Why now is the time to buy Ozforex Group Ltd

Following a heavy sell-off in shares of Ozforex Group, now is the perfect time to buy shares in this long-term growth stock.

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Shares in Ozforex Group Ltd (ASX:OFX) were smashed by the market last week following the release of their FY14 full-year results with the shares down 12%. This is despite the company increasing net profit by 33% and beating guidance. While the earnings growth was impressive, active client numbers were lower than forecast and staff costs were also higher, consequently the market punished the shares.

With the share price currently sitting at $2.66, a long way from its all-time high of $3.50 reached in March of this year, now is the perfect time to accumulate shares in Ozforex. I believe Ozforex will grow strongly over the long term as a result of the following:

1. Although the market was disappointed the company did not meet its target of 123,000 active clients, the company still managed to increase active clients by an impressive 31% to 120,500, highlighting the impressive long-term growth potential of the business.

2. Oxforex offers a simple and efficient method of performing foreign exchange transactions and at a substantially lower cost than that charged by banks and other foreign exchanger dealers. Customers benefit from being able to transact at any time, with a faster settlement time than that offered by the banks.

3. Oxforex’s potential market is huge and will continue to grow over the long term. The company will benefit from its first-mover advantage in Australia and look for growth opportunities in the U.S. market.

4. As the business continues to grow in size and scale, it will see cost savings and generate goodwill from loyal customers.

This is a business that can grow substantially over the next 10 years as it continues to take market share away from the banks. The current share price looks cheap to me and I think it looks a great long-term buy.

Want more growth stocks? Than you had better take a look at these 3 stocks. 

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Motley Fool contributor Bradley Murphy owns shares in Ozforex Group mentioned in this article. 

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