Yowies in Brisbane, page-26

From Motley

3 bargain small-cap stocks I’ve bought

If you’re looking to add a little more oomph to your share portfolio returns, I highly recommend you try your hand at small-cap stocks.

While small caps may be significantly more volatile than their larger counterparts, the returns arguably compensate investors for the added temperament required to successfully invest at the smaller end of town.

But where do I start?

Here are three small caps that may be worthy additions to your share portfolio today.

2. Yowie Group Ltd (ASX: YOW)

Yowie is the name behind the once very popular children’s chocolate brand which encapsulated toys and was offered throughout Australia and New Zealand until 2005. Yowie Group is the property rights owner to the brand. However, the best thing about Yowie Group is that it has exclusive access to the giant US market thanks to regulation that precludes major competitors from offering toys inside chocolates since they can be a choking hazard.

The $177 million Yowie Group does not offer dividends and is not yet a profitable business; however, a nation-wide rollout of its products to Walmart stores bodes well for significant increases in revenue and – eventually – profitability.