Did you buy all the presents on your list for others, but forget to get something for yourself? Looking for a stocking stuffer for your own portfolio? Here are four ASX 100 companies that are under $5 a share, and have some interesting drivers for a good start to 2014.
SP Ausnet (ASX: SPN) ($1.22)
The company announced the Federal government's approval of China's State Grid Corporation's plans to increase its stakeholding in SP Ausnet to 19.9%. China's largest power producer agreed in May to pay $824 million to Singapore Power for the stake. SP Ausnet operates the primary electricity transmission and distribution network in Victoria, as well as a gas distribution network in WA.
Chinese companies like State Grid are looking for companies that offer steady returns better than what they can get in China. Regularly, for Australian companies, 19.9% is the threshold level above which a shareholder must make a takeover offer for the whole company. Whether State Grid has those plans or not is unknown. A 19.9% stakeholding can also be used as a block against rival bidders.
Mirvac Group (ASX: MGR) ($1.72)
This real estate investor, developer and investment manager has a 7.48% dividend yield.
Within the past month it has acquired a 200-dwelling development site in Bondi, a 21.9 hectare site with industrial development potential at a junction of the M4 and M7 motorways near Eastern Creek, NSW, and a 380-dwelling development site over 30 hectares in Baldivis, WA.
The general housing market revival will drive business for this $6.3 billion company.
Beach Energy (ASX: BPT) ($1.37)
Beach has oil and gas operations in the US and Egypt, but the chief business is located in the Cooper Basin, which straddles the SA and QLD borders.
It's moving forward with its unconventional gas development in a joint venture (JV) with Santos (ASX: STO) and Origin Energy (ASX: ORG). One of the JV's new wells, only a few kilometres away from its existing infrastructure in Moomba, SA, is now delivering around 3 million standard cubic feet a day of gas. Beach Energy has a 20.21% stake in the JV. The region offers more development potential for gas discoveries.
Duet Group (ASX: DUE) ($2.00)
The regulated energy utility infrastructure business offers an 8.25% dividend yield.
Its Multinet Gas division, a gas distribution company in Victoria, has transitioned to an internalised management in 2013. The company expects projected revenue increases and EBITDA margins to recover over the coming years.
Foolish takeaway
Just being low in share price doesn't say anything about the intrinsic value of a company. Share price is driven by earnings over the long-run, so it comes down to how attractive the stock is in popularity and earnings growth.
