October has been a horror month for investors everywhere as concerns over rising interest rates in the US and the prospect of an escalating trade war between the US and China led investors to hit the sell button. Equity markets were also near record highs in early September so some of the selling is probably related to profit taking as investors book gains delivered over the past year.
On the ASX growth shares in particular have been hammered but this may give investors with some spare cash the opportunity to buy some of Australia’s fastest growing companies at a big discount to prices just a couple of months ago.
Let’s take a look at four shares for investors’ watch lists.
At $16.07 the WiseTech Global Ltd (ASX: WTC) share price has fallen 26% from its August 31 closing price and even further from a record high of $25 hit earlier in August. WiseTech is a software-as-a-service in the global shipping and logistics space. It is founder led, fast growing and a market leader looking to build a dominant competitive position. As a software business its economics are also attractive, but some investors may find its valuation still too high.
At $7.23 Bellamy’s Australia Ltd (ASX: BAL) share price has fallen more than 30% from its August 31 closing price of $10.96. The big falls have been subsequent to an October 24 trading update that warned of a weaker-than-expected start to financial year 2019. As such the stock’s falls may be well deserved and little to do with the wider macro-economic environment.
At $5.97 the Nextdc Ltd (ASX: NXT) share price is down 17% from its $7.09 closing price of August 31. Nextdc is the Brisbane-based data centre operator that is expanding via investment in constructing new data centres in east coast cities. The group has some powerful tailwinds as enterprise demand for online data (cloud) services rockets.
At $26.50 the Aristocrat Leisure Limited (ASX: ALL) share price is down 16% from the August 31 closing price of $31.59. Aristocrat is a pokie machine manufacturer that has been growing strongly in Australia and the large US market. Demand is apparently fuelled by its best-in-class machines. Another one for the watch list if it falls further.
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