With the recent jitters in the market, there is no time like the present to seek out investment opportunities.
As an investor it's important to be prepared to pounce on opportunities when they present themselves – often, an unexpected event can lead to a stock being mispriced for a short period of time. The key word here is "short" – an investor needs to already have formed a view as to underlying value and be able to quickly assess the situation – as there is often just a brief window of opportunity to buy before the rest of the market catches up.
Here are three stocks investors might be keen to pounce on.
Tabcorp Holdings Limited (ASX: TAH) recently provided investors with a trading update for its first quarter, the report showed a 4.6% increase in revenues (adjusted for the effect of the World Cup) thanks to a strong result from the Wagering division.
With a defensive earnings base and a forecast dividend yield of approximately 5.5% this could be a good addition to a conservative portfolio such as a self-managed super fund (SMSF).
Despite the solid domestic housing related data, the share price of building materials supplier James Hardie Industries plc (ASX: JHX) has fallen 13.5% in the past six months. The cause of the falls is probably most likely due to a perceived stuttering of the US home building market to which James Hardie is heavily exposed.
The share price reaction is arguably overdone with the US housing market likely to remain at elevated levels and the leverage to a strengthening US dollar a bonus for Australian investors.
Newcrest Mining Limited (ASX: NCM) provides investors with exposure to gold production. Owning a gold mining giant such as Newcrest can be a good hedge in the event of market declines but there is another reason to own Newcrest specifically.
Newcrest owns the Lihir gold mine – in fact Lihir is forecast to provide around 35% of total production to the group by FY 2017. With an extensive project underway to improve the efficiency of the Lihir gold mining operation this should provide upside to future earnings.
