4 Christmas crackers for your portfolio

On the 2nd day of Christmas, Livewire gave to me…
4 Christmas crackers under $30

Christmas can be an expensive time of the year, just like certain parts of the market (*ahem* big banks and big tech). But just as it’s possible to budget and still deliver on that festive magic, you can also take the same approach to your portfolio.

Think of it as hunting for the elusive Christmas cracker that is both affordable and satisfying with a decent bang and treat, ignoring the terrible jokes and ill-fitting paper hat.

Last year, I asked fund managers to pick a high-growth option under $30/share, and they offered a range of picks, such as telco Tuas (ASX: TUA), which has grown over 10% since then, to lithium miner Wildcat Resources (ASX: WC8), which jumped 35.56%. 

How’s that for going off with a bang?

Equities

5 Christmas Crackers: the “cheap” stocks with big growth potential

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This year, I broadened the premise.

Fund managers could still suggest a high-growth Aussie or global option, but they could also consider the idea of ‘cracker’ in a different way. Perhaps the pick under $30/share was a ‘cracker’ because it was a consistent compounder or undervalued for its quality.

The following experts joined in the fun:

• Arms Rosenberg, Minotaur Capital
• Ben Richards, Seneca Financial Solutions
• Henry Jennings, Marcus Today
• Shawn Hickman, Market Matters

Here are your Christmas Crackers of 2025 – some of them will even cost you mere dollars per share.

Prices are as at 9 December, and please do your research before investing in any of these stocks – they may not suit your portfolio, needs or goals.

#1 - Cover Corporation (TYO: 5253)

Armina “Arms” Rosenberg, Minotaur Capital
Market Capitalisation: ¥101.36 billion ($A981.27m)
Price: ¥1,562 (roughly $A15)

Cover Corporation is a talent agency for VTubers (streamers who use avatars) and was listed on the Tokyo Stock Exchange in March 2023. Rosenberg describes it as “the kind of weird business markets love to dismiss, right up until the unit economics become too big to ignore".

“The business has demonstrated exceptional fan monetisation capabilities across streaming, merchandise, and live events, with revenue per VTuber now exceeding $3 million annually,” she says, noting that while investors view it as a niche streaming agency, she sees potential for a global IP business with expansion opportunities in North America.

Why invest? Rosenberg explains:

“What makes COVER compelling today is the mismatch between near-term noise – due to graduations (people leaving their agency), US build-out, and temporary margin compression – and the underlying trajectory. The stock has also declined 36% over the past year, creating a buying opportunity for investors.

FY26 is intentionally an investment year as the company expands its US operations and strengthens its merchandise manufacturing. Management’s guidance has been consistently conservative, and we expect that pattern to repeat.

The business is growing 20-30% and, once through this investment cycle, has clear operating leverage potential. We believe today’s valuation misprices this outcome and that the company will re-rate from VTuber agency to global IP franchise.”

#2 - XRF Scientific (ASX: XRF) 

Ben Richards, Seneca Financial Solutions
Market capitalisation: $260.96m
Price: $1.825

XRF Scientific manufactures equipment and chemicals for the scientific, analytical, and mining industries, primarily focused on X-ray fluorescence (XRF) technology and solutions for XRF sample preparation, including fusion equipment and labware.

Richards notes that, “the recent market volatility has led to quality stocks selling off indiscriminately, creating selective opportunities in companies such as XRF.”

The case for XRF in Richards’ words:

“XRF has compounded earnings at 26% p.a. over the last 5 years, versus the ASX200's growth rate of 8% p.a. over the same period. Despite this, XRF trades on a P/E of just 21x. 

With a market cap of just $268 million, we see XRF's growing scale as attracting a new pool of investors, including institutional investors that are only now hearing XRF's story for the first time.

XRF has taken market share from international competitors and now has cyclical tailwinds. Commodity prices are rising (led by gold & copper), explorers are raising capital hand over fist (exploration financings +123% YoY in October per CapIQ), and sample volumes at laboratories are inflecting higher (per ALS result in November) - all positive leading indicators for XRF.”

#3 - Dimerix (ASX: DXB)

Henry Jennings, Marcus Today
Market capitalisation: $330.22m
Price: $0.55

The clinical-stage biopharmaceutical company offers drug candidates for inflammatory diseases, including kidney and respiratory diseases. As Jennings highlights, “the good thing about biotechs is that one trial, one deal, can change the game completely.”

He compares Dimerix to Neuren’s success over the past few years and believes 2026 could be DXB’s year.

Time to jump in? Jennings explains:

“DXB is targeting patients suffering from and at risk of Focal Segmental Glomerulosclerosis (FSGS). Trials supporting its drug, DMX-200, have been positive to date, and we are due to get more results, opening up potential approvals, whilst in the background, it continues to complete trials.

DMX has done a number of royalty deals (not unlike NEU), with milestone payments and royalties down the track. The total to date is worth around $1.4bn, and importantly, it has $49m in cash still from earlier payments.

The current $300m valuation is extremely cheap if the trials lead to early approvals and trigger the milestones. NEU is now a $2.4bn company. 

DXB is a standout. Not for the faint-hearted, as trials can fail, but the risk-reward currently and the progress made so far, indicate 2026 could be a good one for DXB and DMX-200.”

#4 - GQG Partners (ASX: GQG)

Shawn Hickman, Market Matters
Market Capitalisation: $5.28B
Share price: $1.785

The global boutique asset management firm has had a tough year, shedding US$1.4 billion from its portfolios in July alone. It has a more defensive approach and moved its portfolios away from big tech earlier in the year. More recently, it has increased holdings in five Adani Group companies to access opportunities it sees in emerging markets.

Hickman believes it’s “a buy at current levels for income and medium-term growth potential” – it can turn its fortunes around.

The case in Hickman’s words:

“The business manages over US$167bn and is forecast to earn US$464m NPAT in FY25, with net cash of US$117m and a market cap of A$5.3bn. It trades on 7.4x FY25 earnings and is set to yield 12.4% fully franked, although recent portfolio performance has been weak, with three-year returns well below the benchmark.

The underperformance reflects a defensive stance and reduced exposure to big tech. While this has hurt returns, we respect their conviction and expect performance to recover. Outflows remain manageable, and CIO Rajiv Jain has a strong long-term track record.

Overall, we view GQG as a deep-value turnaround story for 2026, offering defensive qualities and an attractive yield above 10%.”

So with that food for thought, it’s over to you – what is your Christmas cracker under $30/share for 2026?

And, in the spirit of Christmas crackers and terrible jokes, here’s a clean one you can tell in front of children.

Why doesn’t Santa pay parking fees for his sleigh?
It’s on the house.