The Australian share market has come off the boil over the past couple of weeks, but I think many investors would still agree that finding fast growing shares at a reasonable price remains a difficult task.
While the task is certainly difficult – it's not impossible!
Here are three shares that I believe offer an attractive risk-reward proposition for investors who want to put their hard-earned money to work right away:
Amaysim Australia Ltd (ASX: AYS)
2016 wasn't a great year for Australian telco shares but I think 2017 is looking somewhat brighter. One company that I believe has the potential to outperform is Amaysim. Its low cost offering is a differentiating feature from other providers, as is its capital light business model. The company continues to win a large number of new subscribers and is well positioned to get a free kick from the rollout of the NBN. The shares are trading on an underlying Enterprise Value/EBITDA ratio of around 10 and offer a healthy trailing dividend yield of 4.1%.
Mantra Group Ltd (ASX: MTR)
With its shares trading at 52-week lows, I think Mantra offers a great value proposition for investors who want to gain exposure to the tourism thematic. The market has been concerned about increasing competition in the sector, but I think the company's broad footprint across a number of accommodation categories reduces this risk to an extent. Importantly, Mantra continues to add new hotels to its portfolio and remains well positioned to take advantage of the growing number of tourists entering Australia. The shares are trading on a forecast price-to-earnings (P/E) ratio of 15.7 and dividend yield of 4.8%.
Mayne Pharma Group Ltd (ASX: MYX)
Shares of Mayne Pharma have been well-and-truly under the pump since news broke that the U.S government was investigating the company, along with a number of other generic drug makers, for non-competitive practices. While this is certainly a risk for investors in the short term, it appears the market is being overly pessimistic when you consider the investigation is centred around only a very small part of the company's ever-growing portfolio of products. The shares now trade at a 40% discount to their 52-week highs, and although investors should be prepared for more volatility in the short term, I think investors with a long-term investing horizon will be well rewarded.
