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Stocks with big potential in 2019

Analyst Claude Walker shares his top picks.

Azal Khan

Digital Journalist, Your Money

Editor’s note: The following article contains information only, it is not intended as personal or general advice. Your Money recommends getting professional advice specific to your personal circumstances.


Can you believe that if you’d invested $1000 in Netflix in 2002, you would have a hefty $200,000 in your pocket today?

And if you had invested that same amount of money in Microsoft, you would be $1.5 million richer today.

What are the under-the-radar stocks that you should be investing in that could make you the big bucks in 2019?

Analyst Claude Walker from Simply Wall Street shared his top picks and said the key is to look at the smaller end of the Australian stock market.

“Some of these great US companies we’ve talked about like Microsoft and Netflix, they were venture capital funded for a long time,” he said.

“In Australia, if we want to get those sort of big returns we will have to look at the much smaller end of the market.”

Despite his recommendations, Walker warns not to “put all your money in one basket.”

XREF LTD (ASX:XF1)

Walker described XREF as a software company that makes it easier for big employers to go through recruitment process and check referees.

“The way they make money is they charge the employers per reference check and can do it a bit cheaper by using this software, rather than hiring another person through HR.”

Even though the company is still making a loss, Walker says he can see the company moving to profitability in the next few years.

“A key point in a fast growing company’s life is when investors say ‘You probably don’t need any external funding” and I think that’s on the horizon for XREF.”

MGM WIRELESS (ASX:MWR)

“This company has around $50 million market cap. They have developed a product called a space watch for children.”

The children’s smartwatch is a phone, GPS tracker and messaging service aimed and parents and children wanting to stay in contact without the pitfalls of social media and the internet.

Walker points to some anecdotal evidence and found there is demand from parents for this product.

ALCIDION (ASX:ALC)

“This is clever software that helps make sure people don’t fall through the gaps in hospitals. It helps flag when a doctor needs to look at a patient straight away,” Walker said.

ENERGY ONE (ASX:EOL)

The company provides software to energy retailers.

“I think its starting to get on the radar of a few professional investors now because it’s made a couple of acquisitions.

“It does make a profit which is nice to see.”

“The share price could fall, but because software does tend to have sticky customers, especially with these big companies, and often those companies can become targets for acquisitions as well.”

PUSHPAY HOLDINGS (NZE:PPH)

The New Zealand company provides software for big churches in America.

“As funny as it is to think about, churches are modernising and want engagement software which can include helping facilitate donations and getting the message out to all of their members.

“These are big churches and still have a lot of young people still going to them.”

PRO MEDICUS (PME:ASX)

This company keeps on winning big contracts with the best hospital groups in the world, Walker said.

The company has a software called Visage which helps radiologists in hospitals to make quicker diagnoses.

“I think its a great Australian company.”

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