If you have some spare cash on the sidelines and are looking to buy shares, the next week or so could be a great time to start to put that money to work.
The Australian share market has already pulled back around 4.6% over the past six trading sessions thanks to concerns around 'Brexit' and I think this has created quite a few buying opportunities for investors.
If I had $15,000 to invest, I would spread it evenly across the following three shares:
Blackmores Limited (ASX: BKL)
At around $135 per share, Blackmores is looking like pretty good value and if it stays at these levels until next week, I will look to add it my portfolio.
The company delivered exceptionally strong growth in the third quarter and, although I suspect it may have slowed slightly more recently as a result of new Chinese regulations, I think the vitamin company will still deliver a pretty strong full year result.
Beyond this year, I expect Blackmores to expand its reach further into Asia and it will benefit greatly from having already established distribution channels in the region.
The shares have now fallen 38% since the start of 2016 and trade on a forward price-to-earnings (P/E) ratio of around 23.
Sirtex Medical Limited (ASX: SRX)
Sirtex shares have been beaten up lately and have lost more than one-third of their value since the start of 2016.
The biotechnology company disappointed the market at the start of June with a downgrade to its full year dose sales growth guidance. Sirtex had previously expected sales to grow at around 20% but a number of factors will see the company grow sales between 15%-17%.
Although this is still a very strong number, Sirtex's above average valuation meant the shares were always going to be under pressure.
Importantly, management has stated that a number of the factors impacting on sales were temporary in nature and that its long term potential remains unchanged.
As a result, I would be comfortable picking up a small parcel of shares now and then waiting to see what the full year results bring in August.
Gateway Lifestyle Group (ASX: GTY)
Gateway Lifestyle is an alternative way to invest in the ageing population thematic.
The company specialises in affordable living solutions for retirees with a business model that is becoming more attractive as land prices continue to increase.
Unlike other retirement community operators, Gateway Lifestyle only requires the resident to purchase the house with the company maintaining ownership of the land from which it receives recurring rental income.
Many of its communities are located on the east cost of Australia in popular retirement destinations which means demand for its housing will generally be high.
Gateway Lifestyle expects to exceed its FY16 prospectus forecast and to deliver underlying earnings per share of 17.2 cents. This means the shares are currently trading on a P/E ratio of around 16 – an attractive valuation for a company that should enjoy a strong tailwind for many years to come.
