Recently Aussie stock indices got reshuffled and a number of up-and-coming growth stocks got promoted. The quarterly rebalance gives investors the chance to take a look at some proven growth stocks and assess whether or not they'll make excellent investments from here on.
Among the names entering the S&P/ASX 200 (INDEXASX: XJO) were Liquefied Natural Gas Limited (ASX: LNG), Asaleo Care Limited (ASX: AHY) and Technology One Limited (ASX: TNE). LNGL and Technology One have smashed the market's 12-month return of 5%, jumping 1,800% and 60%, respectively. Therefore it's little wonder why they've entered the big league.
However, more notable for growth investors is the addition of companies into the S&P/ASX 300 (INDEXASX: XKO). The admission into the top 300 public companies affords some super funds and money managers the ability to invest in quality growth stocks which they were previously unable to buy.
Four quality companies added to the index were Capitol Health Ltd (ASX: CAJ), Infomedia Limited (ASX: IFM), Equity Trustees Ltd (ASX: EQT) and recently-listed Monash IVF Group Ltd (ASX: IVF).
Capitol health is a $280 million medical diagnostic imaging company, which in less than eight years has grown into Victoria's second largest provider by clinical facilities. Although I'm not a buyer at current prices, I'm eagerly waiting for any meaningful set back in price to grab a stake in this well run company.
Infomedia is a provider of information solutions to automotive parts and service centres in over 185 countries. The $350 million company provides an all-in-one service for customers with products ranging from simple parts ordering to SuperService – an easy-to-use program which takes the pain out of invoicing, parts sourcing and much more.
Equity Trustees is $380 million financial services provider offering everything from estate planning to funds management and institutional services. The group is currently growing acquisitively and in FY15 will prioritise the integration of ANZ Trustees. Since July 2005, the company has achieved a total shareholder return of more than 206%.
Lastly, fertility treatment provider Monash IVF has been inducted into the top 300 publicly-listed companies. Its clinics are primarily located in Victoria and Queensland but it also has a partnership with KL Fertility Centre in Malaysia. Monash IVF is growing both acquisitively and organically, via the rollout of new locations. However, its first few months on the ASX have been rough, with shares falling nearly 10% since their IPO in late June.
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