How to buy top ASX stocks on the cheap

Mayne Pharma Group Ltd (ASX: MYX) has been in the news lately, after announcing a US$652 million acquisition. The share price went ballistic – jumping more than 20% on the day.

Lithium hopefuls and producers have also been in the news – not surprisingly after their share price rocketed up hundreds of percent in the past year alone.

General Mining Corp Ltd (ASX: GMM) was by far the ASX’s best-performing share in 2015 – rising 5,000% as lithium prices and electric cars dominate the news. Orocobre Limited (ASX: ORE) is another lithium producer – its share price is up 136% in the past 12 months.

And then you have athlete tracking products company Catapult Group International Ltd (ASX: CAT) – which recently announced not one but two acquisitions, which should double revenues and propel earnings into positive territory.

But did you know there’s an easy and cheap way of gaining exposure to all of these companies and 70 others?

Listed investment company or LIC, Contango Microcap Ltd (ASX: CTN) lists the above three companies in its top 10 holdings. Mayne Pharma happens to be its largest holding (7.2% of the fund) by a long way – more than double its second-largest holding, gold miner Saracen Mineral Holdings Limited (ASX: SAR).

Investors can buy shares in Contango Microcap for around $1.06 currently. However, Contango’s net asset value per share was $1.205 before tax, or $1.11 after tax.

In other words, investors are getting a piece of Mayne Pharma, General Mining and Catapult all at a discount.

Foolish takeaway

The discount between the NAV and the share price can persist, but what is interesting about Contango is that its current holdings could be huge winners – which could see Contango’s NAV soar and drag its share price along.

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Motley Fool writer/analyst Mike King owns shares in Contango Microcap. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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