It's not too late to get on board some of the more recently listed companies which have undertaken initial public offerings (IPOs) in the past year or so.
Getting into a company with solid growth prospects soon after it lists can turn out very well in the long run for investors with a buy-and-hold mentality. Of course there are also plenty of IPOs that don't turn out well! Just take a look at the dismal share price performances of recent listings such as Vocation Ltd (ASX: VET) and McAleese Ltd (ASX: MCS). These two stocks have dropped 65% and 77% respectively since they listed.
So while it is important to remain vigilant and avoid the below investment grade offerings, here are a few that could be worth considering.
Legal services consolidator Shine Corporate Ltd (ASX: SHJ) has consensus earnings per share (EPS) growth expectations of 19.1% and 13.9% in FY 2015 and FY 2016 respectively. The stock is trading on a FY 2016 price-to-earnings (PE) multiple of 13.6x based on EPS of 19.4 cents per share (cps).
Spotless Group Holdings Ltd (ASX: SPO) is forecast to achieve a big improvement in EPS in FY 2015 followed by 14.3% EPS growth in FY 2016. Based on the FY 2016 EPS of 14.4 cps, the PE multiple of this major provider of outsourced facility services is 13.5x.
Ozforex Group Ltd (ASX: OFX) has carved out an enviable position in the provision of foreign exchange services. The company is forecast (according to consensus data provided by Morningstar) to grow EPS at 5.6% in FY 2015 and 19.8% in FY 2016. Based on FY 2016 EPS of 11.3 cps, the stock has a PE of 21.4x.
Leading manufacturer of fast moving consumer goods, Asaleo Care Ltd (ASX: AHY), owns leading hygiene brands including Sorbent and Libra. With a financial year ending in December, forecast EPS growth for FY 2015 is 14.1%. If Asaleo can meet this forecast, the group will earn 12.4 cps, implying a PE of 14.7x.
