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
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.
GSW is a logistics software company. Their shares have run from 88c to over $4, so it’s not cheap. 2018 will be the year that makes or breaks GSW. But I think it will succeed, though there may be some big price volatility along the way. If it can execute and bring in revenue with its major deals with Yum and Amazon and the CBA among others, this company’s shares will move from $3.70 to well past $10 and beyond. I’m waiting to see some numbers on execution to see if this is a long term keeper. It should be pretty clear by then end of 2018.
**Update**? Unfortunately GSW overstated the state of its major deals and misled shareholders. Management is key to a company and GSW have be shown to have very poor management.
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.
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.
Challenger just keeps growing its annuity business. It’s a slow and steady growth performer that keeps going forward. Another great investment to hold.
This is a hold for lifer. A great company. It’s history speaks for itself.
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.
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.
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.
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.
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.
The loans business is doing well. Just look at the chart for CCP. This should keep grinding up over 2018 and beyond.
A rare earths producer. This is riding on the electric car, battery theme. The next 5 years should support great growth at LYC.
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.
When times are good Macquarie bank just grows and grows. Now is a good time to ride the wave with Macquarie.
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.
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.
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.
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.
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.
BIG has taken off this past year. The video production company is growing rapidly and doesn’t look like stopping any time soon. It isn’t cheap though, so there’s risk if it’s growth slows.
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.
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.
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.
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.
It’s always good to have some money in something that is stable.
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.
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.