MENU

Here are 2 Easter egg stocks

There are very few businesses on the ASX that are very chocolate related. This isn’t going to be an article recommending Yowie Group Ltd (ASX: YOW) either. So how can I make this article about Easter eggs?

‘Easter egg’ can also mean a hidden message or secret in games and media. So, I’m going to write about two little-known small cap shares of the stock market. Here they are:

Paragon Care Ltd (ASX: PGC)

Paragon is a small cap healthcare business that provides medical equipment and various other health items for other healthcare businesses like hospitals and aged care facilities.

It may not sound exciting, but the business is steadily growing. It can charge more for the products it’s selling over time, it will sell more products in the future because Australia’s elderly population is growing and it’s acquiring other healthcare supplier companies to boost its offering. For example, it recently announced it would be acquiring a surgical equipment business.

Another thing that I like about Paragon is that it is steadily increasing its dividend. It has increased its dividend each year since 2013 and currently has a grossed-up dividend yield of 5.99%.

Paragon is currently trading at 13x FY19’s estimated earnings.

MNF Group Ltd (ASX: MNF)

MNF is Australia’s largest Voice over Internet Protocol provider. Businesses are always looking to provider a better or cheaper service and that’s what MNF can offer.

MNF is growing at an impressive rate. In its half-year result for the six months to 31 December 2017 it revealed revenue growth of 28%, earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 19%, net profit after tax (NPAT) growth of 25% and earnings per share (EPS) growth of 16%.

Management also increased the dividend by 15%, which is a good bonus for shareholders.

The market seems to have soured over MNF because it plans to relaunch its Pennytel brand. It will target the over-50 demographic and will use the current MNF software ecosystem. Management believe it will be EBITDA positive in FY19 and contribute $7.9 million EBITDA in FY20.

MNF is currently trading at 32x management’s FY18 EPS guidance.

Foolish takeaway

I think both stocks are trading at good long-term value and will make sweet additions to an investor’s portfolio for the next few years.

Another Easter-egg type stock is this exciting growth stock which will soon be expanding into Asia.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended MNF Group Limited. The Motley Fool Australia has recommended Paragon Care Limited. 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 Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!