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Share Picks for 2018

by dollarwise
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Here are a few of my share picks for 2018. Like everyone else I have no idea where the share market is headed in the short term. But these are some of the shares I’m keen on and own. As always this is not advice, just my thoughts. Remember to always do your own research.

Best Growth Shares
ALU

Great circuit board printer that I’ve owned for some time. It’s growing year on year as more and more electronics take over our world. This is a buy and hold investment. It’s share price has run a lot of late, but will continue to grow over the medium term. A great company.

APT

Afterpay is everywhere. A year ago you didn’t see this payment option provider. But now it’s everywhere. I’ve owned these since before it’s merger and will continue to hold. I can only see this growing massively from here.

TPM

TPG is spending big on its mobile networks in Australia and Singapore. It’s going to take 3-5 years for these investments to pay dividends, but when they do, this company will again be a market darling. A great buy and hold investment if you have a medium term outlook. Probably not a big mover in 2018, but one to buy now and put away for the future.

CGF

Challenger just keeps growing its annuity business. It’s a slow and steady growth performer that keeps going forward. Another great investment to hold.

CSL

This is a hold for lifer. A great company. It’s history speaks for itself.

BHP

BHP follows the commodity cycle which for the last few years has been headed up. So a good time to ride the wave. But you have to remember to get off when the cycle turns.

NVL

A vet owner that’s growing both organically and through acquisition. Another steady growth performer that should continue to do well and pay good dividends.

RFF

Rural funds owns properties it leases. It’s an income fund that is growing each year with stable earnings. A good stable dividend payer with ongoing growth prospects.

MLB

The IT and cloud storage sectors just keep growing and will do for some time. That makes companies like MLB great growth companies. There’s others you can add to this list like NXT.

PPS

Praemium is a fund manger. While the money is flowing companies like PPS and others (HUB, PTM) are performing really well. I expect this trend to continue.

CCP

The loans business is doing well. Just look at the chart for CCP. This should keep grinding up over 2018 and beyond.

LYC

A rare earths producer. This is riding on the electric car, battery theme. The next 5 years should support great growth at LYC.

KGN

Kogan is growing rapidly and keeps adding more and more product options. I rate their mobile offerings. Their website is great. I expect Kogan to keep heading up and up, even with Amazon on the doorstep. This could be a billion dollar plus company in the making. By the way, you can get $10 store credit if you sign up as a new customer here.

MQG

When times are good Macquarie bank just grows and grows. Now is a good time to ride the wave with Macquarie.

ALL

Aristocrat has been a steady growth performer. The gaming company has made some big acquisitions that should maintain growth in the years to come. I hate the industry it’s in though. Pokies are a society killer. I hate them and so I’m not going to invest in them personally, but they will likely do well.

High Risk, Big Return Potential

These are all high risk with the potential for huge reward. I’d expect some of these to go gangbusters and some to fail. Most will be one or the other. So be wise with your money, only allocate a percentage and make sure you have a pull out point if things don’t go well.

HZR

Hazer have created a process to make high quality graphite and hydrogen, cheaply and in an environmentally friendly way. They’ve just signed a binding agreement with Mineral Resources for graphite production that will ramp up over the next few years. That takes out some of the risk. Providing these plans go ahead and some deals are signed for the hydrogen, this has the potential to grow by many multiples of todays share price. It’s pretty cheap considering the massive potential on offer.

BUD

Buddy have made a product to measure energy use and help with efficiency. The product is being picked up around the world and has huge potential growth. Time will tell if it can execute. It’s already pretty expensive, so a degree of success is priced in already.

LVT

Livetiles is a software company that has launched into artificial intelligence and has made some deals with Microsoft to sell it’s products. It’s share price has recently taken off as a result. But if this translates into huge sales, it has huge growth potential. Again the deals it has already signed have derisked this somewhat.

LVH

Livehire just keeps growing. It’s aiming to transform the employment hiring process via its software. It’s signing up more and more clients. Again, this has the potential to grow and grow for many years to come.

LNU

Linius has produced software to make video more searchable. It has the potential to add ads into video without being blocked by ad blockers. This is where the real money is for Linius. If this tech gets picked up by the big streaming services, this company’s shares could be 20 times where they are now. That’s a big ‘if’ though.

NUH

I love this company’s in ear wireless buds, called IQbuds. The product is great and they are bringing out 2 new versions, a cheaper version for listening to music etc to compete with apple and a more expensive version to market to the partial hearing loss market. The tech is great. But who knows if they can compete and sell against the likes of apple and bose, etc. That is the question. If they can, expect massive share price appreciation. If not, it could completely fail.

Recovery Stocks
MUA

Mitula basically make money from website visits. There share price tanked after a glitch left the companies earnings in tatters. It has since reaffirmed it’s business as usual. Provided this is the case the share price should over time double from here.

MYX

I think MYX got massively oversold to below 60c. It’s got a pipeline of drugs coming through, a new plant to cut costs about to start production and good management. Over the medium term this will likely rebound strongly. Requires some patience though.

Stable

It’s always good to have some money in something that is stable.

WAM/WAX

WAM and WAX are listed investment company’s from Wilson Asset Management. They are basically managed funds you can trade. WAM and WAX have been steady performers.

AFI

Another LIC that essentially mirrors the ASX. Steady and stable.

So there’s a bunch of share picks for 2018 to keep an eye on. Be wise.

6 comments

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6 comments

Jaime February 2, 2018 - 3:07 pm

Hi Luke, thanks for the tips. I did my own research and have since brought a couple of these.

One of the ones I brought was BUD at 30c. It has since dropped to 21.5c and there is currently a trading halt due to ASX queries. I am new to the share game and I getting a little worried.

Wondering if you think I should cut my losses or stick with BUD? Thanks

Reply
dollarwise February 2, 2018 - 10:14 pm

Jamie,
I also own these and am slightly in the red. You need to do your own research and take a medium term view. If BUD execute on sales, this price is a bargain. If their product fails to sell well, it will tank. The next two quarters will reveal their ability to execute. I think management are good and am hopeful they can. As for the ASX query I don’t think there’s much to it. Nothing like what’s happening with GSW that seems like genuine misinformation. Bud have been pretty transparent and I was comfortable with their query response. Their may be some more downside to come with the ASX query and fears flowing from GSW. I’ll be adding to my position if that occurs and will look at the next two quarterlies. If revenue doesn’t significantly increase, that’s the point I’d be cutting it. If they do increase as they have forecast, then the share price will follow. Be patient. This is an early stage company with a potentially huge growth runway. There will come a point when I would sell personally. But that time is not now for me. I’ll wait to see the numbers and make a decision on that. Don’t fear, it’s only money! Luke.

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Steve April 6, 2018 - 6:32 pm

Hi just found your page today, getting into your content! Just a question are you worried about asset protection in case someone was to sue you in regards to something they may have read on your website? It is something I am wondering about as I am creating my blog

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dollarwise April 25, 2018 - 7:14 am

I think you just need to have a clear disclaimer that states clearly that this is your personal opinion, not personal financial advice, etc. Anyone doing a blog like this is seeking to be helpful. One would hope this wouldn’t happen, but I guess you never know.

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Leonard December 10, 2019 - 5:36 pm

Looking forward for your 2020 share market ideas

Reply
James Jensen July 12, 2020 - 9:39 pm

I feel glad to know some great share company names. Thanks for sharing this post with us.

I have no idea about LYC share that’s main themes are electric car, battery.

Can you please let to know about this share company in detail?

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