The Motley Fool

Top stock picks for June

We asked our contributors to pick their favourite ASX stocks to buy this month. Here are their top ideas.

Ryan Newman: Catapult Group International Ltd (ASX: CAT)

Catapult Group is by no means a household name, but if you like sports you’re bound to have seen its products around.

The business is a global sports analytics company which was developed out of the Australian Institute of Sport (AIS) and its products are used in AFL, rugby league, rugby union and cricket. The company develops specific algorithms which help to provide real-time data to monitor and measure the performance of athletes on game day. It’s still early days for the company (market capitalisation of just $41 million), so it’s a risky play, but it could also be very rewarding over the long term.

Motley Fool contributor Ryan Newman does not own shares in any company mentioned.

Andrew Mudie: iCar Asia Ltd (ASX: ICQ)

I’m a huge fan of the model of expanding rapidly into an underdeveloped market in order to grab market share before your competitors know what’s going on. iCar has been doing just that in Malaysia, Indonesia and Thailand by developing and purchasing leading, but underperforming, online car sale networks to take a leading market share in all three territories. The group is yet to post a profit but with the expertise of Carsales.com Ltd (ASX: CAR) helping it expand, I believe it’s only a matter of time before it becomes an online powerhouse in Asia.

Motley Fool contributor Andrew Mudie owns shares in iCar Asia Ltd.

Peter Stephens: FlexiGroup Limited (ASX: FXL)

Like it or not, interest rates appear to be on their way down. As such, finance solutions provider FlexiGroup is expected to increase its bottom line at an annualised rate of 9.4% over the next two years, as demand for new loans is set to increase.

Despite this, FlexiGroup trades on a price to earnings (P/E) ratio of just 12.1, versus 17.2 for the ASX and 14.6 for the wider diversified financial sector.

Motley Fool contributor Peter Stephens has no financial interest in FlexiGroup.

Regan Pearson: ResMed Inc. (CHESS) (ASX: RMD)

With many of the best quality companies on the ASX looking increasingly expensive I view the recent sell down of ResMed as an attractive buying opportunity. As I noted last month, the fall in response to an aborted medical trial should have little impact on the company’s long-term earnings. There was no fault in ResMed’s products and there will be limited (if any) brand damage.

ResMed continues to have long-term tail winds with aging populations and growing heath care spending which will propel earnings and dividend growth, supported by the company’s share buy-back program.

Motley Fool contributor Regan Pearson does not own shares in ResMed Inc.

Matt Brazier: Tamawood Limited (ASX: TWD)

Tamawood has recently announced its intention to pay a fully franked dividend of 25 cents this year. This equates to a dividend yield of 7.1% based on Friday’s closing price of $3.40, or 10.1% grossed up. Furthermore, there is reason to think the payout will grow substantially over coming years.

Having traditionally focused on Queensland, Tamawood is expanding its house building operation to Victoria, New South Wales and South Australia, where it plans to establish multiple franchises under its well-regarded Dixon Homes brand. The expansion requires little in the way of investment and so dividends will not be affected.

Motley Fool contributor Matt Brazier owns shares in Tamawood.

Tom Richardson: Sirtex Medical Limited (ASX: SRX)

Another re-recommendation from me as I still like the prospects of this cancer treatment business to expand the sales of its SIR Spheres microspheres product in the treatment of liver and metastatic colorectal cancers among others.

The business recently presented the results of its SIRFLOX trial at the American Society of Clinical Oncology conference and the evidence suggests that medical professionals may now be persuaded to use the treatment on a wider basis. Underlying sales are also growing well and supported by a strong management team this company’s potential means it looks one for the future.

Motley Fool contributor Tom Richardson owns shares in Sirtex Medical. 

Joshua Anderson: Ozforex Group Ltd (ASX:OFX):

Shares in OzForex tumbled last week as investors reacted to the company’s full year profit announcement. Net profit was $24.77 million in 2014, up a massive 52% on the previous year. This number illustrates the growth trajectory of the company and I believe investors have overreacted in selling down shares. The market’s short-term thinking provides savvy investors with a great buying opportunity for a company with a lot of potential.

Joshua Anderson does not own shares in Ozforex Group Ltd.

 

Sean O’Neill: Woolworths Limited (ASX: WOW)

Blue chips are getting hard to find at decent prices. The most obvious contender is Woolworths, thanks to its defensive income and reduced share price. Investors are right to be worried about both the hardware and grocery businesses, but I don’t see anything that can’t be turned around.

Woolworths has a quality portfolio of assets and none of its business troubles are terminal, or the result of competitor Wesfarmers attaining a match-winning advantage. With room for recovery and offering its best dividend yield in nearly 10 years, Woolworths is my top stock pick for June.

Motley Fool contributor Sean O’Neill doesn’t own shares in Woolworths Limited.

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The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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