Small caps outperform the All Ordinaries Index in 2015

Published at Oct 20, 2015, in Equities

Here’s an interesting fact: if you had invested $10,000 in each of the 24 companies that presented at last year’s Annual Microcap Investment Conference, your portfolio value would have increased from $240,000 to $295,000 – a gain of $55,000. In addition you would have received $1k of dividends for a total return of 7.9%.

In that same time, the All Ordinaries posted a loss of 4.4%.

Canny investment in the small cap market clearly has its rewards.

With the 6th Annual Australian Microcap Investment Conference beginning today in Melbourne, it will be interesting to see if performance levels dip or rise.

Organised by corporate advisory firm DH Flinders Pty Limited, the Conference is Australia’s largest and most comprehensive microcap investment event, showcasing the services, products, strategies and people driving today’s growth companies.

Executive Director of DH Flinders, Craig Dunstan, said:

“Microcap companies provide access to many niche industry sectors, as well as emerging technologies and business areas that are sometimes overlooked by larger companies. As investment markets begin to recover, many smaller ASX listed companies are well placed to capitalise on growth opportunities.

“At last year’s conference we had 24 listed companies present. Over the past year to 30 September 2015 six of those companies have been standout performers with returns of over 40%. Leaf Resources share price increased by 43%, IDT Australia’s by 78 %, Blue Sky Alternative Investments by 99%, Viralytics by 107%, and AMA Group by 203%.”

Presenting at this year’s Conference are companies that include one of Australia’s largest alternative investment managers’ Blue Sky Alternative Investments, along with fellow financial services groups HUB24 and Centrepoint Alliance. Also on the list are vehicle after-care and accessories group AMA Group, and Dubber Corporation, Aeeris, Melbourne IT and Knosys representing small caps in the IT space.

An interesting inclusion is Dyesol. Dyesol is a renewable energy supplier and leader in Perovskite Solar Cell (PSC) technology – 3rd generation photovoltaic technology that can be applied to glass, metal, polymers or cement.

There are big things expected of this company as it sets to challenge conventional notions of energy consumption.

In fact it has just signed a funding agreement with the Australian Renewable Energy Agency (ARENA) to progress its PSC technology.

DYE’s third generation PSC

The Microcap Conference sees itself as a conduit to facilitate the challenging communication process between a company and its stakeholders.

“The Microcap Conference provides investors with an opportunity to hear firsthand from the CEOs of 25 of Australia’s leading and dynamic microcap companies, from a varied range of sectors, as they showcase their companies, strategies and people.

“We are delighted to have secured 25 outstanding ASX listed companies to present as well as key note presentations from Paul Hannan of BT Investment Management and Richard Hemming from Under the Radar Report,” said Dunstan.

“This year we have over 400 professional investors, stockbrokers and financial advisers registered to attend. The microcap sector is generating greater interest each year as investors realise the gains to be made by investing in smaller companies.”

Australia’s leading group of emerging ASX listed companies to showcase at this year’s Conference are:

Capital Goods

  • Quickstep Holdings Limited (QHL) Philippe Odouard, Managing Director
  • Matrix Composites & Engineering Limited (MCE) Aaron Begley, Managing Director

Commercial Services & Supplies

  • CML Group Limited (CGR) Daniel Riley, Managing Director
  • CV Check Limited (CV1) Rod Sherwood, Chief Financial officer
  • Inturi Education Limited (IQE) Robert Facer, Chief Executive Officer
  • Micro-X Limited Peter Rowland, Managing Director

Diversified Financials

  • Blue Sky Alternative Investments Limited (BLA) Mark Sowerby, Managing Director
  • Australian Ethical Investment Limited (AEF) Phillip Vernon, Managing Director
  • Centrepoint Alliance Limited (CAF) John de Zwart, Managing Director
  • Hub24 Limited (HUB) Andrew Alcock, Managing Director

Energy

  • Dyesol Limited (DYE) Richard Caldwell, Managing Director
  • Leaf Resources Ltd (LER) Ken Richards, Managing Director
  • Green Earth Energy Limited (GER) Samuel Marks, Managing Director

Healthcare Equipment & Services

  • Anteo Diagnostics Limited (ADO) Dr Geoff Cumming, Chief Executive Officer

Pharmaceuticals & Biotechnology

  • IDT Australia Limited (IDT) Dr Paul MacLeman, Managing Director
  • Actinogen Limited (ACW) Dr Bill Ketelbey, Managing Director
  • Genera Biosystems (GBI) Richard Hanneberry, Executive Director
  • Genetic Signatures (GSS) Dr John Melki, Chief Executive Officer

Retailing

  • AMA Group Limited (AMA) Raymond Malone, Executive Chairman

Software & Services

  • Aeeris Limited (AER) Kerry Plowright, Chief Executive Officer
  • Melbourne IT Limited (MLB) Martin Mercer, Chief Executive Officer
  • Dubber Corporation Limited (DUB) Steve McGovern, Executive Director
  • PS&C Limited (PSZ) Kevin McLaine, Managing Director
  • YPB Group (YPB) John Houston, Executive Chairman
  • Knosys Limited (KNO) Gavin Campion, Executive Director

Utilities

  • Geodynamics Limited (GDY) Geoff Ward, Chief Executive Officer

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

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S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

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