Multibaggers

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.

56 Comments

Ed

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

Reply
HUB

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

Reply
Dom

Hi Hub,

Just been reading into facts on QFI. Some interesting quotes for you..

1.Quadrise estimate each vessel could save $1 million dollard in fuel a year…

2.MSAR eliminates soot and carbon…

3.Estimates $200 million saving to Maersk a year alone…

4.Maersk signed up for large quantities of MASR until 2019..

5.£267 billion market for bunker fuel a year..Huge potential for Quadrise..

Possible Multibagger?

Cheers
Dom

Reply
J-Dawg

Only recently stumbled across your website and happen to hold a large number of the stocks you champion.

Had a wee search across the archive and notice no AMC mentioned anywhere? This is a mining minnow with a multi billion dollar resource in Eastern Russia. They are currently awaiting a licence (long overdue) to confirm production which is a 99.9% cert which will transform the company.

I would say there are not may companies on the AIM market in the same boat as Amur Minerals and the upside potential is as good as any currently on the list with the exception of say FOGL, BOR (if they hit big). Given the risk / reward ratio highly in their favour compared with the aforementioned stocks, I think it should be one to give some consideration to on your site. It is my joint highest holding along with RKH whom i luckily got in with a 50p a few years back.

I’m now in the same boat with BOR hoping lightening can strike twice.

Other stocks i hold include…. SLE, BZN, DES, GKP, BEM, BLVN, MTA, BZT, RRL but AMC is my diamond in the rough!

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gra1969

Whilst PL was to be by multibagger in 2011/2 (taken out by Ophir) i am now in FRR (Frontera Resources) and feel that this could well be one of my 2012 shares.

Indeed, when Outrider bought into DPL no-one expected quite what came next and the premium that Ophir were paying to the sp at the time was fantastic. i made money, but did not get the multibagger i had hoped for.

Now having been in FRR for a few months guess what? Yep an RNS stating that Outrider had taken 152mill shares in FRR!!!!!!

Now with further research you will see that FRR have a SEDA and Yorkville took shares at 1.79 recently, indeed before that and at the end of re-structuring was the II placing at 4p……………………..

Ill leave you to dyor, but for me FRR are a 2012 multibagger in the making!

All imho of course 🙂

GRA

Reply
HUB

David,

The markets are full to the brim with great commodity stocks. Some better then others etc. The hotlist is just 10 places deep,hence it’s more a question of short listing and then short listing again. XTR may well be on the list next year. Alternatively – if I see developments or situations change – an ‘heads up’ on stocks is given whether in the lists or not.

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Bob Hardy

Anyone think MCHL could multi bag back up this year. gone from £4.50 down to 5p! Many of the tips from last year at such low prices now they could all do so well in future ie BLVN, CAZA, GCM, CHAR, ANR, AMX, XEL, RRL, HER. After all 2011 was not kind to any of them and all have great potential!

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Bud Fox

Why is xel flying? Last week u could not give their shares away. Is it all a con ?

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HUB

bud,

If you can tell me the reason for XEL’s fall – it might give you the reason for the recovery. It’s fairly obvious why it is rising. It’s undervalued, abused and quite frankly – the last two weeks have been embarrassing for Mr Market. Is he running a market or a casino?

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Bud Fox

Yes, sure xel was way under valued at the £1.10 level and did get taked down day by day ( mostly on very low volume ) but lots of shares are undervalued at the moment ( NPE ) but they will not rise as fast as XEL the last 2 days. There must be another reason besides the fact it was undervalued ?

Reply
Onlyprofit

Hi Hub,
Very good website and much appreciated for the time and effort to keep this site up to date. Could you please have a look SOLO oil. It has very good potential. It has JV with Tulow oil. I hope you will add SOLO oil into your multibagger list.
Nice work and good website.

Onlyprofit

Reply
CashRulesEAM

Hub

Appreciate the time and effort you take to keep this site up to date, your summarising of RNS’ etc is always concise and spot on. I’m in most of the oilies that you have in your A and B lists (I was invested before you selected them, so I wasn’t cherry picking). I’ve just been doing some background reading on Bahamas Petroleum Company, the company seems to have some interesting times ahead over the next couple of years, but do not get mentioned on the BBs that often, and I don’t remember you mentioning them. Any views?

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HUB

BPC has been an extremely popular stock with pi’s and I think it has been a victim of the ‘pump it up’ and then get a ‘placing’ done trend which is mainly driven by the brokers involved. RRL and SXX are very similar in terms of that funding pattern. All of them dropped back significantly after the placings was done.

Apart from the sp’s progress – the business itself clearly has some exciting prospects and I would guess that ‘in time’ and when the market is in the mood – some of those interests will be better understood and factored into the sp.

