If you're a long-term investor who doesn't mind taking on a little extra risk in the pursuit of superior capital gains, then these five companies are definitely worth consideration in my opinion.
- Slater & Gordon Limited (ASX: SGH) is Australia's largest listed law firm, with a market capitalisation of $1.23 billion. However, its best days could lie ahead. That's because a recent expansion into the much larger UK market has already begun to pay dividends for shareholders and looks likely to continue doing so. In FY14, net profit after tax (NPAT) increased by 47.2% on the back of a 40% jump in revenues.
- Nearmap Ltd (ASX: NEA) is another company leveraging off its local success to expand into much larger international markets. Nearmap provides aerial imagery services for all types of customers. Think Goggle maps, but better. The group recently sprung to profitability in a big way and launched Nearmap Insurance and announced its expansion strategy in the US.
- NetComm Wireless Ltd (ASX: NTC) is another junior technology company with great ambitions. It develops and sell products in the rapidly growing Machine-to-Machine (M2M) communications market, which continues to grow at a compound annual growth rate in excess of 40%.
- Shine Corporate Ltd (ASX: SHJ) is an Australian law firm, which is currently expanding its footprint throughout the country. Shine is the third largest personal injury firm in the domestic market but is increasing its presence in 'emerging practice areas', both organically and acquisitively.
- Collins Foods Ltd (ASX: CKF) is an owner and operator of KFC, Sizzler and Snag Stand fast-casual dining stores throughout Australia. Since listing on the ASX in 2011, it has grown earnings per share modestly but sustainably. It pays a strong dividend, equivalent to 5% fully franked and trades on a price-earnings ratio of just 10.
Buy, Hold, or Sell?
