If you safely held $10,000 (or any other amount) in your bank account over July, earning 3% interest per year, consider this: over the same period the S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) climbed almost 5%. In one month.
Lucky for you, several well run companies with excellent long-term prospects, including Nextdc Ltd (ASX: NXT), Cover-More Group Ltd (ASX: CVO) and Ozforex Group Ltd (ASX: OFX), were sold down by the market in July, creating an opportunity for canny investors looking to invest that spare $10,000. Here's why you should consider buying them this month.
NextDC provides Data-Centres-as-a-Service and is set to profit from the evolution of cloud computing, though you may not believe it looking at the company's share price.
Shares sunk from $1.74 in July to trade at $1.54 today and the company has lost 43% of its value in the last 12 months. This is despite NextDC announcing new customer growth of 132% and revenue growth of 21% to $144 million for the full year.
Shares in recently listed insurance group Cover-More Group continued to slide in July from as much as $2.40 per share in May, and can be picked up today for $1.83. Like NextDC, Cover-More also anticipates big growth, announcing a prospectus-beating pro-forma EBITDA result for the full year 2014 of $50.1 million.
This is up from $41 million for FY13 for growth of 22%. Excitingly for investors Cover-More Group looks set to continue the growth and is expanding into commercial travel insurance for the world's fastest growing travel market – China. This is an extension of the company's current insurance offerings including for Flight Centre Travel Group Ltd (ASX: FLT).
OzForexhad a harder month in July, with shares dropping from $2.69 to $2.22 today. Shares were as high as $3.40 in March, but the foreign exchange provider has since fallen out of favour with investors.
The company's online structure provides a potentially global market of new customers at low costs. This is extremely valuable as the world gets more and more inter-connected and currency transactions between countries grows.
