Ten shares that could be worth your while buying before the year ends
Published 20/09/2015 | 02:30
It's been a bit of a roller coaster ride on world stock markets of late. Investors were jittery last week ahead of the US Federal Reserve's policy meeting last Thursday. A major stock market crash in China last month led to billions being wiped from stock markets across the world.
"The markets are volatile right now," said John McGlade, chief executive of the Institute of Investing & Financial Trading (IIFT) in Dublin. "Yes there could be further market falls to come due to downward pressures in China and commodity-producing countries. But there will always be a bottom and there is always value lurking somewhere."
The Sunday Independent asked some investment experts what stocks might be worth snapping up before the end of this year - despite the market volatility.
IG Group Holdings is a spread-betting company based in Britain which Mr McGlade believes could be worth investing in.
"In the summer, its share price [which is quoted in sterling] fell from £8 to around £7 because its CEO is stepping down and the company also lost money on the Swiss franc revaluation earlier in 2015," said Mr McGlade. "I think this fall was overdone. Whether the markets go up or down in coming months, IGG will benefit from the volatility and huge interest in the markets. Overall I think this stock could get back to £8 by Christmas and, even if it doesn't, it should be a shoe-in to challenge £9 in 2016."
Dublin-based drug-maker Shire is one of the stocks tipped by David Holohan, head of research with Merrion Capital. Shire has made a multi-billion dollar offer for the US biotechnology firm Baxalta. "As it stands, Shire has excellent growth prospects over the next few years," said Mr Holohan. "Even if it doesn't acquire Baxalta, its share price will do well."
Irish agricultural group Origin Enterprises is another share tipped by Mr Holohan. Last month, the company struck a €22.4m deal to acquire the Polish agri-services business Kazgod. "Origin has a steady cashflow and a dominant position in its market," said Mr Holohan.
The Dutch bank ING is another share Mr Holohan believes is worth buying. "The bank has a high profitability ratio, excellent capital positions and a growing dividend," he said.
Earlier this month, the hotel group Dalata announced plans to raise about €160m to fund more hotel purchases. Dalata is one of the shares which stockbrokers Goodbody recently recommended to its institutional investors. "Dalata is highly geared towards the Irish economy, with about 88pc of its hotels based in Ireland," said Goodbody in a recent investment report. "The Irish hotel market is being helped by a strengthening consumer while improving tourism figures show Ireland is back in vogue for international visitors."
Builders merchant and DIY group Grafton is another stock tipped by Goodbody.
"The only significant way to play the recovery in the Irish construction sector is through Grafton, with its Irish operations representing about 20pc of group sales," said Goodbody in its investment report.
The Irish petrol station chain Applegreen saw its profits jump by more than a third in the first six months of this year. Applegreen is another share recently tipped by Goodbody. The stockbroker believes this company has good growth prospects because of changing eating habits (as more people eat food on-the-go) and opportunities for the development of motorway service areas in Ireland.
Consumer foods group Unilever is one which Morningstar equity analysts recently described as having a competitive advantage over its peers and which could be a good long-term investment - if its shares are bought at the right price.
The British multinational and software design company, ARM Holdings, is another company which Morningstar analysts believes has a competitive advantage over its peers. Its processor designs power Apple and Samsung's smartphones. Morningstar believes few firms have the wherewithal to build a similar library of processor designs.
Shares in the online retailer have done well this year. Although Amazon shares were cheaper to buy early on the year, some investment experts believe they are still a good share to buy. Amazon is the first port of call for many smartphone shoppers. Less than 10pc of retail sales around the world are conducted online - but this share is expected to increase and Amazon is well placed to benefit from that.
Sunday Indo Business