- The article discusses the shares that have provided skyrocketing returns over the past few years.
- PVW, AKN, HHI, RHI and CR9 are those stocks that have delivered extraordinary returns.
- The articles talk about the factors that have led to the increase in the returns along with the future prospects of these shares.
There are some shares on the ASX that have provided skyrocketing returns over the past few years to the long-term investors and can be considered as celebration stocks.
The article will talk about those shares that have extended extraordinary returns to the shareholders in three years and years to date.
So, let’s directly look at these celebration stocks.
PVW Resources Limited (ASX: PVW) is an exploration and mining company in Western Australia and the three flagship projects of the company are Gordon Sirdar, Mount Clifford and Tanami West Australia project. Investors who invested in the company a year or three years back, they are rewarded handsomely. From year to date, the investors enjoyed a return of 24.90k%. If an investor has made an investment in PVW three years ago, from a long term perspective then presently they have generated a return of 16.57k%.
Celebration stocks to look at this season
The main question is, will the company continue to generate the same returns? So, let’s look at the current position of the company.
- In the Tanami AU/REE project, the and holding of the company has increased by 40% and has shown the immense potential of company-making discovery.
- The company will gain exposure to the critical minerals because of the current projects.
- After the discovery of gold anomalies, landholding in Kalgoorlie increased by 50%.
- Gold has a promising outlook as no marketing is required along with the short path to commercialisation.
As of 25 October 2021, PVW shares closed the day at AU$0.445, with a market capitalisation of AU$31.93 million.
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Development and exploration company, Auking (ASX: AKN) is invested in the Koongie project that is located in north-eastern Western Australia. The main objective of the company is to become a mid-tier mining group by developing and acquiring near-term metals activities.
Auking Mining shares have generated a return of 11.90K% within a year and a return of 7.90K% within three years.
So, what is the current status of the Koongie project and does it have the potential to maintain the interest of the investors?
- The location of Koongie Park is accessible to advanced zinc and copper exploration locations.
- The company have 10 exploration and mining licenses that cover an area of approximately 500km square.
- WA Geological and CSA Global surveys indicated that the region has promising prospects of base metals.
- There is a possibility of expansion along the strike and depth.
- The company will also be benefited from the increase in the global prices of copper and other base metals.
As of 25 October 2021, AKN shares closed the day at AU$0.235, with a market capitalisation of AU$14.46 million.
Health House international
Health house International (ASX: HHI) is a Medicinal Cannabis Group that distribute medicinal cannabis globally. CannPal Animal Therapeutics, Zelda Therapeutics and AusCann Group have listed companies that have been established by HHI, that offer a range of medicinal cannabis products.
The company has established strong relationships in the capital markets like the United Kingdom, Australia and Canada and it has driven the return on the company shares. In the year to date, the investors gained a return of 2.30k%.
What are the factors that have led to increasing in the HHI returns?
- Health House AUS is a leading distributor of cannabis for medicinal purposes.
- The company has a license of distributor, exporter and importer.
- The cannabis market in Australia is on the strong growth path and presently have monthly revenue of AU$400,000.
- The cannabis market enjoys growth in the international market as millennia of medical usage has been identified by the researchers.
- Cannabis will create disruption in the market and create trillions of dollars in the pharma industry.
- The company has reported slow growth in the expansion in the United Kingdom market.
- The 450 million population of Europe further provides an opportunity as medicinal cannabis has been legalized in the major countries of Europe.
As of 25 October 2021, HHI shares closed the day at AU$0.096, with a market capitalisation of AU$17.02 million.
Red Hill Iron
Red Hill Iron Limited (ASX: RHI) is engaged in the evaluation and acquisition of the iron ore potential in tenement packages of the company that are located in the regions of WA. Red Hill Iron Ore Joint Venture and Pannawonica channel Iron ore project are the two main assets of the company. In the RHIOJC tenement, the company have 100% interest in ferrous metal exploration.
Red Hill Iron generated a return of 2.07k% in the last three years and the return enjoyed by the investors from year to date is 2.17K%. It can be seen as significant growth in the investors’ portfolio.
The increase in the returns is followed by the purchase of shares by Toli Poli, that is, insider purchase took place and shares were bought for long term investment and not selling.
When a high insider purchase takes place, then the company becomes mindful about the shareholder’s interest and actions are dependent upon it. Presently, the insider ownership of Red Hill stands at 69% shares of the company and therefore company gives priority to the interest of the shareholders. The insider purchase extends confidence in the market participants.
As of 25 October 2021, RHI shares closed the day at AU$5.24, with a market capitalisation of AU$340.84 million.
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Australian exploration company, Corella Resources (ASX: CR9) main areas of focus are exploration in the Tampu Kaolin project, Wiltshire Kaoline project, Kalannie Kaolin project and Bonnie Rock Silica Project. These projects are located in WA and provide prospects for silica and kaolin.
The shares of Corella Resources provided a return of 10.7k% over the last three years and a return of 1.47K over within a year.
Over the past year, it is intriguing to see that insiders of Corella resources have made a significant investment in the company, that is, AU$105k shares have been shelled out and not for selling purposes. The insider ownership indicates that management aligns its action with shareholder’s interests and this inculcates confidence among the investors.
As of 25 October 2021, CR9 shares closed the day at AU$0.047, with a market capitalisation of AU$19.97 million.