I think it is fair to say that October was a great month for small-cap investors.
The S&P/ASX Small Ordinaries (Index: ^AXSO) (ASX: XSO) finished the month with a solid gain of 6.3%, compared to a 4.3% gain from the benchmark S&P/ASX 200.
With momentum firmly with small-cap shares, now could be a great time to consider some of the quality options on offer.
Here are three top small-cap shares to take a closer look at:
Big Un Ltd (ASX: BIG)
Although this video technology company's shares have climbed over 1,000% this year, I believe they are still reasonable value given the growth the company is exhibiting. Big Un just reported a cash profit of $5.6 million from operating activities for the first-quarter of FY 2018. Annualised this equates to $22.4 million, pricing its shares at approximately 19x annualised cash earnings. Not bad for a company that posted a 488% increase in first-quarter cash receipts.
Family Zone Cyber Safety Ltd (ASX: FZO)
Family Zone is a fast-growing cyber safety products and services provider that has a growing presence in Asia and the United States. As well as making meaningful progress in the US education sector this year, the company has signed agreements with major Asian telco companies Telkomsel and Maxis Communications that give it access to almost 180 million mobile subscribers. If these can be monetised effectively, the company could generate significant recurring revenues.
Updater Inc (ASX: UPD)
This US-based relocation technology company has been growing at an exceptionally strong rate and now assists with approximately 16.6% of all U.S. relocations. Whilst the revenues generated thus far are next to nothing, the company's intention has always been to penetrate the market sufficiently before monetising the technology. The good news is that management believes it has scaled to the point where this can happen, meaning the company should be generating revenue by the end of the year.
