dividend Stock for 2013-2014."

More reading

Motley Fool writer/analyst Mike King owns shares in iProperty, BigAir and Capitol Health.

Automatic Renewal

By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted service. Don't worry, though – you're not locked in, and can cancel your auto-renewal at any time before each 'anniversary' date without question or penalty.