The share market is becoming more volatile, most investors should see this as a good thing. When prices are volatile it means we’re presented with more attractive buying opportunities. Of course, that means having the cash available to invest in those shares at an attractive price. So, if I had an imaginary $10,000 to invest in shares today, this is how I’d do it: Paragon Care Ltd (ASX: PGC) – $2,000 Paragon is one of Australia’s smaller healthcare businesses, but it has big plans. It is steadily expanding its size through acquisitions so that it can offer hospital and…
The share market is becoming more volatile, most investors should see this as a good thing. When prices are volatile it means we’re presented with more attractive buying opportunities.
Of course, that means having the cash available to invest in those shares at an attractive price. So, if I had an imaginary $10,000 to invest in shares today, this is how I’d do it:
Paragon Care Ltd (ASX: PGC) – $2,000
Paragon is one of Australia’s smaller healthcare businesses, but it has big plans. It is steadily expanding its size through acquisitions so that it can offer hospital and aged care customers more of their required products and equipment.
It has plans to expand into more product ranges and also grow in New Zealand. It has several different avenues it can use to grow, so it could do quite well as long as it grows its economies of scale and maintains a conservative balance sheet.
It’s currently trading at 13x FY19’s estimated earnings.
InvoCare Limited (ASX: IVC) – $2,500
InvoCare is the largest funeral provider in Australia and New Zealand. It’s making a very large short-term investment to upgrade and refurbish all of its locations to respond to people’s wants better.
The market didn’t like this impact to the near-term profit, which is why the share price has fallen from almost $18 to today’s $11.78. I believe these investments and the long-term growth of the death rate will lead to InvoCare creating impressive long-term growth for shareholders.
InvoCare is currently trading at 20x FY18’s estimated earnings.
National Vet Care Ltd (ASX: NVL) – $2,000
National Vet Care is quickly becoming the second largest veterinary clinic business in Australia and New Zealand. It is steadily acquiring more vet clinics which obviously grows the business and also hopefully leads to growing margins.
The veterinary industry offers defensive yet growing earnings because the number of pets is increasing alongside the number of humans. Around three quarters of dogs and two thirds of cats visit the vet each year, which is a good source of recurring revenue for National Vet Care.
National Vet Care is currently trading at around 22x FY18’s estimated earnings.
Magellan Global Trust (ASX: MGG) – $3,500
Magellan Global Trust is a listed investment trust (LIT) that is run by the high-performing manager Magellan Financial Group Ltd (ASX: MFG).
It gives investors exposure to some of the biggest businesses in the world, some of its top holdings include Facebook, Alphabet (Google) and Starbucks. It’s currently trading at a slight discount to its NTA, meaning it could be a good value option at today’s price.
It aims to pay a 4% distribution yield of its NTA, meaning it could offer good income and capital growth for investors.
All of them are trading at good value in my opinion, I’d be happy to buy shares and I think at these levels all of them will outperform the ASX index over five years.
If I had another few thousand I’d definitely want to invest in this top stock which is predicting profit growth of 30% for this year alone.
It's been a nail-biter of a reporting season here in the first half of 2018.
But the real action, in my opinion, is what companies are doing with dividends.
What does this mean for you? Well there is one stock I've found that could very well turn out to be THE best buy of 2018. And while there's no such thing as a 'sure thing' when it comes to investing - this ripper might come as close as I've ever seen.
Motley Fool contributor Tristan Harrison owns shares of InvoCare Limited, MAGLOBTRST UNITS, NATVETCARE FPO, and Paragon Care Limited. The Motley Fool Australia owns shares of NATVETCARE FPO. 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.