Reporting season in February and August is always a good time to check up on prospective purchases to see if business is progressing. Here are two companies I've got my eye on, that I could think could be a good buy at the right price:
Reliance Worldwide Corporation Aus P Ltd (ASX: RWC)
Reliance Worldwide is a US-based manufacturer of push-to-connect (PTC) plumbing fittings and various other plumbing solutions for domestic, commercial, and industrial customers. It has previously won sole-supplier status for its PTC fittings at both Lowes and Home Depot, which is an encouraging development if it reflects the company's quality.
The company has strong brand recognition and promising products in development, although a major drawback is the fact that it is a manufacturer and supplier, and experiences things like key customer risk (see Lowes and Home Depot above) and the potential for margin pressures caused by higher wages, higher resource prices, or price competition in stores.
I like Reliance a lot and would suggest readers look at it more closely following its upcoming report.
Blackmores Limited (ASX: BKL)
Blackmores is the Australian-based vitamin company whose shares have fallen from $160 to today's prices of $88 over the past 12 months. Fears over slowing sales to China – ANZ sales fell 26% in the first 9 months this year – as well as the recent departure of the CEO Christine Holgate have led to the business being sold off by investors.
Still, like Reliance, Blackmores has strong brand recognition and the company has entered promising new markets in Asia, like Korea and Indonesia. Over the next 5 years the company has a good chance of generating future growth, however it is also priced at ~30x full year earnings, even at today's $88 share price.
I'd be waiting to get a better feel of the company's prospects in the upcoming annual report before considering a purchase.
