I think that the little followed S&P/ASX Small Ordinaries (Index: ^AXSO) (ASX: XSO) is home to a good number of exciting small-cap companies with enormous growth potential.
Three which I have my eye on at the moment are listed below. Here's why I think they should be on your watchlist today:
Amaysim Australia Ltd (ASX: AYS)
I think that this growing telco company is well worth taking a closer look at due to its strong core business and its recent expansion into offering home energy plans and low-cost Amaysim-branded NBN plans. I believe these recent ventures could provide the company with significant growth in earnings if it is successful in cross-selling the services to its existing customer base. Another bonus is that its shares provide a partially franked trailing 4.6% dividend.
Collins Foods Ltd (ASX: CKF)
This KFC operator's shares have been on a bit of a slide in recent months following a weaker-than-expected half-year result which was due largely to some significant one-off charges. But with that behind it now and the company embarking on an expansion into an under-penetrated European market, I think investors ought to take another look at Collins Foods. Its shares offer a trailing fully franked 3.2% dividend at the current share price.
Tassal Group Limited (ASX: TGR)
With its shares trading just a touch above their 52-week low I think this salmon and seafood producer could be worth considering. Tassal has been investing heavily as part of its aim of becoming a world leading seafood company. I believe the company will reap the rewards of these investments in the coming years, allowing it to continue increasing its dividend. At the current share price Tassal's shares provide a generous trailing fully franked 4% dividend.
