Christopher Georges: Sirtex Medical Limited (ASX: SRX)

Sirtex shares have taken a hammering over the last month after the company announced it would miss its full year dose sales growth target. Although this was disappointing, it was not totally unexpected. The market appears to have over-reacted to this short-term disappointment and I believe this now presents a buying opportunity for risk tolerant investors.

Sirtex's long-term growth story remains intact and the company still has the opportunity to significantly expand its target market if ongoing clinical trials deliver positive data.

Motley Fool contributor Christopher Georges owns shares in Sirtex Medical.

James Mickleboro: Catapult Group International Ltd (ASX: CAT)

Even though the share price of Catapult Group has rocketed over 55% this year I still believe it could be a great long-term investment today. The company provides wearable technology and software to top sports clubs and athletes across the world. Its management has estimated its addressable market growing to be worth almost $5 billion per year by 2021. As one of the industry's market-leaders I feel Catapult Group is positioned for strong growth over the next few years.

Motley Fool contributor James Mickleboro has no financial interest in Catapult Group International Ltd.

Alan Edmunds: SEEK Limited (ASX: SEK)

During times of market uncertainty, I believe investors should deploy any spare funds into high-quality businesses. One such business that has suffered with the rest of the market is SEEK. Since reaffirming guidance in May, SEEK has fallen over 13% to around $15 per share. Personally I like management's intention to invest now for future growth. In my opinion such forward thinking should be welcomed by long-term investors and that is why I believe SEEK will prove to be a good investment.

Motley Fool contributor Alan Edmunds owns shares in SEEK Limited

Regan Pearson:  Story-I Ltd (ASX: SRY)

Microcap, Story-i Ltd, is tiny, growing and extremely cheap. The company is an authorised Apple product retailer throughout Indonesia, Vietnam and Myanmar. Story-i has built up 17 stores since 2010 and also targets private schooling in Indonesia, where it bundles Apple devices and e-learning programs. The company is profitable, has no significant debt and based on expected 2016 full year earnings it will have grown revenue at a compounded 10.2% over the last four years. With a current share price of $0.07, Story-i sells for a forward price-to-earnings ratio of just 3.9.

Motley Fool contributor Regan Pearson has no financial interest in Story-i Ltd.

Ryan Newman: Somnomed Limited (ASX: SOM)

Investors are right to be cautious in the wake of Britain's decision to leave the European Union, and businesses with defensive characteristics may be a good option. One such company is SomnoMed. It provides treatment solutions for sleep apnea that are less expensive and less invasive than the alternatives provided by various rivals. This makes it a more appealing option for the patient, while doctors are also more likely to recommend it based on higher compliance rates. Sleep apnea is a serious condition and one that typically needs to be treated no matter the state of the wider economy.

Motley Fool contributor Ryan Newman does not own shares of SomnoMed Limited.

Rachit Dudhwala: Clydesdale and Yorkshire Bank (ASX: CYB)

With Brexit campaigners officially winning the UK's referendum last Thursday, stocks exposed to European economies have slumped in the fallout. None more so than Clydesdale & Yorkshire Bank. Shares in the National Australia Bank spin-off have plummeted over 25% as investors assess Brexit's impact on the UK bank's future earnings. With the stock now trading well and truly below book value, long-term investors should keep an eye on European developments and look to add it to their portfolio as a rebound opportunity.

Motley Fool contributor Rachit Dudhwala does not own shares in Clydesdale & Yorkshire Bank.

Tim McArthur: Village Roadshow Ltd (ASX: VRL)

Shares in this leading entertainment and tourism company have sunk 30% since the beginning of calendar year 2016. At $5 a share, Village Roadshow is trading not only near a 52-week low, but also at its lowest level since early 2013.

Assets owned and operated by the group include theme parks such as Sea World Resort and other cinema related businesses. Providing exposure to the tourism thematic and trading on a financial year 2017 price-to-earnings ratio of 14.3 times (according to Reuters), I think the stock looks good value relative to the market.

Motley Fool contributor Tim McArthur does not own shares in Village Roadshow Ltd.

