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These 3 shares are up 400% in 12 months

Over the last 12 months the All Ordinaries (Index: ^AXAO) (ASX: XAO) has managed to carve out a solid gain of approximately 4.8% excluding dividends.

Were you to add in dividends, this return would increase to around 8.8%.

Whilst that is a decent annual return, it pales in comparison to some of the returns being made on the index.

Especially those of the three shares listed below which have climbed at least 400% over the last 12 months. Here’s why they have been on fire:

The Bubs Australia Ltd (ASX: BUB) share price is up 450% since this time last year. Investors have been fighting to get hold of the goat milk infant formula company’s shares on the belief that it could be the next A2 Milk Company Ltd (ASX: A2M). I’ve been very impressed at the progress the company has made on its distribution network over the last 12 months and can’t say I’m surprised by the share price rise. However, until its sales start to justify its sizeable market capitalisation, I intend to hold off an investment.

The Cann Group Ltd (ASX: CAN) share price has stormed 400% higher since this time last year. The medicinal cannabis company’s shares have been on a tear due partly to the loosening of regulations around exports and medical usage in Australia. Investors may believe that Cann’s enormous growing facilities have positioned it perfectly to profit from export markets. In addition to this, the company recently confirmed that it had held preliminary discussions with Canadian giant Aurora Cannabis about a potential transaction. Although no financial details were revealed and it is still at a very early stage, there is speculation that it could be at a price of $4.50 per share. This would value Cann at approximately $500 million.

The Kogan.com Ltd (ASX: KGN) share price has rocketed 450% higher over the last 12 months. The market appears to have been thoroughly impressed at the way Kogan has smashed its prospectus forecasts. Furthermore, the diversification of its business into offering mobile, internet, and insurance products has been well-received. But after such a strong share price gain, I think its shares are about fair value at 61x estimated forward earnings. I intend to wait in hope of a pullback in its share price before making a move.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Kogan.com ltd. 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 Scott Phillips.

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