The past few weeks have seen the shares prices of these small caps move in different directions. However, Pro Medicus Limited (ASX: PME), Gentrack Group Ltd (ASX: GTK) and Catapult Group International Ltd (ASX: CAT) shares are on my watchlist.
Pro Medicus
Shares of the Melbourne-based medical imagery technology business have moved sideways over the past three months, despite the company delivering record results.
In August it reported a 46% increase in profit to $9.3 million. However, with the company's shares up 1,200% in five years — and the entire company being worth $520 million — it is easy to see why shares didn't budge.
Nonetheless, the opportunity for Pro Medicus is quite large. Therefore, if it can continue to snatch hospital market share away from legacy incumbents it could be worthy of a spot on watchlists.
Gentrack Group
Like Pro Medicus, Gentrack shares haven't moved much in recent weeks. In May, the airport and utilities software provider updated the market on its most recent acquisitions and financial performance. Its shares shot upwards 20%.
Since then, the company has remained quiet given that it is not due to report until November.
Nonetheless, if the company does, in fact, capitalise on its decision to expand in the UK water market it might still be worthy of its current valuation and then some.
At today's prices Gentrack shares yield a 2.5% dividend.
Catapult Group International
Catapult is a Melbourne-based sports technology company. It creates GPS devices which players wear during gameplay and coaching staff can monitor. Catapult's shares have been heavily discounted in recent weeks — it is down 30% in three months.
Last month it reported yet another loss despite decent revenue growth. One area of concern for investors is the possibility of another capital raising, given the company's moderate balance sheet strength. The company believes it has enough capital to see it through the near term, but a capital raising would be unfortunate for shareholders at these low prices.
Foolish Takeaway
Of these three companies, I think Catapult appears to be the riskiest of the lot, with much ambition and potential. However, I think all three companies are worthy of a spot on watchlists in 2017.
