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.
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