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3 shares I’d buy before Christmas

Credit: Rosana Prada

It’s not long until the end of 2017, but that doesn’t mean it’s too late to grab a Christmas bargain.

If you look hard enough there is always something to put in your stocking:

Greencross Limited (ASX: GXL)

Greencross is one of the best ‘blue chip’ shares in my opinion. It is across the country with its Petbarn retail stores and Greencross vets. It also has a pleasing grossed-up dividend of 4.47%.

However, unlike shares in the ASX20, Greencross has a clear plan for growth.

The pet industry is growing every year with the number of pets increasing and the total spend at pet stores, vets and other locations.

Greencross’ business is growing at a good rate, with revenue growing by 11% in FY17.

The key to future growth is Greencross’ co-location strategy. This is where a Greencross vet is installed inside a Petbarn. It should save on costs for both businesses and grow revenue as each business can cross-sell to the other’s customers. A bonus is that starting a new vet is cheaper than acquiring an existing vet.

I think Greencross is a Christmas bargain because it’s only trading at 16x FY18’s estimated earnings.

Magellan Global Trust (ASX: MGG)

Magellan Global Trust is a new entity launched by Magellan Financial Group Ltd (ASX: MFG).

The trust is following the same proven strategy of the unlisted Magellan Global Fund. Most Australians have far too little exposure to overseas companies, particularly global winners like Apple, Alphabet (Google), Facebook and Microsoft.

Magellan Global Trust gives investors that exposure whilst also aiming for a 4% distribution yield to provide solid income for shareholders.

TRILOGYINT FPO NZX (ASX: TIL)

The market was a little underwhelmed by Trilogy’s half-year update recently.

Although it didn’t show any earnings per share growth it did reveal some positive figures such as revenue growing by 4% and net profit after tax up by 17%.

Management believe that annual result will show that the second half of the year is much better for the business.

I think that Trilogy has an exciting future ahead with changing consumer beauty preferences and because Trilogy is offering the beauty market more products.

Trilogy is trading at 11x FY17’s earnings with a dividend yield of 2.08%.

Foolish takeaway

Out of the three I mentioned I think Greencross is trading at the best value. It’s clearly on a path for long-term growth, but it’s investing heavily today. Magellan Global Trust may end up producing the best shareholder returns because of the quality of companies and investment staff it works with.

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Motley Fool contributor Tristan Harrison owns shares of Greencross Limited, MAGLOBTRST UNITS, and TRILOGYINT FPO NZX. The Motley Fool Australia owns shares of Greencross Limited and TRILOGYINT FPO NZX. 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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