Forget blue-chip stocks like Commonwealth Bank of Australia (ASX: CBA) and BHP Billiton Limited (ASX: BHP), one of the next five stocks is up over 900% in just two years. Talk about beating the market!
However, the good news is, I believe each could well go higher in the next five years and I have personally begun positioning my portfolio to benefit. Perhaps you should too!
1. Rubik Financial Limited (ASX: RFL) is currently one of the hottest stocks on the ASX. It currently has a P/E ratio of 330! Rubik provides banking systems and an integrated technology platform to institutions globally. Anyone who’s ever worked in finance will know just how important software products such as COIN are. With EBITDA set to more than double in 2014, it could prove to be a great long-term buy and hold.
2. Money3 Corporation (ASX: MNY) provides short-term loans and financial services to customers visiting its growing number of stores along the eastern seaboard of Australia. In the nine months to March 2014, earned income from secured and unsecured loans grew 118% and 66%, respectively. It’s no wonder analysts are forecasting earnings per share to grow by more than 70% in the next two years. Despite high expectations, it trades on a P/E ratio of just 18 and a dividend yield of 3.8% fully franked.
3. LNG Limited (ASX: LNG) is, as the name suggests, involved in the liquefied natural gas industry. However, it could best be described as a speculative buy because it isn’t yet producing any meaningful earnings. Its flagship Magnolia LNG liquefaction project in Lake Charles, Louisiana has plans to produce 8 million tonnes of LNG per annum. Currently management are hoping to get all the necessary approvals and bankable contracts completed before financial close in mid-2015. Since I made it my top stock for March, it’s up 230%.
4. Vita Life Sciences Limited (ASX: VSC) is a pharmaceutical and healthcare company involved in formulating, packaging and distributing vitamins and supplements throughout Australia and Asia. Australian markets account for only 40% of revenues and the company sees big possibilities from Asian markets such as Indonesia. In the 2013 full year, profit after tax jumped 105% and prompted management to forecast sales growth of between 13% and 15% in 2014, with an EBIT margin of 14% to 16%.
5. Nearmap Ltd (ASX: NEA) has been the standout performer over the past two years. Up over 900%, it provides aerial maps for business, similar to Google Maps but clearer and more frequently updated. The company has recently begun a move in the US where it has already started test flights. Today, it announced an update to “property intelligence tools” which allows users like Real Estate agents to find information on properties by simply clicking on the map with a mouse. Applications such as these help grow revenues and earnings significantly in the long-term.
Nearmap shareholders have gained over 900% in just two years! With a significant amount invested, it’s easy to see how the stock market can change your life for the better. To make those types of gains you have to identify companies which have solid balance sheets and strong management.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
Motley Fool Contributor Owen Raszkiewicz owns shares in LNG Limited.
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