Tom Richardson: Vocus Communications Limited (ASX: VOC)

This is a re-recommendation for an internet services business that recently acquired inter-city fibre network owner NextGen to expand its physical digital-infrastructure across Australia and overseas. The stock has more than quadrupled in value over the past four years thanks to an aggressive acquisition strategy and some superb capital management in building out its tech infrastructure. Thanks to the digital tailwinds and astute management team I expect it will thump the market over the next three to five years.

Motley Fool contributor Tom Richardson owns shares in Vocus Communications.

The post Top stock picks for July appeared first on The Motley Fool Australia.

Of course, there aren't many people looking at Story-i, because not many people can buy shares in the company — and its market capitalisation is tiny, at under $10 million.

At present, it is so illiquid that every trade makes a difference, and it would be very difficult to accumulate a position without moving the price.

However, this only goes some way to explaining why it is trading on such a low multiple of earnings. Indeed, because it is a small foreign-based company it is quite possible that some market participants would be skeptical of the company's corporate governance. After all, it doesn't matter how cheap a company is, if shareholders won't receive fair treatment.

Yet there are plenty of reasons to believe that Story-i will take an honourable path. After all, the company is majority owned by established Indonesian property developers, so there is some reputational risk attached to poor treatment of ASX investors. On top of that, the company's accounts have their negatives, and a weak balance sheet sits in contrast to some of the less reputable ASX companies — who seem to have plenty of cash, but no desire to pay it to shareholders.

In fact, Story-i is yet to raise capital on the ASX and need not have listed here, but for a desire to impose transparency and high corporate governance standards upon itself. To quote the annual report:

"the Company listed on the ASX to provide improved visibility with a high standard of corporate governance as it deals with well-known international brands like Apple, Samsung, Lenovo and Citrix. The ASX listing also serves as a platform for the Group to grow organically in Indonesia and across the South-East Asian region."

To me, this suggests that the company has more to gain by playing fair and by doing the right thing, so I purchased a very small parcel of shares (some time ago).

Importantly, investors should note that the company has outlined it intends to open at least 7 more stores in the current financial year. Such expansion is rather capital intensive, and new stores do not start making profits immediately. Rome wasn't built in a day.

Furthermore, distribution agreements like the company's agreement with Lenovo can also be rather capital intensive, depending on the terms of trade required by both suppliers and end customers.

As a result, it's not entirely surprising to see that the balance sheet shows a bothersome build-up of receivables. With generally reliable counterparties, the directors may well be confident of being paid, but that won't help the company rectify its rather weak cashflow position. These factors create a strong incentive for the company to issue shares to raise capital.

It may take some time for the Story-i investment thesis to be proved or disproved, and much will depend on how the company funds its growth. Having said that, at current prices, the company looks very attractive given its growth ambitions and opportunity set. Yet, the directors have not made it clear when the company is likely to become cashflow positive (and when they are likely to pay dividends.) This uncertainty may discourage investors from buying shares.

Within the micro-cap sector of the ASX, a small but regular dividend payment builds trust and appeals to Australian investors — who (perhaps unfairly) expect most companies to pay a dividend if they can. This can be seen in successful growth stories like G8 Education (ASX: GEM) and Capitol Health (ASX: CAJ). Both these companies paid dividends while also issuing equity to expand.

All in all, Story-i may struggle to achieve a reasonable price for its shares if it does not follow this example. Nonetheless, with a strategy that is so clearly suited to a growing middle class in Indonesia and Vietnam, Story-i should be in a position to generate massive returns for shareholders — if its growth strategy is managed well.

Story-i shares are highly illiquid, and only experienced investors with developed risk management skills should even consider such an investment. However, for those who can handle investing in illiquid microcaps, Story-i might pique an interest. I, for one, can't help wondering why anyone would sell shares so soon after the reverse listing, at current prices. 

Edit: An earlier version of this article incorrectly suggested that the majority holders of Story-i (surname, Widodo) are related to the president. This was based on incorrect information and has been rectified.

The post Is Story-i Ltd More Than Just A Good Story? appeared first on The Motley Fool Australia.