Reply
wildguess

BPC still do not have permission to drill, this will be decided from the results
in a referendum put to the Bahamian population quite soon.
It will be worth watching this share price from November onwards because there is a Russian company going to drill in Cuban waters not far from the
BPC block. See the BPC website.

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Olieslim

A recent blip on the ‘multi-bag’-radar looks good. So far not much found to research about them. The fact that puzzels me: less than 21% of their shares are in public hands.

What, if anything, does that say about a ‘potential multi-bagger’? What could it mean for an investment? Is there something like ‘too early’?

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Investor2010

Hub, I appreciate your blog. I wonder if you can say why Matra is not on your list or in any of your 4 hotlists? They are expected to multibag this year.

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Jogger

HUB – suggest you check out SOU when you get a minute. In the doldrums due to past delays but have recently purchased Italian assets worth more than 5x their current market cap. Also, have free carry wells in indonesia which could be company makers. CaptainNelsonForties on advfn has a target of 10x the current share price.

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jimbo

Jogger, looks like you picked a good one. The presentation that they have just released is fantastic – “billion dollar upside”. Not bad for a market cap of £45m. Fair value at 5 times current share price not including exploration potential. Re rating in progress but still a long way to go.

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Andy

Hi Hub
I was just wondering your thoughts on AST.
You were very bullish before the placing in 2010.
Do you have any thoughts on the share price over the next 12 months.
I was thinking that AST may be a take over target

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Mikey G

Hi Hub, I’m new to this site but i have followed your blogs on Investor III.
I can’t find your Hotlist for 2011.
Can you direct me to it or send it to me?

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Alredgeorge

News flow in Altona in 2011 should help this stock move forward? I think over a 3 year period it should prove to be winner especially now a major Chinese investor has taken a 51% stake in their operation.

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Stormcat

Do you have a target price for Encore oil based on their current oil discoveries ?

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Blueapple

Nice work on the website Hub, first time i’ve popped in to take a look but i’ll be popping my head round the door more often in future for a cuppa.

BA

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James Abel

Hi Hub

I have been reading your posts on Iae, GKP, XEL, the list goes on i’d just like to say thaks for all your posts you are a true gentleman and i hope we can have a another good year ahead . I think i have to learn to let the shares ride but i have got burned in the past but hey how it’s all part of the game .Can’t wait for the new hotlist and reading your posts this year again

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Jaber

Hi Hub,

Excellent work here. I believe it will be a challange to come up with top 10 for 2011 due the large number of compnies in the market that all have a massive potential. I would rather if you do top 20 list instead. I think a lot of people anticepating your list would be very pleased with top 20 instead of 10.

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Rich B

Hi Hub,

Pretty new to the investment game, and what i was wondering was…would it be worth while having (with help from other investors) a page in this site that holds ‘estimated RNS release dates’ where known….ie JORC / well spudding / flow test dates etc. Investors could also leave their thought’s on what might be published and some insight to the company etc.

Being knew to this i’m not sure if this would help….maybe useful…???

Email news letter maybe another…?

Got to say, thanks for setting this site up, been useful to see what’s been happening…I understand that the above may not be possible, as this would take up a fair bit of time…just a thought. Any feedback on the idea welcome.

Regards

Rich B

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Peter

Hub,

Excellent website, always good to see sites which help the PI`s…..

Keep up the good work.

All the best to you and the rest on here in 2011.

Peter

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JStandMick

I remember seeing your hotlist posted on the AST bb a year ago and took to opportunity to add 3 of my own (posted on the AST bb 4/1/2010). I went with CHAR at 23.5p (now 188.0p), BPC at 3.69p (now 15.25p) and KRY at 12.91p (now 16.75p).

Gains of 700.0%, 313.3% and 29.7%. I continue to hold CHAR and BPC as I see significant further upside. I reluctantly sold KRY at 18p to buy more RKH which should start 2011 in fine style though I may well buy back into KRY if the price drops below 16p.

As for 2011 I still see the resource sector as the place to be as the Chinese, Koreans, Indians etc continue to scour the globe to secure supply. My three largest holdings are GKP, CHAR and RKH and wouldn’t be at all surprised if that’s still the case in a years time.

Last year I found it easy to pick 3 to follow. It’s not been so easy this time. I was going for XTR and HER (been in both for a while) but this last week has seen a sharp increase in both. I am a big fan of companies with interests in Africa so I’ll stick with that theme for 2011. So, in no particular order I’ll go with JLP (30.75p), MWA (10.5p) and NRRP (4.125p) though AEX (8.5p) could also have made the list. If I hadn’t restricted myself to Africa I’d have picked EMED (12p).

