3 speculative stocks you should know

Liquefied Natural Gas Limited (ASX:LNG), Australian Bauxite Ltd (ASX:ABX) and Nearmap Ltd (ASX:NEA) have sky-high growth potential, but do they offer value to investors?

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Here are three companies that I think offer some spectacular growth prospects at cheap prices. As always, investors must be aware that their small cap status means significant risk is attached to these companies. Therefore, portfolios must be balanced with the right mix of lower-risk blue-chips as well.

1. Perth-based company Liquefied Natural Gas Limited (ASX: LNG) has been the ASX's standout stock in 2014, growing a whopping 1,691% in the past year. Liquefied Natural Gas owns ground breaking technology known as Optimised Single Mixed Refrigerant which is used to improve its liquefaction techniques. The company is developing the Magnolia LNG facility in Louisiana, aiming to build an 8 million tonne per annum LNG liquefaction facility. Given its outstanding gains, investors may shy away from Liquefied Natural Gas, but I think this is just the beginning of a long run of quality growth.

2. Junior bauxite explorer Australian Bauxite Ltd (ASX: ABX) may only have a market capitalisation of $31 million, but it's jam-packed with some explosive growth potential. The company has recently been granted its first Tasmanian mining lease at its Bald Hill project. The lease will see Australian Bauxite producing about 1.5 million tonnes of aluminium oxide which will be exported from Bell Ray. The lease is a major stepping stone for Australian Bauxite as it increases its exposure to the lucrative Bauxite market. In an industry where demand is rising and supply is shrinking, I think Australian Bauxite deserves a place on your watchlist.

3. Nearmap Ltd (ASX: NEA) is a provider of geospatial map technologies for business, enterprise, and government customers. In its recent FY14 report, Nearmap lifted its $1 million loss to a staggering $7.1 million maiden profit. What really caught my attention however was Nearmap's recent series of test flights in the US, where it is aiming to replicate its Australian success. Although US expansion may seem risky, it's important to appreciate Nearmap's healthy balance sheet. Nearmap holds an impressive $23.3 million of cash and no debt, providing it with that extra cushion in case things don't turn out as planned. Despite trading on a relatively hefty price-to-earnings ratio of 28, I think Nearmap's growth prospects have the ability to provide investors with more future gains.

Motley Fool contributor Aryan Norozi does not own shares in any of the companies mentioned in this article.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »