Each month independent research house Equity Story outlines three ASX small caps that look promising.

Last month the experts came up with Lynas, Smart Parking and Buddy.

Lynas (ASX:LYC) finished up 25 per cent (from the date of publication to the market close last Thursday).

Buddy (ASX:BUD) was up 2.6 per cent. Equity story says the stock is still a buying opportunity this month.

Smart Parking (ASX:SPZ) had the greatest gains of the March picks, finishing the month up 53 per cent.

Here are Equity Story’s three favourite ASX small or mid cap picks for April (in no particular order).

Champion Iron (ASX:CIA)

Sector: Materials

Profile: Champion Iron is an iron ore exploration and development company with major projects in the southern Labrador Trough, Canada’s largest iron ore-producing region.

Champion, through its wholl-owned subsidiary Champion Iron Mines Limited, is developing eight iron-rich projects in a 707 sq km area.

Why Equity Story likes it:

Fundamentals: The first shipment is away which is another box ticked for this incredible story which picked up an iron ore asset in Canada for spare change.

If the management execute successfully and their assumptions are proven to be correct with costs, this could easily go for a mighty run. The next catalyst will be the quarterly which should show first cashflows.

Technicals: CIA had been trending beautifully, predictably bouncing on or around its 20x day moving average on weekly chart going back to May last year.

It has recently pulled back to and has held its 40x day moving average. We feel the confirmation of costs could light the fuse on this one.

Praemium Limited (ASX:PPS)

Sector: Software & Services

Profile:  Praemium is a company involved in the provision of investment administration, Separately Managed Account and financial planning technology platforms.

Praemium administers more than 300,000 investor accounts covering about $80 billion in funds globally, and provides services to some 700 financial institutions and intermediaries.

Why Equity Story likes it:

Fundamentals: Recent growth both here and overseas has been strong, and we expect another positive update in April.

We are picking this story as it has had a significant pullback on the back of recent market volatility. The Praemium brand is becoming ever more popular with development and evolution of the SMSF, and other functionalities.

Technicals: After going on a recent tear and reaching highs of 85.5c PPS has had a solid pull back breaking the 20x day moving average on a weekly chart.

Right now it is holding right on the 40x day moving average at 59c. If good news is on the horizon there is plenty of blue sky between here and the recent highs.

Freedom Foods Group Limited (ASX:FNP)

Sector: Food, beverages & Tobacco

Profile: Freedom Foods is a diversified food company operating in the Health and Wellness sector through a range of brand including Freedom Foods, a2 milk, So Natural, Australia’s Own, Paramount and Brunswick. FNP is organised into segments which is Freedom foods, Seafood, Pactum Australia.

Why Equity Story likes it:

Fundamentals: Story on the up in a growth sector, with FNP raising good money to enable significant growth over the next few years.

We like the strategy and are backing management to successfully execute to become a global food player on the back strong brands and exciting products in the health/nutrition sector.

 Freedom has been in a strong uptrend since September last year, spending most of that time above short term moving averages on a weekly chart.

It has recently re-tested the 20x day moving average and has since bounced beautifully.


For the past five years the investment team at Equity Story has provided independent online trading advice to thousands of investors, providing them with direct buy and sell recommendations. To date, clients have received 400+ closed recommendations.

They are also the research team behind boutique wholesale fund manager – Edison Capital.


This advice has been prepared without taking into account your objectives, financial situation or needs. You should, therefore, consider the appropriateness of the advice, in light of your own objectives, financial situation or needs, before acting on the advice.

If this advice relates to the acquisition, or possible acquisition, of a particular financial product, the recipient should obtain a disclosure document, a Product Disclosure Statement or an offer document (PDS) relating to the product and consider the PDS before making any decision about whether to acquire the product.