Hot Small Cap Picks For 2011, and They're Not Resources
It's the ASX Small Industrials Index that brokers expect to outperform both their resources counterparts and larger peers this year.
M2 Telecommunications Group (MTU): Included among myriad catalysts for this telco provider of retail fixed-line, mobile and data services in 2011 is ACCCs decision to reduce fixed line monthly rentals. Net profit is expected to jump from $16.2 million in 2010 to $22.9 million and $25.9 million in 2011 and 2012 respectively. The business model requires little capex plus few fixed assets, and owns valuable well recognised brands among its key target market of small and medium businesses. Munro expects it to be a net beneficiary of NBN.
MTU Price at posting:
$3.01 Sentiment: Hold Disclosure: Held
