Just like going through the bargain bins at your favourite retailer at Christmas, the ASX is having its own Boxing Day sales early for clearance. The S&P/ASX 200 Index (ASX: XJO) (Index: ^AXJO) has given up all its recent gains and is back down to its October lows.
Extra savings may be had because at this time of year, traders don't want to be stuck with losing positions over the holidays, so they clear out some of their questionable holdings and concentrate more on their holiday getaway.
If you haven't packed up and are not half-way out the door yourself, you should look over the discounts the market is offering.
One beaten-down stock is Greencross Limited (ASX: GXL). This is a petcare service provider and pet supplies retailer. It started out with a successful, growing veterinary service, but over the past two years has made two acquisitions that have put it at the forefront of pet care supplies with retail store brand names of Petbarn and CityFarmers. Since August, it's come off the boil from about $11 to $7.50. The market may be concerned about retailers and lumped the growing business chain with all the others. Earnings are forecast to grow around 19% annually over the next two years as it continues to expand more across Australia. Pick it up on the cheap.
BHP Billiton Limited (ASX: BHP) is looking at share prices under $28 recently, which has pushed its dividend yield up to 5.0% fully franked. I realise the stock could go further down from here with the added pressure of falling oil prices, but it is nearing 2009 GFC lows. This would be a longer-term position for your portfolio that you add to in times of weakness. You usually make your best returns in cyclical industries when companies are at the bottom of the cycle. Snap up a little and then wait for another catalyst like oil prices bottoming out and starting to rally. It's a game of patience that long-term investors win at over time.
