If you're chasing big returns in the stock market you need to be prepared to take on more risk and identify the popular companies of tomorrow not today. While it's likely some of 2014's top performers will carry the momentum into 2015 the best returns may be found elsewhere.
With risk comes reward and more speculative investments should only ever form a small part of a balanced portfolio. It's ok to chase big returns but don't give into the temptation to put all your eggs in one high-risk basket. This is a dumb investment strategy quite unnecessary given the potential to achieve solid returns by buying the best large-cap dividend-paying businesses.
That said here are three stocks that could give your portfolio a big boost in 2015.
Onthehouse Holdings Ltd (ASX: OTH) is a junior property website with some blue sky potential if able to deliver on its central challenge of gaining market share from its two main rivals operated by Rea Group Limited (ASX: REA) and Fairfax Media Limited (ASX: FXJ).
The group already operates a successful data and software service business for real estate agents, but it's the consumer division which is in an investment phase that holds the most potential. The group is aiming to build a next generation property data website to attract users and eventually create a network effect. It looks a high risk but high return investment if able to implement its vision.
Acrux Limited (ASX: ACR) is another speculative investment in the biotech space that may be offering good value with shares selling at $1.24 today. As a manufacturer of testosterone therapy sold predominately in the US market Acrux has faced a number of headwinds in 2014.
Sales of its key Axiron product have been affected by health concerns and potential regulatory interference over guidelines for prescription. The business has also faced considerable pressure from short sellers and poor sentiment. If Acrux is able to ride out the regulatory storm and return Axiron to sales growth in 2015 then it should be a rewarding year for today's investors.
Select Harvests Limited (ASX: SHV) is an almond growing business with profits heavily leveraged to the price received for its key product the world's most popular nut. Currently selling for $6.39 Select looks good value trading on a price-earnings ratio of 10 based on analysts' forecasts for 2015's earnings per share.
Notably two different directors in the business bought around $85,000 worth of shares in the business recently at not much below today's prices. Select Harvests also has plenty of potential to grow organically and through acquisitions, while cutting costs.
The recent Australia-China free trade deal also improves Select Harvests' competitive position against current suppliers to the world's second largest import market in China. The majority of China's and the world's almonds are currently supplied from California, USA. However, this is a farming region currently facing an epic drought with no end in sight for now. If this status quo does not change soon enough almond prices are likely to continue to be well supported into the future.
