They come and go in all kinds of sectors. But if I had to choose, it needs to be a business model that can scale easily, and that has been software in the past...
Ok having done a 228 bagger and a 63 bagger look at my pick at 10p buying price (now 17P ) SBTX.
Why.?
A new green bio and sustainable anti ageing skin cream ingredient is about to be launched by CRODA ( FTSE 100 ) to replace today’s chemical based Matrixyl.
Croda are the largest supplier of anti ageing ingredients worldwide. Matrixyl sales run at £350 a year.
Tiny SBTX, ( who own the IP ) pick up double digit revenues for the new product. ( 100 % clear profit )
SBTX market cap £40M, could make that annually if the new product take up rate is rapid. ( Croda are leading the cosmetics industry going green. )
Shares are very simple, just find any company that can grow super fast revenues , profits, and then dividends
Hi Kevin, I reread the checklist, it is really great: what is your source to find the number of analyst? What is your source to compare to the market and how to find the right market to compare?
Great article! I would be interested to know in which sector there are the most 100-bagger.
They come and go in all kinds of sectors. But if I had to choose, it needs to be a business model that can scale easily, and that has been software in the past...
Thank you for this great summary with guiding treshholds!
With pleasure!
Ok having done a 228 bagger and a 63 bagger look at my pick at 10p buying price (now 17P ) SBTX.
Why.?
A new green bio and sustainable anti ageing skin cream ingredient is about to be launched by CRODA ( FTSE 100 ) to replace today’s chemical based Matrixyl.
Croda are the largest supplier of anti ageing ingredients worldwide. Matrixyl sales run at £350 a year.
Tiny SBTX, ( who own the IP ) pick up double digit revenues for the new product. ( 100 % clear profit )
SBTX market cap £40M, could make that annually if the new product take up rate is rapid. ( Croda are leading the cosmetics industry going green. )
Shares are very simple, just find any company that can grow super fast revenues , profits, and then dividends
Good luck
Thanks for sharing. I'll take a look in the coming weeks
Net margin is 100% because SBTX says it will be cash flow positive from other parts of the business , thus the overhead base is covered.
That net margin could well be 13.5% of Croda sales
Put another way, profits could = today’s market cap in a very few short years.
£350M X 13.5%
Great work
Thank you Sir!
Nice work! Hoping the shares I bought in RKLB at $3ish bucks turn into a 100 bagger, already hit 10 bagger.
Rule of Log Baggers:
to replace rule of 72
i.
T
= Log [ baggers × (1 - MOS) ] ÷ Log [ (1 + Cagr) × (1 + DY) ÷ (1 - SBB) ]
T
= number of years required for the intended baggers
Cagr
= Growth Rate Ratio
DY
= Dividend Yield Ratio, Fully Reinvested at Intrinsic Value
SBB
= Share Buy Back Ratio, at Intrinsic Value
ii. If MOS, DY and SBB 0%,
T
= Log [ Baggers ] ÷ Log [ 1 + Cagr ]
Example:
T
= Log [ baggers × (1 - MOS) ] ÷ Log [ (1 + Cagr) × (1 + DY) ÷ (1 - SBB) ]
= Log [ 100 × (1 - 0.25) ] ÷ Log [ (1 + 0.15) × (1 + 0.02 ) ÷ (1 - 0.005) ]
= 26.2338309035 Years
If MOS, DY and SBB 0%,
T
= Log [ Baggers ] ÷ Log [ 1 + Cagr ]
= Log [ 100 ] ÷ Log [ 1 + 0.15 ]
= 32.9501014921 Years
Hi Kevin, I reread the checklist, it is really great: what is your source to find the number of analyst? What is your source to compare to the market and how to find the right market to compare?
No problem. Thanks for the comment. I may update the checklist in the coming months.
Never heard of that book. I'm adding it to my reading list. Thanks!