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Should you buy Amaysim Australia Ltd, Pact Group Holdings Ltd and Spark Infrastructure Group today?

Listed investment company (LIC) QV Equities Ltd (ASX: QVE) recently provided shareholders with an investor update.

QV Equities is a $200 million portfolio managed by the highly regarded funds management group Investors Mutual.

Amongst the appealing attributes of QV Equities is not just the long-term track record of its manager (which has a total of over $5 billion in funds under management) but also the scaled fee structure which includes no performance fee, the portfolio’s focus on stocks outside of the largest 20 ASX-listed companies and the current 21% cash holding.

Here are three stocks which Investors Mutual singled out as portfolio holdings which it believes can “self” generate earnings growth:

  1. Amaysim Australia Ltd (ASX: AYS) is a branded reseller of mobile network SIM cards. The company offers customers appealing deals such as no lock-in contracts which in turn have led to industry-leading customer satisfaction levels. Amaysim has been growing its market share and is currently trading on a price-to-earnings (PE) ratio of around 17.7x and with a yield of 4.5% (according to the QV Equities presentation).
  2. Pact Group Holdings Ltd (ASX: PGH) is the largest manufacturer of rigid plastic containers in Australasia. The company can boast of a 50% market share with 62 manufacturing sites and long-term blue chip customers. The stock is currently priced on a PE of around 13x and with a yield of 5%, partly franked.
  3. Spark Infrastructure Group (ASX: SKI) operates electricity distribution assets in South Australia and Victoria and electricity transmission assets in New South Wales. These infrastructure assets are regulated and as such they provide a reliable dividend. The yield on the stock is currently around 6.6% (unfranked)

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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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