Mid-caps stocks offer the perfect combination of risk vs reward. They're usually large enough and have enough revenue that you don't have to worry about them falling large amounts overnight, and yet are still small enough that they can offer massive growth over the short term.
The latest pullback in the Australian share market (around 6% at the time of writing) has presented opportunistic investors with a few ripper stocks to consider at cheaper prices. Here are eight mid-cap stocks that I love:
Childcare centre collector G8 Education Ltd (ASX: GEM) is down 9%.
Homeloan and financial planning franchisor Mortgage Choice Limited (ASX: MOC) is down 21%.
Ozforex Group Ltd (ASX: OFX) shares are 10% lower than in the middle of the year.
Fast food group Collins Foods Ltd (ASX: CKF) shares are 8% lower.
HR Group Chandler Macleod Group Limited (ASX: CMG) is offering a massive dividend now that it's 11% cheaper than in late August.
Carsales.Com Ltd (ASX: CRZ) shares have fallen 12% in four short weeks!
Myer Holdings Ltd (ASX: MYR) has been clobbered 20% following a less-than-impressive earnings report in early September.
Job website provider SEEK Limited (ASX: SEK) has fallen nearly 7% despite projecting extremely impressive growth numbers in the coming year.
Hold on!
The obvious counter point to the falls above is that presumably they all rose in the lead up to falling so we should have just bought before they went up, right?
Obviously yes, just like we should have all bought Flight Centre Travel Group Ltd (ASX: FLT) shares at $3.74 in 2009, however it's extremely difficult to time the market and so watching share prices for quick dips can be a great way to pick up quick profits.
Learn from the Best
Warren Buffett made a huge amount of money during the GFC by investing in companies that had fallen in value below the level that he considered they were worth. By investing during those tough times Buffett substantially increased his personal fortune when everyone else was losing their retirement savings.
