If you'd put $30,000 in this ASX biotech stock 4 months ago, you'd have $140,000 now

This little Aussie battler has been killing it the past few years without much fanfare.

| More on:
Shot of a young scientist using a digital tablet while working in a lab.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is it fanciful imagining how rich one could be if only they had invested in a particular ASX stock?

I say no, because it keeps you motivated to keep researching and investing.

It also reminds you that diversification can not only reduce risk from losers, it allows spectacular winners to carry the whole portfolio upwards.

On that point, there is one small-cap stock that's been making waves in 2024.

In fact, it has almost tripled in share price so far this year.

Let's check out what's happening:

Cast your mind back to spring

Perth biotech PharmAust Limited (ASX: PAA) may only have a market capitalisation of around $129 million, but not so long ago it was even smaller than that.

Let's go on a very short journey in the time machine — back to November.

At that time the PharmAust share price was hovering around 7 cents. In fact, it had been more or less at that mark for a good three years.

Hypothetically, let's imagine you bought $30,000 worth of shares then.

At the start of December, the company presented some favourable results from a study of its monopetal product. The solution aims to treat motor neurone disease (MND), which is known as Lou Gehrig's Disease in North America.

The market took notice and sent the stock shooting up.

But then just two weeks ago, more positive test results came out, that really put a rocket under the ASX stock.

The wash up is that the shares are 33 cents at the time of writing.

That $30,000 you invested just four months ago? That's now worth a cool $141,428.

How does that compare to a term deposit?

This biotech stock and a bunch of losers = win

Now, no one is expecting that you'll land this sort of winner every time.

But if you can manage one or two multi-baggers within a diversified portfolio, that's all you need to grow your wealth.

Check this out. 

Say, at the time you bought PharmAust shares, you also bought four other stocks for $30,000 each.

Then in the four months that PharmAust was going crazy, the other four were having a miserable time to dive 25% each.

Your overall portfolio would still be a stunning 54% up in just one-third of a year.

Good luck with your investments.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

Stethoscope with a piggy bank in the middle.
Broker Notes

Australian health insurance: Does Macquarie prefer Medibank or NIB shares?

Medibank and NIB shares have both surged in 2025. Here’s what Macquarie expects now.

Read more »

Two brokers analysing stocks.
Healthcare Shares

Why does Macquarie think Fisher & Paykel shares are a buy?

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) shares have been on form over the past 12 months. During this…

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Healthcare Shares

Which small cap ASX share is jumping 10% on strong results

Investors have been bidding this stock higher today. But why?

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Why Macquarie forecasts 30-50% upside for these ASX All Ords healthcare stocks

Macquarie updated its target price on these three ASX All Ords healthcare stocks.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Healthcare Shares

Guess which ASX 200 stock is jumping 10% on big news

This stock is catching the eye with a strong gain on Thursday. But why?

Read more »

a young woman holds her hand to her ear and leans sideways as if to listen to something that's surprising her as her eyes and her mouth are wide open.
Healthcare Shares

Down 15% since January, are Cochlear shares now a buy?

Let's see what analysts are saying about this blue chip.

Read more »

Green arrow with green stock prices symbolising a rising share price.
Healthcare Shares

Guess which popular ASX 200 stock is up nearly 60% in less than 2 months?

Investors who bought this ASX 200 stock in the recent dip have been strongly rewarded.

Read more »

A senior pharmacist talks to a customer at the counter in a shop.
Healthcare Shares

Are Sigma Healthcare shares a good buy now after the merger with Chemist Warehouse?

Sigma Healthcare shares have soared 154% in 12 months. Can this stellar run continue?

Read more »