So, good luck to you all for 2011. Let’s hope it’s a happy, healthy and prosperous one for us all. Oh….and one final word…PATIENCE!!!

Mick

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Barry Parker

HI Hub – how about ETO, EROS, DQE ? All 3 are in the Indian Film business, & with worldwide deals to varying degrees. Very impressive recent growth records, profitable, & yet they have been largely ignored during 2010.

Is 2011 likely to be their year, or will we still be dominated by Oilers & Miners ?

Bazzerp

Reply
doc iqbal

hi hub
i have 150k to invest.
your help and expertise would be appriecated
and ill pay you a commission for your help
gain or lose its buissness i wont cry on you shoulder.

Reply
HUB

I’m not regulated by the FSA or Financial services in general so cannot be your fund manager or advisor. I can however point you in the direction of many stocks – some via the Hotlist soon to be published on Jan 2nd or via Heads up updates which I issue from time to time.
What you need to do is decide on your ‘risk’ appetite, your returns/growth targets and most of all – your ability to only invest what you can afford to lose.
For every gain in the stock market – there has to be a loser. The markets have been buoyant over the last couple of years post March 09 due to the recovery and zillions of £’s that have been pumped into the markets from Governments around the world.
2011 could be a very different year and gains/profits harder to achieve. My opinion is that it is easier to start a virtual ‘watch list’ as a novice and trade it like it is real. If you do well with that, then give it a go but start small and never over stretch yourself. There’s no such thing as a dead cert in these markets. Every stock carries risk and you could lose everything you invest.

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Anonymous

“For every gain in the stock market – there has to be a loser”

What does this mean? I know you don’t mean it literally, but I can’t get what you’re trying to say.

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BH

Same here Hub,

Many thanks for assisting my decisions, and making some spare cash in 2010.

Looking forward to becoming more comfy in 2011!!!

BH

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RB Fishing Hand

Hub.
fantastic site well done.
I always enjoy reading your posts and have followed some of your leads to great success.

Looking forward to the “Hub list” for 2011.

Thankyou for taking the time to share your knowledge with us.

RB

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jimonegbr

HUB

Many thanks for all the tips over 2009 and 2010. In my worst investment ever I lost most of my pension fund via TRP. Aftyer your tiops for XEL and GKP I have recovered all of the loss and some. Now at 75% GKP 25% RKH.

Thanks again

Jim

Reply
HUB

Jim,

TRP was always a high risk stock based on the early drill this year. Worth noting that after the initial duster and drop from 4p range to just 1p, TRP actually looked like the bargain of the century based on future drill plans and licence area. Sure enough sanity returned and so did the sp. It’s back to 4.5p range. Good to hear you managed to use your funds to get into GKP and XEL.

One word of warning – all these stocks are very high risk and it might be worth looking at a mix of low, medium and high risk stocks for 2011 to avoid further failures. We all like the hunt for multibaggers, but are also acutely aware that they come at a heavy price of ‘risk’. Many are ‘makers or breakers’.

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Falklandsfever

What a great site Hub your a credit to the movement Pi’s v Institutions. I wish you and all the Pi’s a profitable and healthy 2011. I started with my last £10k after taking my life savings out of the banks in 2008. It currently stands at £103k and thats after losing £26k in two tranches with DES. Not bad for an amature eh! MERRY XMAS TO YOU AL.

Bagman

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maccscar

Some very intresting stocks named here, great site Hub thanks for putting in the effort. whats your thoughts on any great gold stocks Hub? im holding solo, grl and ggp I think all three are set to deliver great things over the next year, the upside on grl and ggp could be huge and solo seems a safe bet based on previous rns’s, should be at least a £1 by year end.
Thanks again Hub and a great 2011 to you.

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HUB

there are quite a few gold stocks mentioned in the hotlist 2011 section. See the comments made by other posters. Plenty there to check out.

Broadly speaking I expect Gold to do well next year as I believe the FEDS are keen to keep the dollar low to bolster their economic recovery.

As a teaser – I will be including one or possibly two gold stocks in the hotlist 2011.

