3 companies positioned to win big in 2018

Here’s why I’m watching Senex Energy Ltd (ASX:SXY) and Ellex Medical Lasers Limited (ASX:ELX) in 2018.

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It’s nearly December. Can you believe that?

There are Christmas decorations in the supermarkets already.

I think that makes now the perfect time to position for the coming 12 months. Get rid of the losers from your portfolio and look for companies with great long-term prospects.

I’ve been having an early look, and here are three companies I think are on track to win big in the year ahead.

Senex Energy Ltd (ASX: SXY)

Although I sold my shares in oil and gas producer Senex Energy Ltd (ASX: SXY) earlier this year, I think the company has strong momentum to win in 2018.

Senex has kept its head down in 2017 to focus on the early development phase of its significant Western Surat Gas Project. The work will accelerate gas production throughout 2018 and feed gas to the Santos Ltd (ASX: STO) lead GLNG export project.

Senex was also awarded an additional 58 square kilometres of Surat Basin acreage during the year to develop gas to supply to the depleted east coast gas market. This is targeted for supply in 2019, and enables Senex to materially expand its gas business.

Supported by increased capital spending Senex Energy is forecasting FY18 production growth of up to 20% which, combined with further reserve growth and a boost to the price of oil, puts Senex on a great footing for the year ahead.

Ellex Medical Lasers Limited (ASX: ELX)

Laser and eye health manufacturer Ellex raised capital this year to give the company the arsenal it needs to support aggressive growth in 2018.

Eye health is a rapidly growing market as populations age and Ellex has been seeing especially strong sales growth of its glaucoma treatment device iTrack in the U.S.

The product only made up 11.4% of total revenue in the 2017 year, but sales were up 35% on the prior year and with a significant potential market the product is dominating the company’s efforts.

In the three months to September 2017 iTrack unit sales in the USA continued to accelerate, up 74%.

I’m putting Ellex at the top of my watch list for 2018 and think it has a big potential.

PUSHPAY FPO NZX (ASX: PPH)

Pushpay is a rapidly growing tech company which is helping to digitise the process of giving to churches and charities.

The company is capitalising on its first mover advantage in the mobile giving market and is targeting US$100 million of Annualised Monthly Committed Revenue by 31 December 2017, growth of 73% in 12 months.

The company does not currently produce a profit, but has cash on hand to support continued agressive sales momentum into 2018.

When it comes to commanding a specific niche I think Pushpay is certainly on the right track for a big 2018. However I also think this young, rapidly growing company has excellent prospects for the year ahead.

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*Returns as of January 12th 2022

Motley Fool contributor Regan Pearson owns shares of PUSHPAY FPO NZX. The Motley Fool Australia owns shares of PUSHPAY FPO NZX. You can follow him on Twitter @Regan_Invests. 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.

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