The S&P/ASX 200 (Index: ^AXJO) (ASX:XJO) has managed to post a respectable gain of 2.5% for the year-to-date, but that is nothing compared to some of the gains posted by the shares below:
|Company||Market Cap*||P/E Ratio||Dividend Yield||Year-to-date Gain||5 Year Total Return|
Auscann Group Holdings Ltd (ASX: AC8)
Summit Resources Ltd (Australia) (ASX: SMM)
Macphersons Resources Ltd (ASX: MRP)
|MMJ Phytotech Ltd (ASX: MMJ)||$136 million||–||–||212%||N/A|
SKY and Space Global Ltd (ASX: SAS)
Flinders Mines Limited (ASX: FMS)
Global Geoscience Limited (ASX: GSC)
Cardinal Resources Ltd (ASX: CDV)
Champion Iron Ltd (ASX: CIA)
Iron Road Limited (ASX: IRD)
*Please note, I have excluded shares with a market capitalisation of less than $80 million.
Unfortunately, it would be very difficult to consider any of the shares listed above as investment grade material.
In fact, it is pretty clear that most investors should steer well-clear of the shares above considering that not a single company managed to turn a profit over the past year. On top of that, it is hard to envisage any of these companies as having the ability to pay out a dividend anytime soon.
Nonetheless, there are some interesting companies on that list and it is not hard to see why some traders may be interested in them.
For example, Auscann and MMJ Phytotech operate in the medical marijuana sector and perhaps have the most credible prospects of those listed on the ASX. There is no doubt that the sector could be highly lucrative, but it still remains unclear exactly how these companies will develop a long-term competitive advantage.
Uranium, cobalt, lithium, gold and iron ore miners are also represented in the list above. Cobalt and lithium shares have been particularly popular over the last few months as some analysts have forecast huge demand for these minerals as a result of the growing demand for rechargeable batteries. Unfortunately, many of these smaller players are competing against much larger competitors who are likely to bring a higher level of expertise and scale to their operations.
Finally, Sky and Space Global is an exciting company that is developing nano-satellite technology aimed at providing telecommunications services to over 4 billion people. The company has an ambitious target of rolling out around 200 satellites over a five-year time frame, but with only three satellites contracted so far, this target seems a like a universe away.
Forget speculative shares and look at these Top 3 ASX Blue Chips To Buy In 2017 instead.
For many, blue chip stocks means stability, profitability and regular dividends, often full franked..
But knowing which blue chips to buy, and when, can often be fraught with danger.
The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2017."
Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.
If you’re expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you’ll be sorely disappointed. Not only are their dividends growing at a snail’s pace, their profits are under pressure too due to the increasing competitive environment.
The contrast to these “new breed” blue chips couldn’t be greater… especially the very real prospect of significant share price gains, something that’s looking less likely from the usual blue chip suspects.
The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.
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Motley Fool contributor Christopher Georges has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.