Not all shares have the potential to deliver high growth returns. Hunting for Multibaggers comes with higher risk and failure can result in losing everything. But when a plan comes together the upside potential / growth returns are often astonishing. Here’s the last 3 to 4 years action…
From 2009 – 2012, the following top 20 TheShareHub “heads up’ tips.
1. GKP – E&P. Tipped in ’09 at 10p, reached 450p. Return = 45 bagger!
2. QED – Property. Tipped in ’09 at 8p, reached 240p. Return = 30 bagger!
3. MXP – E&P. Tipped in ’09 at 2p, reached 34p. Return = 17 bagger!
4. MNR – Property. Tipped in ’09 at 9p, reached 130p. Return = 14 bagger!
5. XEL – Oil Explorer. Tipped in ’09 at 40p, reached 425p. Return = 10 bagger!
6. EO.L – Oil Explorer. Tipped in ’10 at 16p, reached 143p. Return = 9 bagger!
7. KAZ – Copper. Tipped in ’09 at 200p, reached 1635p. Return = 8 bagger!
8. CAL – Property. Tipped in ’09 at 16p, reached 109p. Return = 7 bagger!
9. IAE – E&P. Tipped in ’09 at 40p, reached 196p. Return = 5 bagger!
10. MERE – Property. Tipped in ’09 at 30p, reached 145p. Return = 5 bagger!
11. NPE – E&P. Tipped in ’10 at 130p, reached 550p. Return = 4 bagger!
12. PMG – E&P. Tipped in ’10 at 11p, reached 37p. Return = 3 bagger!
13. RRL – E&P. Tipped in ’11 at 8p, reached 24p. Return = 3 bagger!
14. TIG – IT. Tipped in ’10 at 11p, reached 26p. Return = 2 bagger!
15. PCI – E&P. Tipped in ’11 at 4.75p, reached 10p. Return = 2 bagger!
16. OPHR – O&G. Tipped in ’12 at 289p, reached 648p. Return = 2 bagger!
17. BOR – E&P. Tipped in ’12 at 63.5p, reached 139p. Return = 2 bagger!
18. SQZ – E&P. Tipped in ’12 at 18.88p, reached 45p. Return = 2 bagger!
19. AFR – E&P. Tipped in ’12 at 85p, reached 162p. Return = 2 bagger!
20. SPD – Retail. Tipped in ’12 at 213p, reached 452p. Return = 2 bagger!
Many other “heads up” tips have delivered 2 baggers but have not been included in the above. The above list will be updated as/when stocks set new highs.
2009 was clearly a ‘recovery’ year and many oversold stocks were ridiculously valued – most were expected to go under. Uncertain times presented many opportunities for the smart investor but maintaining a 100% record of successes is not easy in a volatile market like 2009.
To balance off the Hall of fame – here’s a few from the Hall of Shame.
1. NEW – tipped in ’09 at 4p, reached 8p. Eventually Filed for Admin.
2. ICX – tipped in ’09 at 8p, reached 20p. Eventually Filed for Admin.
3. AZM – tipped in ’09 at 8p, reached 14p. Eventually Filed for Admin.
Not all investments bear fruits and the above shows that ‘everything’ can be lost. 2009 was a record year for companies filing for administration as lack of funding/credit squeezed many out of business.
Hi Hub,
You’ve been unusually reticent on Xcite’s recent (astonishing) reserves upgrade. Finance seems to be the key to unlocking the SP but surely it’s not going to be a problem given the recent numbers. I’m convinced that one of BP or Statoil won’t miss this opportunity to take out the whole company rather than playing a more minor role as junior partner. Would love to know your thoughts?
thanks
Ed
Hi Ed,
The increase in reserves will undoubtedly please the bankers on the RBL but until XEL management confirm their chosen farm out partner – their interests will remain unknown. The two have to be done together as you can imagine – it’s hard to secure an RBL on say 150mmboe in reserves if you then give away 50% of that reserve base in a farm out deal.
I think Rockhopper is a good example of a company that could have realised a greater share price or return to shareholders had it simply handed the keys over to a super major. Instead – the prospect of earning £XX in 2016 or 2018 etc is of little importance today in a short termism market sentiment.
The same applies to XEL to some extent as well as GKP.
Value is often lost by the bucket load as the smaller players fight to retain interests by doing farm outs and additional funding.
The real value in XEL, GKP or RKH etc lies in selling the entire biz with tax losses and all thrown in.
But you can’t secure a good deal unless you bluff your way to the final signature. I think sometimes management gets carried away and believe their own bluff guff – which ultimately ends up in delusional expectations. There’s still hope that a full sale can be done – but it’s going to be at the partners price imho and only a bidding war will get a decent price.
XEL were 420p+ a share after the first flow test on Bentley. Today they have almost double shares in value and have proven more oip and reserves etc. The sp is 114p. That’s almost 25% of the previous high.
It just goes to show that sometimes the dream can be worth so much more than the reality. A paradox rarely present in daily life.
I haven’t been reticent – i’ve just not seen any developments just yet that alters the investment story.
For me – selling the entire biz is where the value lies. Boosting reserves certainly enhances this prospect but i’m lacking confidence in the BoD’s to get the job done.
Lets face it – they’ve been a shambles over the last 2 years.
HUB