Five microcap shares to watch in 2024
By Dale Gillham
Biotech and renewables dominated discussions at the 13th annual Microcap Conference this week.
Other highlights of the conference, held in Melbourne, included areas like cybersecurity and AI hardware.
Before diving into my top stock picks from the conference, I was struck by the candour shown by many CEOs and company leaders.
Instead of the usual "everything is great" pitch, some acknowledged that, in hindsight, listing their companies on the market might have been premature.
This honest approach added a layer of credibility to their presentations.
Admitting such insights to potential investors shows leadership willing to self-assess and adapt-qualities essential for navigating the demands of a public listing.
After all, the pressure to grow can often hinder companies still developing their research and development foundation.
Which companies have improved since last year?
It was also nice to see familiar names like AllTech, Hazer, and Raiz make significant progress since last year.
Raiz, for instance, turned around its 2023 financial year performance to deliver a positive earnings before interest, taxes, depreciation and amortisation (EBITDA) of $1.3 million, up from a $2.4 million loss.
Hazer continued to impress, especially with patent progress in reactor control systems technology.
What is a microcap?
Microcaps are companies with a market capitalisation of less than $500 million that are listed on the Australian stock exchange (ASX).
They can be faster-growing and more innovative than large cap companies.
What are the top five microcaps on the ASX?
Now, let's get to the real highlights: here are my top five microcap stocks to watch:
SKS Technologies Group Limited (ASX: SKS)
SKS Technologies designs and installs tech solutions that enhance interactive spaces, focusing heavily on data centers-a market projected to reach $26 billion by 2030.
While expanding in data centers, SKS also boosted revenue in its traditional business by 26% this year, showcasing strategic growth across segments.
Despite a 450% share price increase in 2024, sellers have been unable to push the share price significantly lower with a strong rebound in September this year.
So, with the message clear that this is now a buyers' market, watch for a break above $1.60, as this would signal further upside potential to $2.00.

Intelligent Monitoring Group Limited (ASX)
IMB specializes in security and monitoring across Australia and New Zealand.
In 2024, they acquired ADT Security and Adeva Security, positioning themselves as the only true national provider for large-scale clients.
IMB's share price has consistently risen without euphoria, presenting a rare opportunity for early entry.
A move above 82 cents could confirm a buying opportunity, with volume also signaling strong liquidity for safer trading.

Argenica Therapeutics Limited (ASX)
Argenica Therapeutics develops neuroprotective treatments for brain injuries, focusing on an area where no current drugs provide brain protection during a stroke.
With the Phase 2 ARG-007 trial ongoing, nearly half of the patients have been dosed with results expected by mid-2025 which could be the catalyst for significant price movement, especially with shares already trending positively.
Currently the price is bouncing up from 66 cents, a level which has acted as strong resistance in the past.
This signifies that the historical price barriers no longer apply and if the stock can get through 84 cents, it has potential to retest the dollar level in the near term.

Rocket DNA Limited (ASX: RKT)
Rocket DNA offers drone-based data services powered by proprietary AI, with applications in sectors from law enforcement to mining.
The company's tech is gaining traction with WA Police and in autonomous patrols for mining, demonstrating its broad applicability.
Though currently illiquid with shares under 2 cents, recent accumulation could signal an impending expansion phase if the price breaks above 2 cents.

Syntara RG (ASX:SNT)
Syntara is in Phase 2 trials for treatments targeting blood cancers and inflammatory conditions.
With multiple study results expected by mid-2025, there's a potential for positive news flows to drive the stock upward.
News catalysts are vital for stocks in the microcap space to provide positive price volatility and so knowing multiple are due next year provides potential investors with clarity on when they could expect a return.
Currently the stock is showing signs of buying after years of decline, which could lead to entry opportunities once it tests recent lows and breaks back above 8 cents.

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