Want to spice up your portfolio with some high-growth potential?
Below, I'll show you how…
But first, a word of caution…
If you're preparing to invest in growth stocks, it's essential you have a well-diversified portfolio, with a majority of your funds in defensive companies as well as a portion in cash. My cash target level is around 33%.
1. Shine Corporate Ltd (ASX: SHJ) is a $470 million law firm which has its two founders as its largest shareholders (24.73% each). Since listing 18 months ago, Shine's share price is up 87%. However the long-term future of the firm is looking as bright as ever, with shares trading at a smidgen under 18 times earnings, it appears great value.
2. NetComm Wireless Ltd (ASX: NTC) is a more speculative investment then Shine but has much larger upside potential. The technology minnow is focused on delivering advanced broadband and wireless machine-to-machine (M2M) devices to big business and telecommunication companies throughout the world. In FY14, M2M accounted for 51% of revenues, up from 20% a year earlier.
3. Affinity Education Group Ltd (ASX: AFJ) is a childcare centre owner and operator. Its shares only listed on the ASX 11 months ago, but are already up 24%. Like its peers, Affinity is pursuing an acquisitive growth strategy. As a result investors who put their faith in the business must be comfortable that Affinity's management adhere to prudent investment criteria and maintain adequate balance sheet fundamentals.
4. Money3 Corporation Ltd (ASX: MNY) is a provider of payday and small-secured loans to individuals. The group has significant insider ownership by directors and senior management. Although the market place is competitive, Money3's profits have been growing rapidly on the back of an increasing store count and online application capability.
Buy, Hold or Sell
