Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

3 small ASX shares I’d buy today

Today I'll be sharing three small companies under $1 billion from my watchlist that I would purchase today. 

Today I’ll be sharing three small Australian companies that I would buy today.

All three sit on my watchlist and have a market capitalisation of under $1 billion. Let’s dive in!

1. Aussie Broadband Ltd (ASX: ABB)

Aussie Broadband is a retail service provider of internet, mobile and VOIP plans based in Morwell, Victoria. The company’s bread and butter is reselling NBN subscription plans to households.

Retail telecommunications is a low margin business crowded with many competitors. Aussie Broadband differentiates itself from peers by lasering in on the customer experience through its locally based call centre and proprietary billing software.

As a result, the company has the most satisfied broadband customers in Australia and industry-leading churn rates.

Currently, the business only has a 4% market share, however is taking 16% of all new NBN connections.

If the business can retain its leading service levels, I think it has a long runway of growth ahead.

For more Aussie Broadband check out my bull case here.

2. EROAD Ltd (ASX: ERD)

EROAD is a New Zealand based telematics company. Essentially the business provides hardware and software solutions to ensure regulatory compliance, improve driver safety and reduce costs for vehicle fleets.

The company is the market leader in New Zealand and is looking to take its success into new markets in Australia and the US.

Current CEO Steven Newman is aligned with shareholders interests. He owns 13,067,936 shares equal to about 16% of the company.

Additionally, EROAD recently made a strategic acquisition of Coretex, which will accelerate growth in its new markets.

Check out the other reasons why I like EROAD in more detail here.

3. Australian Ethical Investment Limited (ASX: AEF)

Australian Ethical is a fund manager offering ethical superannuation and managed fund products.

Whether or not ethical investing is your cup of tea, there is no denying the industry movement towards placing greater importance on ethical, social and governance (ESG) factors.

The company currently has $6.07 billion in funds under management (FUM). This is a 50% increase over the past year.

Profit growth in the past has been subdued, largely as a result of the company lowering its management fees on its products while FUM increased.

As fee-cutting moderates, the inherent operating leverage should kick in and profits begin to flow.

Australian Ethical also has extremely favourable customer demographics. 72% of members are less than 44 years of age or younger compared to the industry of 40%.

As customers age, wages will likely increase and compulsory superannuation contributions rise.

Catch the full write up of Australian Ethical here.

Final thoughts

I currently own EROAD shares and of the three companies, this would be the one I buy first.

Next in line would be Aussie Broadband and then Australian Ethical last due to relatively high valuation.

All three could be long-term winners and I’m looking to actively add each of them.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Lachlan owns shares in EROAD.
Skip to content