According to a post on the ASX website, Retail Food Group Limited (ASX: RFG), Jumbo Interactive Ltd (ASX: JIN), Altium Limited (ASX: ALU), RCG Corporation Ltd (ASX: RCG) and Mantra Group Ltd (ASX: MTR) are amongst the most popular shares with retail investors in 2017.
Simply Wall St says these five companies are the amongst the most purchased in 2017, outside of the ASX 100.
Retail Food Group, the owner of Gloria Jeans, Pizza Capers, Crust Pizza, and much more, topped the list. It is a near $800 million company with a number of retail brands, which may make it easier to understand than other companies on the market.
However, what I find surprising about Retail Food Group's position on the list is that people have been buying it, according to the Simply Wall St article. Retail Food Group shares have fallen 37% in one year, which usually heralds selling by investors — not buying.
Then again, at $4.40 per share, Retail Food Group could be offering compelling growth and income. Retail Food Group shares are forecast to pay dividends equivalent to 7% fully franked, according to The Financial Times.
And analysts, although rating shares as a 'hold', are forecasting profit growth in the next two years. That places Retail Food Group shares at less than 10 times their profit.
So maybe we are a bunch of bargain hunters, after all.
Footwear retailer RCG Corporation and hotels business Mantra Group are much the same. Their shares have fallen and might appear cheap.
Altium is a software business taking strides abroad. Its shares are up 1,400% in five years, so it makes sense that the business is on the receiving end of investor capital.
Meanwhile, shares of Jumbo Interactive the gaming business have bounced back from a dark period.
Should you buy the most popular ASX shares?
I always find it interesting to see the results of these types of lists and surveys. I find this one especially interesting because some of the companies have performed very poorly, but the survey was based on 'buy' decisions. I think it is great because it shows that at least some investors are not simply jumping on the next 'hot thing'. Although, Altium shares fly in the face of that idea.
In my opinion, these 10 companies — especially the companies with shares that have fallen steeply — could be the starting point of your research for new ideas.
