3 stocks to shoot the lights out in 2015

Onthehouse Holdings Ltd (ASX:OTH), Acrux Limited (ASX:ACR) and Select Harvests Limited (ASX:SHV) may surprise in 2015.

| More on:
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

If you're chasing big returns in the stock market you need to be prepared to take on more risk and identify the popular companies of tomorrow not today. While it's likely some of 2014's top performers will carry the momentum into 2015 the best returns may be found elsewhere.

With risk comes reward and more speculative investments should only ever form a small part of a balanced portfolio. It's ok to chase big returns but don't give into the temptation to put all your eggs in one high-risk basket. This is a dumb investment strategy quite unnecessary given the potential to achieve solid returns by buying the best large-cap dividend-paying businesses.

That said here are three stocks that could give your portfolio a big boost in 2015.

Onthehouse Holdings Ltd (ASX: OTH) is a junior property website with some blue sky potential if able to deliver on its central challenge of gaining market share from its two main rivals operated by Rea Group Limited (ASX: REA) and Fairfax Media Limited (ASX: FXJ).

The group already operates a successful data and software service business for real estate agents, but it's the consumer division which is in an investment phase that holds the most potential. The group is aiming to build a next generation property data website to attract users and eventually create a network effect. It looks a high risk but high return investment if able to implement its vision.

Acrux Limited (ASX: ACR) is another speculative investment in the biotech space that may be offering good value with shares selling at $1.24 today. As a manufacturer of testosterone therapy sold predominately in the US market Acrux has faced a number of headwinds in 2014.

Sales of its key Axiron product have been affected by health concerns and potential regulatory interference over guidelines for prescription. The business has also faced considerable pressure from short sellers and poor sentiment. If Acrux is able to ride out the regulatory storm and return Axiron to sales growth in 2015 then it should be a rewarding year for today's investors.

Select Harvests Limited (ASX: SHV) is an almond growing business with profits heavily leveraged to the price received for its key product the world's most popular nut. Currently selling for $6.39 Select looks good value trading on a price-earnings ratio of 10 based on analysts' forecasts for 2015's earnings per share.

Notably two different directors in the business bought around $85,000 worth of shares in the business recently at not much below today's prices. Select Harvests also has plenty of potential to grow organically and through acquisitions, while cutting costs.

The recent Australia-China free trade deal also improves Select Harvests' competitive position against current suppliers to the world's second largest import market in China. The majority of China's and the world's almonds are currently supplied from California, USA. However, this is a farming region currently facing an epic drought with no end in sight for now. If this status quo does not change soon enough almond prices are likely to continue to be well supported into the future.

Motley Fool contributor Tom Richardson owns shares in OntheHouse and Acrux. You can find him on Twitter @tommyr345

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 »