[Editor’s Note: This week we are shining a light on a peculiar but powerful class of stock — the Water Bear.
This new report explains what they are and how Sam Volkering has been using them to generate blistering gains in an erratic and unpredictable market. He also shares his four top Water Bear picks for 2017. If you haven’t discovered them yet, do so here.
Starting today, though, we’d like to showcase some of Sam’s recent unbelievable Water Bear winners. Beginning with this (at-the-time, at least) little-known Aussie company that has seized on a watershed moment in the global food market…]
Water Bear Winner Showcase: Bellamy’s Australia Ltd
Water Bear Stocks are stocks with the potential to rise — and keep rising — whether the wider market is soaring or tanking.
They are stock selections calibrated for this Age of Extreme Markets.
One such company is Bellamy’s Australia Ltd.
Bellamy’s qualified as a Water Bear because it was locked into a powerful near-term trend that transcended the day-to-day goings on of the financial world: the global organic food boom.
More specifically, it was about to hit a ‘critical inflection point’ that was going to result in a very possible upward rerating of its stock price.
Its organic branded baby food was quickly winning market share from old-style competitors. And, while few spotted it at the time, the company had a unique opportunity to grow to massive scale if it could build on its toehold in Asian export markets.
In 2014 Chinese baby formula sales were starting to soar. Premium and ultra-premium segments of the baby formula market were growing at a rate of knots. And for Bellamy’s Organic it was a case of right place, right time, and right strategy.
What the company managed to do was use social media including Facebook, Twitter and Instagram to drive awareness in China and Asia.
‘Our focus on social and digital media has fostered substantial growth of an engaged online community,’ company directors Rob Wooley and Laura McBain said in the company’s recent annual report, reported by abc.net.au
‘In China we are quickly building a strong following through social media and word-of-mouth sales.’
Are they ever!
Revenue from sales in China is growing at 331% a year. In August the company reported the company reported a 322% rise in profit, from around $9 million last June to $38.3 million at the end of June this year. Bellamy’s products now sell through all of China’s major online marketplaces.
And Australian Small Cap Investigator readers got in relatively near the beginning of this massive success story…
Based in Launceston, Tasmania, Bellamy’s traded on the Australian Securities Exchange (ASX) for just $1.40 when it was first spotted by Australian Small Cap Investigator in September 2014.
It had a market cap of just $133 million.
Today it trades at $12.75, and Google puts its market cap at $1.23bn.
This is what we’re talking about with Water Bear Stocks.
INSANE potential capital appreciation, in short timeframe, despite any trials and tribulations in the global markets.
Sam Volkering didn’t quite capture the full rise of Bellamy’s. He advised his readers to take profits at $10…locking in a 575.7% gain in just 14 months.
But, as you will see if you check out his four new Water Bear picks here, Sam is pretty clinical about banking big gains before a possible reversal. Even if that means leaving a small dose of further gains on the table.
Reader Nigel wrote: ‘G’day Sam. Bellamy’s turned out to be a nice little earner… Total $108,170 or 558%. Thanks!’
Brice Sergent’s emailed, ‘What can I say? I spent $5,000 and when I sold, I received $35,420.99… I am very very pleased…’
Marcus McEwan from Tasmania writes, ‘Very nice profit and I have to say I wouldn’t have been able to do that without you small cap guys. I would not have known about Bellamy’s until they had hit the main stream by which time the buy in price would have been a lot higher than where I got in at.’
Terry Russel wrote, ‘After your sell advice I settled for a 333% profit for which I thank you kindly, the profit was equivalent to a year’s pension!’
What made Bellamy’s special? And, more importantly, what made it a Water Bear Stock?
You’ll can get a fuller picture of what Water Bear Stocks are, and what makes them uniquely fitted to the current market by clicking here.