A share portfolio for a serious investor should be well planned and thought out. For example an older investor nearing retirement age should switch to a defensive portfolio that invests in established, low-risk, dividend-paying companies.
Below are seven stocks that are on my radar or in my portfolio — combined, they provide coverage of a number of industries. They may be worth consideration to an investor looking to take on more risk within their existing portfolio.
1. Newsat Limited (ASX:NWT)
Newsat is an emerging player in the telecommunications market. The company is about to go through a major transformational event, the launch of its first satellite. This should create a significant step change in earnings and margins.
2. Atlas Iron (ASX:AGO)
To be fair, I should admit that I am an iron ore bull. I have been for a while and I am yet to be convinced that the strong times are nearing an imminent end. Atlas has performed poorly against its peers, but from my research there is little justification for this underperformance, thus creating a buying opportunity. As production grows, the cost of production will fall and the margins will grow. I expect strong cash flows from this emerging powerhouse.
3. Mermaid Marine (ASX:MRM)
The recent sell-off following a major acquisition has created a buying opportunity. Mermaid is operating in a difficult sector but with the oil and gas prices remaining strong, I have faith that the share price will slowly climb back to above $3.50.
4. Applabs Tech Limited (ASX:ALA)
A unique business in a growing market. Applabs builds and funds new smart phone applications. This is a high-risk stock pick but if it can stumble across the next "Angry Birds" application, then the upside could be substantial.
5. Bentham IMF Limtied (ASX:IMF)
Listed ASX companies operating in the legal sector have been performing exceptionally well. IMF has underperformed versus the industry, however much of this may be due to a misunderstanding of its business model. If it can maintain its current settlement/win record than expect the share price to be re-rated in the coming year.
6. Starpharma Holdings Limtied (ASX:SPL)
A biotech company that has products in the market and more not far away is hard to find. Starpharma recently announced a commercial deal with a major Japan condom maker. It appears undervalued and has strong growth potential.
7. ISHS CHINA ETF (ASX:IZZ)
iShares FTSE China 25 provides shareholders with instant diversification with the fund attempting to follow the performance of a number of large listed Chinese companies. I generally believe I can match or beat the performance of a fund manager, however the red tape involved in investing overseas generally makes such investments too onerous for everyday investors. This is a great way to purchase a diverse set of stocks in an economy predicted to grow at a rate in excess of 7% per year.
Foolish takeaway
The above portfolio is a real mixed bag, and geared for growth but not without taking on considerable risk. I may be foolish to name stocks out of favour or those that don't receive the same coverage as others, however each stock listed here can bring something different to an investor's portfolio. Look to add these stocks to your watchlist and when you become more comfortable with their business, you may look to add these to your own portfolio.
