Some of the headlines from this week (so far) include:
‘ASX to drop, US-China risks rise’ — Australian Financial Review
‘New IMF Chief Warns of “Serious Risk” Global Slowdown Will Spread’ — Bloomberg
‘At least 77 anti-mask law arrests amid Hong Kong’s “escalating vandalism”’ — South China Morning Post
‘Fed to resume asset purchases to prevent a cash crunch’ — Financial Times
‘Facebook and Google “know more about you than any spy agency”’ — The Times
Doesn’t quite make for happy reading does it?
As we’re all aware, fear sell papers. Or, in today’s online world, fear gets the clicks. You don’t often see good news permeate through the financial mainstream outlets these days.
And it’s for that reason that it’s hard not to get a little pessimistic about the state of global affairs. And when people are gloomy about global finance, it often tends to filter down through into the local markets.
Get active, it’s good for your (financial) health
Gloom and doom abroad, gloom and doom at home. It’s why there’s been an astonishing rise in ‘passive investing’ over the last half-decade. Passive investing certainly has a place for some people who want to get into the market, but from my perspective, passive investing leads to one outcome — mediocrity.
There are graduating scales of what passive exactly means. But from my view these are investors who simply seek to invest in ETFs or managed funds, and take little to no responsibility for formulating and investing their money.
Active investing has taken a backseat during this period. But active investing doesn’t have to mean trading in and out of markets with high volume and great ferocity. Active investing in my book just means taking a view and a position in a range of stocks that you choose for yourself to include in your own hand-built portfolio.
Sometimes you might hold those stocks for years to realise their full potential. Or sometimes you might cash out quick if they deliver some short sharp returns. Either way, ‘active’ investing means giving a damn and taking action where the average person is afraid to.
I think everyone that wants to really stand a chance at making a mint from the markets should be an active investor. Of course, getting and consuming all the information needed to make the right calls isn’t easy.
And that’s why we publish services like Australian Small-Cap Investigator and Exponential Stock Investor, to provide you with the kind of research you simply won’t get from the mainstream.
We do this because we’re of the view that even in times of widespread gloom and doom, there are hundreds of opportunities each year to bank returns the average investor can only dream about.
Also, most of these big wins can be found at home on the Australian Securities Exchange (ASX). It also just so happens many of them start off as small-cap companies.
But of course it’s not easy to see how good the ASX can be when you’re bombarded with fear and uncertainty in the mainstream.
That’s why we’re going to help you out. Below you’ll find a small fraction of the 127 stocks that within the last year are up over 100%.
That’s right, approximately 127 stocks on the ASX have shot up by more than 100% over the last year. There’s even more when you lower the ‘gains bar’ to something like 20%. But we’re not interested in 20%. 20% is nice, but something the mainstream would be proud of.
When we talk about opportunity in stocks we mean serious opportunity. That means chasing at least 100% gains from stocks.
Don’t believe us? Well here’s a list of just a few of the big winners in the last year…
- Kirkland Lake Gold Ltd [ASX:KLA] — trading around $26.50 in November 2018. Yesterday’s close was $70.91 — a 167% gain
- Afterpay Touch Group Ltd [ASX:APT] — trading around $11.30 in November 2018. Yesterday’s close was $34.88 — a 208% gain
- Zip Co Ltd [ASX:Z1P] — trading around 91 cents in October 2018. Yesterday’s close was $5.27 — a 479% gain
- Pro Medicus Ltd [ASX:PME] — trading around $8.89 in November 2018. Yesterday’s close was $31.12 — a 250% gain
- Jumbo Interactive Ltd [ASX:JIN] — trading around $6.85 in December 2018. Yesterday’s close was $26.49 — a 286% gain
- iSignthis Ltd [ASX:ISX] — trading around 11 cents in October 2018. Yesterday’s close was $1.07 — an 872% gain
- Electro Optic Systems Holdings Ltd [ASX:EOS] — trading around $2.30 in January 2019. Yesterday’s close was $7.54 — a 227% gain
- Phoslock Environmental Technologies Ltd [ASX:PET] — trading around 33 cents in January 2019. Yesterday’s close was $1.27 — a 284% gain
- Credible Labs Inc [ASX:CRD] — trading around 70 cents in February 2019. Yesterday’s close was $2.19 — a 212% gain
- Uniti Group Ltd [ASX:UWL] — trading around 16 cents in March 2019. Yesterday’s close was $1.38 — a 762% gain
- Data#3 Ltd [ASX:DTL] — trading around $1.44 in January 2019. Yesterday’s close was $3.11 — a 115% gain
- Bubs Australia Ltd [ASX:BUB] — trading around 44 cents in January 2019. Yesterday’s close was $1.22 — a 177% gain
- PainChek Ltd [ASX:PCK] — trading around 3 cents in April 2019. Yesterday’s close was 33 cents — a 1,000% gain
- Alcidion Group Ltd [ASX:ALC] — trading around 4 cents in March 2019. Yesterday’s close was 25 cents — a 512% gain
Now remember these are just some of the 127 stocks that in the last year have seen their 52-week percentage change greater than 100%. And as you’ll note the threshold is 100%, but most of these are around 200% and above.
You can be right, and still not get it right
There are roughly at any given time around 2,000 stocks on the ASX. That means around 6.4% are absolutely shooting the lights out for investors taking an active role in their portfolios.
That number doesn’t sound massive. But it’s huge. And you only need to own one or two of these mega market breakers to electrify your portfolio and smash the boring, mainstream, mediocre returns that passive investing delivers.
How many of these have you heard about in the mainstream…before they became massive market winners?
Sure you’ve heard about Afterpay, probably iSignthis more recently and Zip Co. Maybe one or two others. But the mainstream picks them after they’ve run up 100%, 200%, even 1,000%.
We know many of these companies intimately. We’ve known about many of them before they became triple-digit winners. We can’t say which ones as they are still active recommendations — but it’s around half of them.
Some we’ve actually sold out of in some of my publications like Electro Optic Systems and iSignthis. We sold out for big gains, but still sold out too soon.
That proves even when you get it right, it’s hard to get it perfectly right. And of course, we won’t get it right every time.
But what we know is the ASX is an absolute hunting ground for winners if you take an active approach to investing. All you have to do is get more engaged with the opportunity and potential that’s around you every day, and don’t buy into the mainstream propaganda.
Editor, Money Morning
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