The year is nearly over, so I think it’s time to look back at some of the shares that could be called shares of the year.
However, these are my three picks:
BWX Limited (ASX: BWX)
Why it’s one of my shares of the year: Over the past year it has risen about 200%. But the reason it’s one of my shares of the year is that as Warren Buffett said “turnarounds seldom turn”, but BWX has turned.
BWX seems to be on track to finally capitalise on its international acquisitions and hopefully create some good operational synergies. The natural beauty business is seeing growth in the US with continuing Sukin growth in Australia.
Further international expansion and profit margin expansion could mean that 2020 is another a good year.
City Chic Collective Ltd (ASX: CCX)
Why it’s one of my shares of the year: Over the past year City Chic’s share price has gone up by around 150%. But the reason it’s one of my best shares of the year is that it’s one of the few ASX retailers that’s going strongly, it’s growing online and growing internationally.
You wouldn’t think that selling off most of your business would lead to strong growth, but it has for City Chic. In FY19 City Chic achieved comparative sales growth of 12.2%, 44% of its total sales came from online and 20% of its sales came from the northern hemisphere.
Bubs Australia Ltd (ASX: BUB)
Why it’s one of my shares of the year: The Bubs share price has grown around 115% over the past year. The reason why it’s one of my shares of the year is how much it has improved its operational capability.
2019 has been a great year for the infant formula company. It reported its FY19 result showing gross revenue was up 154% to $46.8 million and China net revenue went up more than 200%.
Acquisitions have boosted its position considerably. It’s the goat dairy market leader with exclusive access to Australia’s largest goat milk pool – it produces 65% of all Australian goat milk products. It has 100% ownership of a CNCA certified infant formula canning facility. It has a joint venture with Beingmate, driving China channel expansion and regulatory framework. It has partnerships with Chemist Warehouse and Alibaba’s Tmall, it also has partnerships with leading nutritional manufacturers. There’s a lot to like about Bubs, it has been a transformational year.
Each of these businesses have achieved a lot during 2019, I think what Bubs has achieved is the most impressive and that’s the one I would want to buy today for the next few years.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BWX Limited. The Motley Fool Australia has recommended BUBS AUST FPO. 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.