The month of May wasn't smooth sailing for all companies on the S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO).
Several well run companies with strong long-term growth prospects, including OzForex Limited (ASX: OFX), QBE Insurance Group Ltd (ASX: QBE) and Donaco International Ltd (ASX: DNA), were sold down by the market, creating an opportunity for canny investors.
Here's why you should consider buying them this month:
OzForex Limited (ASX: OFX)
OzForex shares were savaged more than 20% in May when the company announced its full year result. The company beat prospectus profit estimates and reported a huge NPAT margin of 22% for the full year, but it seems investors were unimpressed with higher than anticipated costs.
The higher costs should support continued growth and OzForex maintains a positive outlook going forward. At the current share price of $2.77 this could prove to be a great opportunity to buy.
QBE Insurance Group Ltd (ASX: QBE)
Shares in QBE only fell slightly in May, but are now at $10.90 – not far from the company's 52-week low.
Investors are still uneasy about QBE after being stung multiple times in the last few years, but with major catastrophes now long behind it, and the restructure of U.S operations, QBE should finally be positioned to produce a significant improvement in performance in the year ahead.
Donaco International Ltd (ASX: DNA)
Donaco International shares have swung back on my 'buy' radar after they fell as much as 28% in May.
Revenues and cash flows are likely to explode in the next 12 months now that the casino resort operator has opened its new 5-star, 428-room Lao Cai international hotel and casino in Vietnam.
Shares were pushed down over fears that political tensions between Vietnam and China may keep away the mostly Chinese visitors. However the company updated the market to advise business was at normal levels.
