What do you think are the most potential multi-baggers? Feel free to share ideas and justify them.
It’s been nice to be on Talenom’s ride, as growth is rapid and profitability is improving. I plan to stay for a long time.
A tenbagger is quite a bagger…
QT, if it succeeds, and Talenom could very well be, although the share price has already tripled in a good year. The pace will probably slow down, but in a positive direction. At some point, the benefits of software will no longer increase, as they have recently, and then revenue growth will decide. Organically, it is of the best quality; through acquisitions, profitability would probably dip.
Avidly’s goal was apparently to 5-6x its revenue in the coming years, with a good team from Capman behind it. That could be it.
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Componenta. The shoemaker knows their stuff.
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Componenta.
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Strong belief that Kamux will be a tenbagger. Good track record of profitable growth. Operations in Sweden are already clearly profitable, and losses in Germany are constantly decreasing, with sales in these countries growing at an annual rate of tens of percent. As volumes in Sweden and Germany grow, profits should start to come in properly, and I believe that at the latest then, valuation multiples will also rise significantly from the current P/E of ~12.
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Remedy. First game release in a long time coming in August. The implementation of the new strategy is well underway, results will start to come in this year, and hopefully the pace will only accelerate in the coming years.
I wish for Remedy, but that would require many, many jackpot releases… not yet a realistic dream… of course, looking at how the competition between Microsoft and Sony develops and if Remedy remains an independent and successful game house for a long time, publishing games it has developed itself, then anything is probably possible 
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Herantis Pharma.. when a licensing agreement or acquisition offer for the whole company comes..
I’d say a tenbagger is a tough requirement if it means a 1000% return. The goal, I think, is to become the largest in Europe. If they achieve that, the share price will probably be more than 5.4 euros :).
Even though Q1 was a bit sluggish, for example, Kesko’s sales decreased by over 15% (Kamux’s sales per store were -4.4% if I remember correctly, and growth was 11% when new stores were included).
Is that “bagger” level calculated from the listing price / lowest price? If so, Talenom would also be off to a good start.
4.73 looked like the lowest price at a quick glance. Now the price is 33.80.
7.14 x based on that. 6.78 was the first price in that graph. Probably close to the listing price, that would be 5x.
No, Kamux is not a tenbagger, not really.
Next Games could be one if their games take off or they make a new hit. Or some other software or platform business could be, adding a zero to the end is a pretty big deal.
I’d guess the company needs to be one that changes its line of business when it’s currently balance-sheet cheap. That’s how Apples, Amazons, and Nokias increased tenfold.
Fellow Finance is almost the only pure platform in the Helsinki stock exchange (?). So far, Inderes’ bull scenario only reaches 21€… if the platform succeeds well, e.g., in 5 years, one would think it has potential for something, but I don’t know if it would be up to the ten-club… probably too early to talk about it now…
It was listed in autumn 2018 at around 7.8€, if I remember correctly… it went to 6€ at the end of last year…
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Neste and Revenio are the latest. Both have a new product that has caused rocketing.
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Nokia will never be a tenbagger again. Not through networks, at least. Ultimately, predicting tenbaggers is impossible, but in my opinion, in Finland:
- Remedy - if their games are a big success.
- Rovio - if there’s a new AB-type breakthrough.
- Herantis Pharma - if the product works and the company is acquired.
- Verkkokauppa - if the business expands and profitability rises, and at the same time, the competitors’ parent companies go bankrupt (Dixons Carphone’s situation is not good).
There are certainly numerous such companies abroad; I would suggest:
- Uber
- Baidu (worst Q1 ever), but the price is also cheap, and the company’s future technological investments seem strong.
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Yeah, it’s not from Nokia.
Nokia might break ten on its best day, but over the last five years, I’ve lost faith in that too.
At Nokia, the leaders are pulling in millions while the company is making operating losses.
It’s just unbelievable, a cost-cutting program needs to be started, and they could begin with Suri.
Nokia, Nordea, or Kamux won’t become tenfold gainers (though this doesn’t mean they can’t be good investments).
If I had to find tenfold gainers, I’d look for candidates in two types of companies:
- Companies currently in extreme distress, not trusted, and capable of rising like a Phoenix once they overcome their problems. Metsä Board did this; its B-share hit a low of €0.22 during the financial crisis. At its best, it was quoted over ten euros. Now the share value is €4.55, meaning a 20-fold return.
However, stocks in this category carry enormous risk. For every Metsä Board, there’s a Tikkurila, Tecnotree, and Talvivaara, where small investors have been left empty-handed. I cannot recommend them without a huge informational advantage.
- Companies that can increase their customer base with low marginal costs, have a small market share of the potential market, and significant capacity for new customer acquisition. These include many software companies (but not IT service companies, which make their money by selling their employees’ time), gaming companies, and health technology companies. Examples, in order, are QT Group, Rovio, and Revenio historically (and nothing else comes to mind right now).
This potential is, of course, also reflected in the companies’ valuations. QT’s or Revenio’s valuation cannot withstand failures.
By combining these two categories, one could find highly potential and risky targets that, if successful, bring the tenderloin to the table. Are there companies on the stock exchange that have failed so far but have the potential for a really big turnaround? Heeros? Efecte?
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You analyzed that well.
As a lighthearted addition, one could mention Outokumpu, which could double its share price in a turnaround, especially if stainless steel prices rise and the Americas team gets to work.
But it’s not a tenbagger, of course; maybe a tripler someday..
Edit: typing on a phone with sausage fingers inevitably leads to errors
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Which one do you think will offer a better ride within 5 years?
- Qt Group (stock price €11.5)
- Remedy Entertainment Oyj (stock price €8.5)
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äänestäjää
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I haven’t been following, but how much money is Outokumpu raking in now that the cycle has been hot? Probably quite a lot, but what happens if the cycle changes? How much debt do they have these days?
the stock price is historically low, though