Due to recent market volatility the Australian share market has made only a small gain over the last 12 months.
The good news is that this hasn’t been able to hold back all shares on the local market. In fact, a few shares have managed to more than double in value during this time. Is it too late to snap up these shares?
The Bravura Solutions Ltd (ASX: BVS) share price has rocketed 156% over the last 12 months. Investors have been fighting to get hold of the shares of the fast-growing provider of software solutions for the wealth management, life insurance, and funds administration industries following a strong performance in FY 2018. Bravura’s Sonata wealth management platform was a key driver of growth for the company during the year and now contributes 55% of total company revenue. I think Sonata has a lot of potential and expect its strong form to continue over the coming years. This could make Bravura worth considering even after its sizeable share price gain.
The Cann Group Ltd (ASX: CAN) share price is up a remarkable 111% since this time last year. The medicinal cannabis company’s shares have been on fire this year thanks largely to the Federal Government’s decision to allow exports of medicinal cannabis. Due to Cann’s sizeable growing facilities and expertise, many expect the company to benefit more than most from the regulation changes. In addition to this, earlier this year the company revealed that it was talking to Aurora Cannabis about a potential takeover. Nothing appears to have come of these talks, though. While medicinal cannabis could potentially have a bright future in Australia, there’s no guarantee that it will and it could take many years if it does. I’d suggest investors watch on from the safety of the sidelines.
The Jumbo Interactive Ltd (ASX: JIN) share price is up a massive 166% over the last 12 months. The lottery seller’s shares have been on fire after it posted an impressive result in FY 2018 and provided positive guidance for the year ahead. Jumbo delivered a 55% increase in net profit after tax from continuing operation to $11.8 million in FY 2018 thanks to a jump in new customers and average spend. This strong form looks set to be carried over into FY 2019 after a strong start to the year. In August management provided revenue guidance of 20% to 21% this year. Earnings are expected to grow at an even quicker rate thanks to its widening margins driven by operating leverage, its continued improvement in efficiencies, and its focus on cost management. Although I do like Jumbo, I think its shares are about fair value now and a hold.
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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 Bravura Solutions 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.