It's been an agonising few weeks for investors. The S&P/ASX 200 (INDEXASX: XJO) is down nearly 7% and it's been near impossible to avoid the pain with almost every sector down heavily.
However, this could actually be the event that cashed-up investors have been waiting for. Shares of some of Australia's best companies have fallen considerably in price giving us a fantastic opportunity to stock up.
One of the better buys right now appears to be Collection House Limited (ASX: CLH). The stock has performed strongly for shareholders in years gone by and recently recorded its seventh consecutive year of growth. However, with the debt collection agency expanding office space to accommodate an additional 120 staff members, it seems that this growth story could just be beginning…
The stock has fallen more than 11% since late August to be trading at $2.04 while it also offers a grossed-up 5.6% dividend yield.
Also falling from its perch in recent weeks has been Greencross Limited (ASX: GXL), a leading provider of veterinary services in Australia. Marked by some as a "blue-chip of tomorrow", the company has been busy acquiring clinics and pet retailers across Australia with the aim of 20% market dominance – up from today's estimated 7.5% share of the market. While the stock was starting to look a little pricey, it has recently fallen nearly 14% to be sitting at just $9.30 a share. While it is still not a 'bargain', I still expect shareholders will be handsomely rewarded in the long run.
Cashed-up investors should also look towards leading discount retailer JB Hi-Fi Limited (ASX: JBH), which has recently been thrown in the bargain bin. Although the retail sector is facing strong headwinds, JB Hi-Fi is still growing revenues and earnings at a reasonable rate and should benefit from the rollout of its new 'HOME' format stores. At $15.18 per share, the stock has fallen nearly 30% since the beginning of the year, while it is down 24% since early August.
Before you make your move on any of these three stocks, however, I urge you to consider just one more…
