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Your Best Shot At A 10-Bagger

To maximise your chances of achieving a 10-bagger in 10 years without throwing trying to hit every single ball for six, focus on smaller companies that have:

- strong balance sheets;

- strong cash flows; and

- strong growth prospects.

One such company could be blinkx (LSE: BLNX). According to Google Finance, this £170 million company “has an index of over 35 million hours of searchable video and more than 530 media partnerships, including national broadcasters, commercial media giants, and private video libraries”.

Analysts at Daniel Stewart recently forecast 2012 revenues at blinkx of £79.5 million and EPS of 4.5 pence, putting the company on a 2012 P/E of 13.7. This fast growing rising star of the UK internet industry is the type of company that could just turn out to be a 10-bagger in the years ahead.