3 shares to buy right now with $5,000

Looking for companies that are an opportunity right now? Here are 3 of my favourite picks, with attractive prices and good prospects:


NZ-based CBL Corp is a specialty insurer with a combined ratio (a measure of profitability) of below 80%, which compares very favourably with many of the majors like Insurance Australia Group Ltd (ASX: IAG). CBL also recently reported Gross Written Premium growth of 25%, which is again very high for the industry, and likely unsustainable.

Yet even with lower growth, CBL has around 40% of its market capitalisation in cash, highly aligned and experienced management, and growth opportunities in both existing and new countries. Priced at 26 times statutory profit, or 17 times underlying profit, CBL appears attractively priced despite currency headwinds that hammered its profitability last year.

Nearmap Ltd (ASX: NEA)

Despite a recent, surprise capital raising that shocked shareholders and sent shares plunging, Nearmap continues to look like an attractive investment opportunity. The company has no debt and plenty of cash, and operates a growing business with very high profit margins.

According to management’s estimates, Nearmap has around 15% of the Australian market and less than 1% of the much larger US market, showing there is plenty of room left to grow both here and overseas. I first bought shares in Nearmap at $0.56 almost two years ago, and the company has made significant progress since then.

Sirtex Medical Limited (ASX: SRX)

I was majorly wrong on pricing when I bought Sirtex at $29 in March last year. However, I remain confident in the company’s prospects and think that at today’s prices, investors are getting a much greater margin of safety.

Importantly, there is significant blue-sky upside if any of the numerous clinical trials underway like SARAH show a significant positive result. These could allow for Sirtex to sell more doses for a wider variety of conditions. The downside appears limited by steady demand for the company’s SIRT product, as well as a wide range of clinical literature underpinning its efficacy. Sirtex also enjoys a strong balance sheet with net cash and no debt.

3 More Top Shares To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often full franked..

But knowing which blue chips to buy, and when, can often be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Sean O'Neill owns shares of CBL Limited, Nearmap Ltd., and Sirtex Medical Limited. The Motley Fool Australia owns shares of Nearmap Ltd. 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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