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 few months.
Getting into a company with solid growth prospects soon after it lists can be exceptionally rewarding for investors with a buy-and-hold mentality.
Of course there are also plenty of IPOs that don’t turn out well!
Consider, for example, the dismal share price performances of vocational training company Vocation Limited (ASX: VET) whose share price has declined around 94% since it listed in December 2013!
So, while it is important to remain vigilant and avoid the low grade offerings, here are a few that could be worth considering.
- Retailer Baby Bunting Group Ltd (ASX: BBN) is up over 16% since first trading on the ASX in mid-October. With many parents waiting until later in life to have children – which means parents with higher disposable incomes – coupled with a store roll-out program, spending at Baby Bunting stores look sets for further growth.
- Listed investment company (LIC) Platinum Asia Investments Ltd (ASX: PAI) is managed by highly regarded funds management firm Platinum Asset Management Limited (ASX: PTM). With Asia a bright spot in terms of global economic growth rates and considering how over-exposed to domestic equities most Australian-based investors are, this newly listed LIC could be a low risk and simple way to gain exposure to the Asian region.
- Link Administration Holdings Ltd (ASX: LNK) is the largest of the three IPOs mentioned here with a current market capitalisation of $2.7 billion. While its share registry operations compete with Computershare Limited (ASX: CPU) much of its business is skewed towards Funds Administration where it sees significant growth opportunity.
These 3 stocks could be the next big movers in 2020
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Motley Fool contributor Tim McArthur has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. 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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