Am I the only who feels like they've been walking over a mine field this reporting season?
The share prices of some stocks have sunk, whilst others – such as the incredible Toll Holdings Limited (ASX: TOL) – have gone straight up.
Overall, it's been a great reporting season for my portfolio, thus far…
There's been a few near misses, of course.
Entertainment heavyweight Ardent Leisure Group's (ASX: AAD) heavy sell off caught me off guard, so too did iiNet Limited's (ASX: IIN) lacklustre result.
Still, it could've been worse – STW Communications Group Ltd (ASX: SGN) I'm looking at you.
And my winners have clearly outweighed the losers.
Looking back over the past fortnight, I thought I'd take a moment to highlight some of the stocks which I feel have been most impressive, and still offer good value for buyers.
My first pick is Slater & Gordon Limited (ASX: SGH). It's a clear winner for me.
It's my second best performing stock and one of my largest holdings… I think you'll agree, it's hard to knock a 46.5% profit increase from a $1.6 billion company.
Especially, when its overseas growth story is just getting started!
Whilst I'm conscious to not fall in love with the stock, at today's price of $7.41, there could still be some steam left, although investors must be in it for the long run. Regular readers may remember it was my top stock pick of February.
It's my belief that long-term investors should focus much of their attention on these medium-sized, or 'mid-cap' companies on the ASX, for the biggest gains over the coming decade.
G8 Education Ltd (ASX: GEM) is one of my favourites in this space. After announcing a 70% rise in net profit earlier in the week, you'd think its share price would've shot higher, right? Wrong. Since then, its share price has actually fallen 10%!
Now, you might think that's bad… but from a buyer's perspective, it's great news!
Who cares if it failed to meet analysts' expectations, at today's price of $4.34 per share if it continues to pay its six cents per share quarterly dividend throughout 2015 (I don't see why it wouldn't), then it's trading on a grossed-up dividend yield of 7.9%!
For the record, G8 Education is a 'growth' stock, not an income stock.
So you don't need me to tell you that's good. Sure, ABC Learning's collapse is still fresh in the mind of many investors.
Then there's the regulatory risks.
But the risk-reward trade-off appears in my favour – so it's a bet I'm willing to take.
In fact I was so impressed by the company before it announced the 70% profit jump, that I added a bucket load of shares to my family's portfolio. At these prices, it looks just too good to pass up.
Finally, a company which many readers probably haven't heard of is Servcorp Limited (ASX: SRV).
Servcorp provides serviced and virtual offices in 52 cities spread throughout 21 countries.
Earlier this week it announced a bumper profit result, with earnings per share up 36%. It declared an interim 11 cents per share dividend and told investors to expect the same in the second half…
What was that about low interest rates?
Never mind.
At $5.95, Servcorp is trading on a partially franked dividend of 3.7%. It's money for jam.
However, just like Slater & Gordon and G8 Education, I'm not prepared to put my hand on a book and guarantee its performance. In this game nothing's guaranteed.
However the company appears to offer the three things I like from any investment:
- Value
- Income
- Growth potential
What more can an investor ask for?
Low interest rates? Check.
Tax effective dividends? Check.
Discounts on long-term capital gains? Check.
A bull market? Check.
