Australia’s top 6 stocks and 10 baggers for FY 2020
You’d be forgiven for thinking the ASX was in a slump and that stocks were underperforming. You would be praised for taking a cautious approach to investing in this market – which you should do no matter what the state of the market.
However, you would be surprised to know that in FY20, the average ASX stock returned 13 per cent, whilst the top 100 returned 394 per cent.
Some small cap stocks have become large caps and if you had invested in those, you’d be a very happy shareholder.
So lets have a look at the ten best performing stocks on the ASX and which stocks delivered ten times returns, despite the COVID-chaos that hit particularly hard in February and March this year.
1. Auteco Minerals Limited (ASX: AUT)
With a market cap of $213.7 million, resources company Auteco Minerals has seen its share price rise from $0.005 to $0.160 – a return of 3100 per cent. That’s significant growth and it is one of six companies that made gains of over 1000 per cent. The success shouldn’t be underestimated as there were only three 10 baggers in FY2018 and none in FY2019. Auteco was tracking much the same as any small cap does until it acquired a 1.5-million-ounce Canadian gold project called Pickle Crow in January and diversified away from vanadium. It was a smart move.
2. Zoono Group (ASX: ZNO)
I wrote about Zoono back in February, when it was capped at $142 million. Today it is valued at $425 million. Its share price has risen from $0.091 in July 2019 to now sit at $2.600. It is one company that has done well in the fight against COVID-19, as it specialises in the development, manufacture and global distribution of a unique range of long-lasting and environmentally friendly antimicrobial solutions. Zoono Group has developed, and owns, a wealth of intellectual property based around the ‘Zoono Molecule’ – a unique, antimicrobial technology that bonds to any surface and kills pathogens including bacteria, viruses, algae, fungi and mould. It has proven efficacy and longevity; it does not leach and cannot diminish in strength. It sees itself as part of the solution to both coronavirus and other new virus threats through its technology. It seems shareholders do too.
3. Magmatic Resources (ASX: MAG)
The $46.7 million capped gold explorer Magmatic Resources is one small cap doing well in the East Lachlan porphyry copper-gold rush. Magmatic started the financial year at $0.018 and finished it at $0.270, a gain of 1400 per cent.
4. De Grey Mining (ASX: DEG)
I have been following the $1 billion capped De Grey Mining since 2017 when it was an $8 million capped junior gold explorer (I do not have shares in any of the companies mentioned in this article). De Grey started the financial year at $0.069 and finished the year at $0.905, a return of 1206.32 per cent. Success has come on the back of discoveries made at its Hemi Gold Project.
5. Race Oncology (ASX: RAC)
Race Oncology’s clinical trial success for its anti-cancer drug has really caught shareholders’ attention. The company started the financial year at $0.057 and finished the year at $0.700, a return of 1206.32 per cent. The health company is currently capped at $81.5 million.
6. Scorpion Minerals (ASX: SCN)
Following positive rock chip results in February, the $9.2 million capped small cap has been riding a wave of excitement from positive rock chip results and its upcoming drilling campaign. This Australian mineral exploration and resource development company has projects in the Murchison Province, Western Australia. It has a long way to go, but it has risen from $0.004 cents to $0.045 cents, for a gain of 1025.00 per cent.
If you already had money in these stocks, you would have a good year. If you are now considering them for your portfolio, it is worth seeking professional financial advice to see if they fit your risk profile.
The market does fluctuate and when it comes to investing the old forewarned is forearmed rings very true.
This update is not financial advice. This article is general news and information.
Home Loans: The comparison rates are based on a secured loan amount of $150,000 and a term of 25 years.
Personal Loans: The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless otherwise indicated in the product name with^, in which case, the comparison rate is based on a loan of $10,000 and a term of 3 years. The comparison rates are for unsecured personal loans only for the relevant amounts and terms. The comparison rates for car loans and secured personal loans are for secured loans unless indicated otherwise.
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.
The products compared in this article are chosen from a range of offers available to us and are not representative of all the products available in the market and influenced by a range of factors including interest rates, product costs and commercial and sponsorship arrangements
InfoChoice compares financial products from 145 banks, credit unions and other financial institutions in Australia. InfoChoice does not compare every product in the market. Som