3 ASX small caps that could be the next Xero or A2 Milk 31...

3 ASX small caps that could be the next Xero or A2 Milk

31 October 2019






ASX small caps are the ones that could become the next Xero Limited (ASX: XRO) or A2 Milk Company Ltd (ASX: A2M).


All the current big businesses like CSL Limited (ASX: CSL) and Transurban Group (ASX: TCL) were small companies at once stage.

I think these three shares could be contenders to be the next small cap shares to reach the ASX 100:


Bubs Australia Ltd (ASX: BUB)

The goat infant formula business is following in the footsteps of its larger peers. Just today it reported is September 2019 quarter, with revenue growth of 58% to $14.2 million.


I’ve been impressed by the company’s choices over the past year. It has entered into a number of seller partnerships here and abroad which should allow for fast revenue growth. It has invested heavily in its supply chain, it owns its own CNCA certified canning facility and it is expanding its product range to include organic grass fed cow formula.


I expect Bubs’ profit margins will improve substantially over the next few years, which will boost profit faster than revneue.