Five multibagger stocks in 2022- TER, MAY, AVR, SLX, HIO

Highlights:

• Multibagger stocks have the potential to deliver returns multiple times over the original price.
• To look for these stocks, one should know the industry and see if the industry is growing or not.
• TER, MAY, AVR, SLX, and HIO are a few stocks that returned over 100% return in the last one year.

Multibagger stock is a common jargon used amongst the market participants in the present times. These stocks are quite popular amongst them as they have the potential to deliver huge returns within a short span of time. The term multi-bagger was created by popular fund manager Peter Lynch in his book “One Up On Wall Street”.

A multi-bagger stock returns many times over the original price. It can also be considered as an investment that appreciates or has the potential to increase multiple times and has huge growth prospects. Generally, these stocks have robust earnings growth however they trade at a reasonable valuation. To search these stocks, experts believe one should have a fair knowledge of the industry. Generally, we can get these stocks from those industries that are growing.

In Australia, there are six growth centres for the 6 sectors of competitive strength and strategic priority. These include:

• advanced manufacturing
• cyber security
• food and agribusiness
• medical technologies and pharmaceuticals
• mining equipment, technology and services
• oil, gas and energy resources

In the field of mining, we may see some of the most exciting and transformative years in the mining industry. It would be exciting to see how the mining industry looks in a low-carbon, low-waste purpose-driven future. Because of these global changes, there is a need for change.

Seeing the popularity of these multibagger stocks, below are some of the stocks we filtered a few stocks listed on ASX and have delivered solid returns over the past one year and in 2022 so far. In this article, we will know them and see their developments in 2022.

Terracom Limited (ASX: TER)

Terracom Limited is an emerging company originating as a resource explorer and has a large portfolio of operating assets in Australia and South Africa. The Company is endorsing a growth strategy in the direction of delivering a Mid-Tier diversified operating and trading business. It has a global focus on developing a high-yielding diversified asset portfolio for its investors.

On 16 June 2022, the Company signed an offtake agreement with a long-term Japanese trading partner to deliver up to 1.25 million tonnes over thirteen cargoes from the Blair Athol operation from August 2022 to August 2023.

The Blair Athol operation is performing well and is on way to attain coal sales of 2.3 million tonnes for FY2022. The Company expects that the operating cash flow would remain strong.

Melbana Energy Limited (ASX: MAY)

Melbana Energy Limited is an independent oil and gas company with a world-class portfolio of upstream oil and gas assets in Cuba and Australia.

On 29 June 2022, the Company provided Zapato-1 Drilling update. MAY updated that Zapato-1 exploration well now having reached a depth of 1,666 metres in 12-1/4” diameter hole. This well will test a target with a Prospective Resource of 95 million barrels of oil.

Anteris Technologies Ltd (ASX: AVR)

Anteris Technologies Ltd is a structural heart company that provides clinically superior and durable solutions via better science and better design. The Company focuses on developing next-generation technologies that aid healthcare professionals in reproducing constant life-changing outcomes for patients.

On 21 June 2022, Anteris announced that the six month follow-up of the first cohort of 5 patients had shown 86% improvement in haemodynamics. A 6 minute walk which is regarded as a crucial marker of patient well-being, improved 46% since baseline and 6% since three months follow up. Thus, showing how active and fit these patients have become.

Silex Systems Limited (ASX: SLX)

Silex Systems Limited is an Australian technology company that focuses on the commercialisation of SILEX laser enrichment technology for application to:

• Uranium production and enrichment (nuclear power)
• Silicon enrichment (silicon quantum computing)
• Other potential markets (e.g., medical radioisotopes)

On 04 July 2022, SLX announced the signing of a non-binding Letter of Intent between Global Laser Enrichment (GLE) and Duke Energy Carolinas, LLC, and Duke Energy Progress, LLC (Duke Energy) for developing areas of common interest as well as cooperation in the nuclear fuel supply chain. The Letter of Intent identifies several important areas of potential cooperation, like supporting GLE’s deployment of the SILEX laser enrichment technology in the US and the possible speeding up of commercialisation timelines.

Hawsons Iron Ltd (ASX: HIO)

Hawsons Iron Ltd is a developer and producer of iron ore. The Company is focused on developing its Hawsons Iron Project situated near Broken Hill into a premium provider of superior iron ore products for the global steel industry.

On 20 June 2022, Hawsons Iron Ltd entered into a two-year Option contract to acquire three contiguous parcels of land fit for developing an export facility for the Hawsons Iron Project at Myponie Point on SA’s eastern Spencer Gulf.

Under this deal, the Company can buy the three blocks of land totalling 1,000 acres for AU$14 million within 2 years of the execution date.

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