It happened quickly didn't it?
All of a sudden commodities got really ugly.
Once the oil prices entered freefall, the twelve month commodity price chart started to look something like this.
It's a fair bet that a few of your shares have entered the red over the past couple of months too.
I personally own Senex Energy Ltd (ASX: SXY) and Rio Tinto Limited (ASX: RIO), both of which are looking a little sad at the moment.
Even my token retailer, Reject Shop Ltd (ASX: TRS) which I bought to diversify away from commodities, has lost 40% since I bought it back in February.
Every day brings new opportunities however, and these are three of the companies I've got picked to turn it around.
Lifehealthcare Group Ltd (ASX: LHC)
Just as Motley Fool contributor Regan Pearson wrote at the end of December, Lifehealthcare stands out due to its low price-to-earnings (P/E) equation, history of growth, and high margins.
The market has been cool on this one, and it's recently slipped from highs of $2.40 to today's price of $2.05, below the $2.12 I paid for it and not far from its price at launch. The company also pays a 4.6%, fully franked dividend.
Price invariably follows quality and with a low number of shares on issue (42.5 million), Lifehealthcare could shoot up rapidly as future positive results roll in and demand for its shares improves.
FlexiGroup Limited (ASX: FXL)
Similar to Crown Resorts, below, FlexiGroup looks to have been oversold after shareholders were apparently disappointed with a one-off loss provision worth $2.5 million on a photographic equipment business that is no longer viable.
Despite this FlexiGroup still expects to grow its overall profit to $90-91 million before tax this financial year, some 7% higher than the previous year.
With share prices hovering around 52-week lows and dividend yields of 5.9% fully franked, FlexiGroup has a lot of potential.
Crown Resorts Ltd (ASX: CWN)
Investors have been selling Crown Resorts after the company revealed it was paying $250 million to the Victorian State Government in return for removal of the 'super tax' on VIP gamblers and the ability to install additional pokie machines and gaming tables.
With the company targeting 4% revenue growth every year and several recent exciting announcements regarding an online betting joint venture and a new five-star hotel in Melbourne, Crown looks to have been oversold and should deliver some great results to investors over the next decade.
With commodities looking so ugly, and potential for yet another drop in our interest rates, the stage is set for a huge influx of money into reliable, dividend-paying, growth businesses.
