Year-to-date the S&P/ASX Small Ordinaries (Index: ^AXSO) (ASX: XSO) has vastly outperformed its illustrious large-cap equivalent the S&P/ASX 200 by a considerable margin thanks to its 15% gain.
But as impressive as this gain has been, it is nothing compared to some of the gains being made by many small-cap shares.
Two which have gone gangbusters this year are summarised below:
The Big Un Ltd (ASX: BIG) share price has been one of the standout performers on the market this year with a mouth-watering return. The video technology company's shares started the year at 27 cents and now trade at $3.14. That's a return of over 1,000% this year, which makes Big Un a "ten-bagger".
Despite this strong gain I actually think that Big Un is fairly valued if it delivers on expectations this year. I estimate that Big Un is poised to deliver a full-year cash profit of approximately $30 million in FY 2018, which I believe more than justifies its current valuation.
The LiveHire Ltd (ASX: LVH) share price has climbed an impressive 269% in 2017 thanks to a number of large client wins. The talent technology company's platform continues to grow in popularity due to the efficiencies it offers. The platform allows its users to create a pool of pre-qualified job candidates that they can access when they need to recruit. This saves recruiters both time and money.
Management estimates that the global market is worth $20 billion per annum. Considering its share price rise this year, I suspect the market will be looking for cash receipt growth that justifies its valuation in 2018. Overall, I think LiveHire will be one to watch.
