Here are 4 fast growing ASX stocks to buy from leading microcap fund

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The Perennial Value Microcap Opportunities Trust has gained 42 per cent over the past 12 months, easily out-performing the 20 per cent rise in its benchmark ASX Small Ordinaries Accumulation Index.

Writing in its September 2018 monthly report, portfolio managers Andrew Smith and Sam Berridge said although valuations are stretched in most sectors of the market, given the scale of the investable universe in microcaps, they have still been able to assemble a portfolio with attractive valuation characteristics.

Here are 4 ASX small cap stocks the fund bought or added to in the month of September.

The Midway Limited (ASX:MWY) share price has gained 32 per cent in the last 12 months.

It is a leading company in the Australia forestry sector, primarily involved in the production and export of high quality wood fibre to producers of pulp, paper and associated products in China and Japan.

The Perennial Value Microcap Opportunities Trust said Medway provides exposure to Asian paper demand and earnings leverage to a falling Aussie dollar.

The Trust also added gold producer Silver Lake Resources (ASX:SLR) shares to its portfolio, saying the company has built a $105 million net cash position under current management, and has a falling cost outlook.

Calix Limited (ASX:CXL) shares fell 10 per cent in September, with the Trust saying the shares were sold off in anticipation of a tranche of stock being released from escrow, which the Trust bid for.

Calix is a multi-award-winning Australian technology company that is developing new processes and materials to solve global challenges.

The core technology is a world-first, patented kiln built in Bacchus Marsh, Victoria that produces mineral honeycomb, which are very highly active minerals.

Calix uses these minerals, which are safe and environmentally friendly, to improve waste water treatment and phosphate removal, help protect sewer assets from corrosion, and help improve food production from aquaculture and agriculture with reduced antibiotic, fungicide, and pesticide use.

Calix commenced trading on the ASX on July 20 this year following an oversubscribed
$8 million raising at $0.53 per share.

The Veris Limited (ASX:VRS) share price drifted lower in September despite solid director buying, including the vendor of a recently acquired business. The Trust said it continued to add to its position in Veris shares.

Veris is a national professional services business offering surveying, professional and
advisory and geospatial services.

In late August it reported revenue jumped 45 per cent higher and an almost doubling in earnings. The company is a play on east coast infrastructure spend. 

Here’s how you can strike it rich in the share market

The best way to strike it rich in the share market is to buy shares that are not only cheap, but growing quickly.

Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018.

Best of all, the report is absolutely free, exclusively for readers of The Capital Club.

In this comprehensive free report, you’ll find the name of one ASX gold stock that’s not only profitable, but trading at less than 4 times forecast profits.

You’ll also discover the name of a company one fund manager has called the cheapest stock in the ASX 100, and you’ll read about the three catalysts that could push the share price higher in the next six months.

Finally, the report names one of the cheapest retailers trading on the ASX, a company that just picked up the assets of a distressed competitor on the cheap, paying just 2 times earnings. No wonder one top fund manager thinks its share price could at least double.

With the share prices of each of these 3 companies having the potential to double or more, you’ll want to act now. Simply click here or the button below, enter your email address, and this free report will be instantly sent to you.

See the 3 stocks

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Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
Bruce Jackson has 30 years of hands on investing experience. He is passionate about stock market investing, running his own portfolio and SMSF. His focus is on small cap growth stocks. You can contact Bruce at brucej@thecapitalclub.com.au