While there are many successful companies on the ASX that solely serve Australian consumers, there are huge markets to be conquered beyond the seas that girt this land.
Expanding internationally is difficult to execute but the end result of massive addressable markets can be rewarding.
With this mindset, the Firetrail small companies team revealed in a memo to clients that it's overweight on "globally exposed" growth stocks.
The three particular holdings it named are:
All three companies earn a significant amount of their revenue from outside of Australia. In Telix's case, its flagship cancer product Illucix is currently only available to the public in the United States.
The share price for the trio each went on an epic rally in July — Megaport gained 77.8%, Telix stocks rocketed 63% and Aroa was up 30.3%.
Then, frustratingly, they've all sunk since.
Helix has lost 30% since mid-August, Aroa is down 10% and Megaport is 22.4% lower now than at the end of July.
How good is it when customers stick around for 9 years
Despite this rollercoaster, Firetrail analysts are keeping the faith in the three ASX shares.
Megaport's dip is mystifying to the team as the business revealed some stunning statistics about customer behaviour during reporting season.
"This data shows that a Megaport customer typically stays with the company for over nine years and during this time returns ~7x the initial investment," read the memo.
"On average, each customer increases spend by ~40% per annum!"
The Motley Fool's James Mickleboro reported this month that Goldman Sachs is also a fan of Megaport.
"The broker believes Megaport is well-placed for strong long term growth thanks to its product leadership in the rapidly growing network as a service/SD-WAN addressable markets."
The investment house has a price target of $10.30 on Megaport shares, which is a tidy 32% premium on current levels.
US sales 'ahead of market expectations'
For Telix, the Firetrail team thought the market might have been scared off from the company's reporting season update.
"Commercial sales of Illucix, Telix's prostate cancer imaging drug, in the US continue to ramp ahead of market expectations," read the memo.
"However, the investment Telix is making in its clinical trial pipeline, as well as sales and marketing to support the launch of Illucix, surprised to the downside."
Earlier this month BW Equities equities salesperson Tom Bleakley also named Telix shares as a buy.
"Initial sales of Illuccix have been strong since the first commercial dose was administered on April 14, 2022," he said.
"Telix is progressing nuclear medicine trials for therapy of late stage prostate cancers."
