I think the S&P/ASX SMALL ORDINARIES (Index: ^AXAO) (ASX: XAO) is home to a number of exciting companies with extremely bright futures.
So much so I believe three of them could one day find themselves on the illustrious S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). Here they are:
Amaysim Australia Ltd (ASX: AYS)
In its recent half-year result Amaysim reported an impressive 34% increase in mobile subscribers. But the big news from the announcement was the planned launch of its NBN service. If Amaysim can disrupt the home broadband market in a similar way it disrupted the mobile phone market, this fledgling telco company could have a bright future ahead of it. One key advantage Amaysim has over its competition is its asset-light model. I believe this will allow Amaysim to undercut the bigger players whilst still remaining profitable
Collins Foods Ltd (ASX: CKF)
After a 20% drop in its share price this year, Collins Foods' shares are now changing hands at just under 14x trailing earnings. I believe this has left its shares in bargain territory and as a great option for investors willing to make a patient buy and hold investment. The reason for the drop in its share price was largely related to a successful $54.5 million placement of shares placed at a discount. As these funds will be used to accelerate its European expansion, I think now could be an opportune time to invest.
Hansen Technologies Limited (ASX: HSN)
Like Collins Food, Hansen Technologies has seen its share price fall significantly in recent months. I believe this sell-off was based largely on valuation, rather than there being a fundamental weakness in its business. So with the billing services provider's shares now trading at around 23x trailing earnings, I believe they are priced fairly for a buy and hold investment. Especially as I think the stickiness of its current customer base has put it in a good position to deliver solid long-term earnings growth.
