September was a woeful month for share market investors, and let's be honest, the beginning of October wasn't much better.
After years of strong gains, investors were reminded how it feels to be on the market's wrong side as the market only narrowly avoided falling into a 'technical correction' – defined as a 10% fall in prices. Of course, some companies failed to avoid that category. Each of the big four banks, for instance, fell by more than 10% leading many investors to assume the good times were officially over.
But things are starting to look up again. Since dipping as low as 5,122 points on 13 October, the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) has managed to regain 7.7% and is once again sitting above 5,500 points. In fact, it's now just 2.9% away from setting itself a new six-year high, and we shouldn't write it off from hitting the 6,000 point mark by the end of the year just yet…
It's fair to say I'm pretty excited about the market's prospects over the coming months – especially after the Bank of Japan announced that it would ramp up its massive economic stimulus program in an attempt to rid itself of deflation for good.
With that in mind, here are three stocks you should consider buying, or at very least adding to your watch list, in November…
- Coca-Cola Amatil Ltd (ASX: CCL) was named by my colleague Sean O'Neill and myself as our outright best stock to buy this month. We were both impressed by the outcome of the company's recent strategic review which unveiled plans for $100 million in cost savings over the next three years, retention of its once-so-promising Indonesian business, as well as plans for greater marketing and product development. The shares are now trading at $9.29 and offer enormous upside potential in the long run.
- Shine Corporate Ltd (ASX: SHJ) shares are trading at a marginal discount after the litigation firm's two founders sold down some of their stock holdings. However, I perceive this as a good thing as it will create greater liquidity in the stock making it a safer bet for your money. The company specialises in personal injury cases but is expanding its legal expertise, whilst also expanding geographically across Australia. The company currently maintains a market cap of $448 million with plenty of room left to grow.
- Shares of Australia's leading travel insurance business, Cover-More Group Ltd (ASX: CVO), have also experienced a setback recently. While it's possible they are simply cooling down following a massive August and September (in which time they rose roughly 41%), it's also possible that the Ebola outbreak has investors offside. However, it should be noted that travellers would be more likely to take out travel insurance as a result of the deadly outbreak, which would imply the stock may have been oversold. It might not be the cheapest stock on the ASX with a forecast P/E ratio of 20.4x, but the company certainly boasts strong growth potential.
