Why the Big Un Ltd share price rocketed 20% on Thursday

The Big Un Ltd (ASX:BIG) share price was one of the best performers on the market yesterday. Here's why…

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On Thursday the Big Un Ltd (ASX: BIG) share price was one of the best performers on the local market by some distance.

The video technology company's shares finished the day 20% higher at $1.63.

Why did its shares jump?

Yesterday Big Un announced that it has had a strong start to FY 2018 and expects its extraordinary growth in cash receipts to continue in the first-quarter.

In FY 2017 Big Un reported full-year cash receipts growth of 429%.

Impressively the company has built on this and expects to achieve cash receipts from customers in excess of $12.5 million for the first-quarter of FY 2018.

This will be a massive 390% increase on the prior corresponding period.

According to the release, an excellent performance from the company's sales and production teams in July, strong demand for video subscription in Australia, and a promising start to its U.S. activities has been the catalyst for the strong guidance.

Should you invest?

I think that Big Un could be a great option for investors that are looking for exposure to the small-cap space.

Although its shares have rallied over 600% this year, I don't believe this is by any means a speculative bubble, but rather a well-deserved increase in the shares of a company that has delivered exceptional results.

If the company can replicate its Australian success in the massive U.S. market then the sky really is the limit for its shares.

In light of this, I would put it up there with GetSwift Ltd (ASX: GSW) and Updater Inc (ASX: UPD) as one of the best small-cap shares on the market at present.

Motley Fool contributor James Mickleboro owns shares of GetSwift Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »