Earlier today I offered up three great ASX small cap stocks for all serious investors to consider. Here are another three with good dividends and better growth prospects than most stocks in S&P/ASX 200 (ASX: XJO) (INDEX: ^AXJO).
4. ADMEDUS FPO (ASX: AHZ) is a junior diversified biotechnology company with significant growth potential, even from its current price around 14 cents per share. This morning the company released an update on its activities and said revenues for FY14 are expected to be over $9 million (FY13: $7.4 million). With its flagship CardioCel regenerative technology now selling worldwide, increased cash flows and profits are expected. Since I made it my top stock pick in October 2013, it's up around 60%, but I'm not the only one who thinks it's got plenty of room left to run. Both Ballieu Holst and Morgans CIMB have price targets on the stock of 25 cents and 23 cents, respectively.
5. Bentham IMF Ltd (ASX: IMF) is a litigation funder for claims of at least $5 million. It has an impeccable track record with picking successful cases and has been rewarded by investors accordingly. Given the nature of its business (earnings can be "lumpy" depending on when cases are settled), investors considering buying in must be long-term focused and should not try and extrapolate near-term forecasts. For example since 2001, IMF's share price has climbed over 871% but in four of those years its share price depreciated. With more claims under its belt and a wider global network, investors can remain confident in its bright future.
6. Shine Corporate Ltd (ASX: SHJ) is an Australian law firm with an expanding footprint outside its native Queensland. Shine is looking to expand its Personal Injury offering and also grow into "emerging practice areas" which are under-served by other national law firms. As a result its branch network is rapidly expanding both organically and acquisitively. It recently announced the acquisition of Stephen Browne Personal Injury Lawyers, a plaintiff litigation firm based in Western Australia and Emanate Legal, a firm with specialist knowledge of landowner access rights, based in Queensland. It pays a modest but growing 1.2% dividend.
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