Are these 3 shares the greatest value investments on the ASX?

Here's why Coca-Cola Amatil Ltd (ASX:CCL), Ainsworth Game Technology Limited (ASX:AGI) and Senex Energy Ltd (ASX:SXY) offer such an exciting buying opportunity.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With recent data showing that term deposit rates are continuing to fall, investors can expect to see an increase in the total amount of funds invested in the ASX.

Depending on the size of the investor influx, it's debatable whether share prices will actually increase, but investors should be prepared for this eventuality.

I have today compiled a list of three shares offering the best value for money, one blue chip, one mid-cap growth share, and one speculative oil explorer.

Coca-Cola Amatil Ltd (ASX: CCL)

Coca-Cola's dramas have been well publicised in the media and its share price has suffered accordingly, falling to five-year lows over the past six months.

While stiff competition and discounting practices are unlikely to go away anytime soon, the strategic review flagged by CEO Alison Watkins is likely to deliver a leaner, meaner Coca-Cola and the company continues to pay that juicy 5% dividend.

It is likely that Coca-Cola will take some time to return to profit growth, and it is possible that the strategic review will occasion several large one-off restructuring expenses which will further decrease paper profits this financial year.

However I believe the company is likely to continue paying its 5% dividend, and investors now are likely to reap substantial benefit in future years.

Ainsworth Game Technology Limited (ASX: AGI)

Ainsworth has been a repeat visitor to my articles on shares hitting 52-week lows.

The latest annual report, puzzlingly, saw the share price drop after profit growth of 18% in the year.

I can only conclude that investors were disappointed with what is still outstanding growth, with more expected this financial year.

Ainsworth was granted numerous licenses to sell its gaming machines in various locations last year and overseas expansion has been backed up by impressive domestic growth.

Better yet, the company has only barely dipped its toe in markets like South America, which leaves enormous room for potential growth if Ainsworth's products are as successful there as they have been everywhere else.

Senex Energy Ltd (ASX: SXY)

Based on company targets, Senex could nearly triple in size over the next three years.

With management targeting significant reserve increases as well as an increase in production from 1.4 million barrels to 3-5 million barrels by FY2018, investors could be in for quite a ride.

High capital expenditure as well as the usual vagaries of exploration, weather, market fluctuations and so on make this a speculative investment only for risk-tolerant investors, but the payoffs could be quite spectacular.

Unfortunately I don't own Senex or Ainsworth yet! – but I am a proud Coca-Cola owner and the other two are at the top of on my radar.

Buying the right shares at the right time is a big part of my investment strategy, but returns gained by picking up discounts are far outweighed by the rewards delivered by holding for the long term.

The Motley Fool is all about growing wealth by picking strong companies that are likely to deliver growing earnings and dividends over time.

That's why it's written a free report dedicated to helping Australian investors invest better.

It's entitled '10 Steps to Making $1 Million in the Market', I've read it more than seven times now and I can comfortably say it's an interesting read and packed full of useful information – whether you're completely new to the market or have a little more experience under your belt.

If you're interested, you can access it by clicking on the link below and entering your email address – it takes less than 30 seconds – and we'll send it to you, completely FREE!

Motley Fool contributor Sean O'Neill owns shares in Coca Cola Amatil.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »