An important ritual for most investors is the monitoring of stocks which they would be interested in buying under a certain set of circumstances.
These circumstances often involve a lower price. For example, after researching and valuing a stock an investor may come to the decision that they'd like to own the company but only at a price which is lower than that which the stock currently trades at. Hence the stock is promptly placed on a watchlist.
Another reason a stock may end up on a watchlist rather than in a portfolio is because there is some uncertainty hovering over the company. Uncertainty often leads to a decision to stay on the side-lines and wait until something happens (or doesn't happen) before looking to purchase the stock for a portfolio.
Here are three stocks which for a combination of reasons including pricing or uncertainty might not be stocks you'd add to your portfolio just yet but they could well deserve a place on your watchlist.
- SG Fleet Group Ltd (ASX: SGF) is a leading provider of fleet management services to corporations and governments in Australia and also has a growing presence in New Zealand and the UK. By offering a complete package of fleet solution services to its clients, SG Fleet can attract a loyal customer base. The stock has had a good start to listed life with the share price gaining 18% since first trading almost one year ago.
- ERM Power Ltd (ASX: EPW) is the fourth largest retailer of electricity in the National Electricity Market with a focus on electricity sales to commercial, industrial and government customers. The group is increasingly vertically integrated with company owned power generation assets and energy exploration assets too.
- Slater & Gordon Limited (ASX: SGH) is a market-leading law firm which specialises in personal injury insurance claims, commercial and family law. The group has 70 offices across Australia and a further 12 offices in the UK. Slater & Gordon believes there is scope to significantly grow its market share of its core specialties over the coming years.
