2019-05-01 Money Australia

(Steven Felgate) #1

How to nail a 10 bagger


STORY GREG HOFFMAN

SHARES STRATEGY


JumboInteractivehitsthejackpot
2012 2013 2014 2015 2016 2017 2018 2019 (F)
Revenue $24.1m $25.2m $24.1m $29.2m $34.3m $32.4m $39.8m $63.0m
Netprofit $6.8m $3.9m $2.8m $0.7m $4.7m $5.6m $12.1m $25.0m
Earningspershare 16.7¢ 6.9¢ 6.4¢ 1.5¢ 10.6¢ 12.6¢ 23.4¢ 40.5¢
Dividendspershare 3.0¢ 3.0¢ 3.0¢ 3.0¢ 7. 0¢ 8.5¢ 18.5¢ 30.0¢
7-yearannualrevenuegrowth 14.7%
7-yearannualprofitgrowth 20.4%
7-yearannualEPSgrowth 13.5%
7-yearannualDPSgrowth 39.0%

Jumbo’s Australian success
2012 2013 2014 2015 2016 2017 2018 2019 (F)
Revenue $24.1m $24.4m $23.8m $29.4m $34.2m $32.4m $39.8m $61.5m
Pre-tax profit $9.1m $6.4m $6.8m $8.1m $12.4m $12.3m $18.9m $40.0m

One of this column’s most


successful calls reveals


the recipe for a jumbo


investment return


O


wning a stock that rises 10-fold
from your original buy price is
an aspiration for most inves-
tors. The term “10 bagger” was
coined to describe such stocks
by American fund manager Peter Lynch in his
book One Up on Wall Street. These days, a more
modern term “10x” (pronounced “ten ex”) is
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