We asked our contributors to pick their favorite ASX stocks to buy this month. Here are their top ideas.
Ryan Newman: Cover-More Group Limited (ASX: CVO)
Cover-More Group Limited, which debuted on the ASX late last year, is Australia's largest travel insurance company with an estimated 46% share of the local market. Although there have been a number of tragedies in the air recently, it is expected that the high level of international travel will be sustained – particularly with the Aussie dollar remaining strong and airfares remaining low – and Cover-More Group Limited is primed to benefit.
Strong growth is anticipated in the coming years, so now is an excellent time to buy, particularly with the stock having pulled back a whopping 25.1% in the last two months.
Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned (but might very soon).
Andrew Mudie: Global Health Limited (ASX: GLH)
Global Health Limited is in the business of providing software solutions to medical providers. The share prices has rocketed from 5 cents to around 52 cents in 12 months but has pulled back from a recent high of 80 cents.
The company has forecast a 16% rise in profit, 32% increase in net profit and 10% increase in earnings per share for the year, putting it on a price-to-earnings ratio of under 12. This rapidly growing company looks cheap at current prices over the long term.
Motley Fool contributor Andrew Mudie owns shares in GLH. You can find Andrew on Twitter @andrewmudie.
Regan Pearson: Newsat Limited (ASX: NWT)
Newsat Limited is a high-risk, high-reward satellite company planning to launch a new satellite, Jabiru-1, in 2015. The satellite is expected to produce US$3 billion in value over its life and will leverage demand for internet, voice, data and video communications.
Shares in Newsat plummeted in June after the company announced a 19% fall in revenue for H1 FY2014, but the company can now be picked up for 9 times diluted FY2013 earnings and purchases by company directors act as a vote of confidence.
Newsat comes with a big chunk of debt, which contributes to risk, but it includes very favourable terms on around 3% interest.
Motley Fool contributor Regan Pearson does not own shares in Newsat Limited.
Sean O'Neill: Cromwell Group (ASX: CMW)
Cromwell Group is an Australian Real Estate Investment Trust (A-REIT), managing $3.5 billion of assets in Australia and making a foray into New Zealand through its purchase of a 50% stake in NZ property manager Oyster Group.
Oyster Group manages a portfolio worth NZ$650, and looks likely to grow its business thanks to NZ's strong economic position. Most appealingly, Cromwell pays its dividends quarterly for a total yield of 7.4% at today's prices.
It is an attractive purchase at today's prices and an outright steal if you can pick it up anywhere close to Morningstar's intrinsic value estimate of $0.79 per share – $0.21 below today's prices.
Motley Fool contributor Sean O'Neill doesn't own shares in Cromwell Group.
Tim McArthur: Super Retail Group (ASX: SUL)
With a retailing empire of over 600 stores and brands including Super Cheap Auto, Rebel Sport, BCF and Ray's Outdoors, Super Retail Groupwill be familiar to many investors.
The problems facing the retail sector are also familiar – they range from lacklustre consumer spending to increased competition from online retailers. Luckily for shareholders, Super Retail has strong management with a track record of delivering value to shareholders. The team is led by Managing Director Mr Peter Birtles, who has been with the company since 2001.
Since listing on the ASX in 2004, the total shareholder return has been a spectacular 18.9% per annum. A trading update in June provided full-year guidance for a 5% increase in net profit after tax.
With the share price down 26% in the past 12 months due to weaker than expected sales growth and negative market sentiment towards the retail sector, the stock trades on an appealing-looking forecast FY 2015 price-to-earnings ratio of 15.7 and fully franked yield of 4.1%.
Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.
Owen Raszkiewicz: ADMEDUS FPO (ASX: AHZ)
This is the second time I've made Admedus (formally Allied Healthcare Group) my top stock pick. Admedus is a small-cap diversified biotechnology/healthcare company with its headquarters in Perth. Currently, the company is focused on the marketing and selling of its cardiovascular tissue regeneration technology, Cardiocel.
Since receiving FDA and CE Mark of approval, it appears to be only a matter of time before sales of this innovative technology begin to have a significant impact on the company's top line. Admedus is also pursuing a promising vaccines program lead by renowned immunologist Professor Ian Frazer.
Motley Fool contributor Owen Raszkiewicz owns shares of Admedus FPO.
Tom Richardson: Tassal Group Limited (ASX: TGR)
Salmon is a food product with limited supply and growing demand, which means salmon farmer Tassal Group Limitedlooks like an attractive opportunity with plenty of pricing power.
It intends to continue capital expenditure plans over the next five years to grow its production capabilities and is already enjoying the benefits of a more focused cost structure.
Selling for $3.90, Tassal trades on 16 times FY 2015's projected earnings with a 2.7% dividend yield. I expect it to deliver some good numbers when it reports full-year results on August 19.
Motley Fool contributor Tom Richardson has no financial interest in Tassal Group.
Aryan Norozi: M2 Group (ASX: MTU)
Telecommunications provider M2 Group is the owner of successful brands such as Dodo, Primus and Eftel. It has had no problem growing earnings in the past decade and future growth prospects look enticing.
With negotiations of the Telstra Wholesale agreement successfully completed, M2 is likely to experience wider profit margins, benefiting both commercially and economically. Its entrance into the power and gas bundling business also remains an exciting growth prospect and given its exceptional acquisition track record, M2 is more than capable of replicating its previous success.
Despite recent gains, M2 trades on a cheap price-to-earnings ratio of 11.4 and offers a 3.8% fully franked dividend yield. I think M2 has it all and screams a buy at current prices.
Motley Fool contributor Aryan Norozi does not own shares in any of the companies mentioned.