Reply
5 Iron

These are my hotlist contendors

12 Oils
Top 4 1. GKP, 2. XEL – Isa, 3. BLVN, 4. IAE – Isa,

These are a lot cheaper and all offer a worthy gamble
CAZA -Isa, RRL -Isa, BPC, DPL, MXP, MTA, AST, VOG

Coal
ANR, GCM, EDL, POL -all exciting long term projects

Minerals
AMC, HER, FDI

Property
QED, CAL, WKP – bad year last year for property – must improve surely! Prices are low to get in at.
——————————————————————————–

Reply
Fowler The Prowler

Hub

I appreciate your contribition and willingness to help pi’s and there is no doubt you have picked some impressive winners. Without wishing to sound too critical, I do feel that your Top 10 list is very misleading and the way you present it does not do you justice. You are quoting the level you tipped at, but not the level that you sold at or the times in between that you have taken a profit out. I appreciate the later would be difficult to present/ communicate, but it would be fairer and more realistic to state when you have closed out of the investment and the current price. Current price is very valid. MXP for example has struggled to get back above 20p recently CP around 18p but you have it on your list at 34p almost double its current price? Fair enough to say reached but should also state current price for good order and when you recommended derisking or selling. QED for example you sold out of at 40p before going back in so was the gain really 3,000 per cent? This gives a more rounded view and will still show your investments in a positive light. I also believe it will result in a larger user base for your excellent new venture.

I respect your honesty in also listing the duffers which of course comes with the territory of looking for high reward v high risk investments.

I hope my feedback is considered in the positive spirit it is intended in.

All the best for 2011.

Reply
HUB

Appreciate your feedback and do understand that it’s not always black and white. The hotlist as with the other tips or heads up I issue throughout the year is precisely that – a list and heads ups. It’s not my personal portfolio and many of the stocks fluctuate during the year based on their own operational plans and successes. MXP rose from 2p to test 35p in 2009. It has since traded down to 10p again and up to 32p ranges in 2010. It’s a volatile stock. But that’s still a multibagger based on 2p to 34p regardless of whether I sold personally or whether the stock fell back. I’m not regulated or authorised by the FSA to advise traders or investors to sell or buy stock. I can provide pi’s with the insight and the opportunity – but that’s it – the rest is up to them. I’d love to be a virtual fund manager for pi’s but everyone has differing circumstances and risk appetites etc – hence it’s vital to trade to your own strategy.

The top list of multibaggers is not intended to read as my ‘personal successes’. It’s simply a factual account of the stocks lows to highs performance.

Stocks go up and down and occasionally I will reiterate a ‘head ups’ on a stock that I have already tipped earlier in the year. TRP is a prime example. That was entered into the hotlist in Jan 2010 at 3.87p. It rose to 5p as it neared TD of a vital drill. I was still bullish at 4p range but knew the drill was low CoS and it could fail. The drill was not successful and the stock got punished. It fell from 4.5p ranges all the way down to 1p (yep 1p). At that time, I issued a further ‘heads up’ citing that it was a bargain and it had been overly sold. 6 months on and the stock is testing 4p high ranges again. The 2010 hotlist will only show an increase from 3.87p to circa 4.5p or where ever it closes on 31st Dec. In reality, the stock has actually provided a 4 bagger based on the other ‘heads up’.

I think investors should pay close attention to the 2010 hotlist results and view the years ‘highs’ and ‘lows’ very closely as they can often tell a very different story.

thxs for your post – I hope the above is a fair response.

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Fowler The Prowler

Hub

Thank you for taking the time to reply. Fair play to you. Wishing you an equally successful 2011.

I’ve got down with flu over the last few days so struggling a little at the moment, but when I get the opportunity I’ll post a little more info on Mariana.

Best wishes

FTP

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grumpynhappy

As you know Hub,

I follow a lot of your tips and have learned a tremendous amout this year thus far. Really looking forward to 2011 where hopefully us PI’s can really help one another and make a decent profit from our in depth research.

Us as a group have a vast array of skill that we can use to our advantage to help us gain our goals for 2011.

I wish you all a very Happy & Healthy Christmas and look forward to our tips and debates in 2011.

All the best a Very Happy n Grumpy.

Reply
TrekMadone

HI Hub,

For consideration in the 2011 hotlist.

BPC, RRL, DPL, ENEG as multi baggers.
RKH, XEL, CAZA, NPE, VOG with further to go.
A dark horse AEY, I know you know the story!
One out of the comfort zone SGO!

TM

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greatbull

Bought both Xcite 49p and IAE 50p so I have done ok from your tips in the past and look forward to your 2011 hotlist

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pel

Thanks to Hub. I bought iae at 41p still in , gkp at 60p still in . Been in and out of a few of the others . Got in edl at 0.8p hoping for 8p in a few months. Thanks again Hub for sharing some great tips

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ifoy

Hub – another sincere thanks here. Only started investing in August. Bought XEL @ 64p, GKP @ 105p and IAE @ 102p. Still learning the lesson of letting profits ride (viz. XEL!), but still a very nice 80% up on my investments in less than 4 months. Learning all the time, but terrific start!

Reply

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