Shares of CSL Limited (ASX: CSL), National Australia Bank Ltd. (ASX: NAB) and Liquefied Natural Gas Ltd (ASX: LNG) are trading sharply lower today.
Down 3.14%, 2.24% and 7.66%, respectively, it's safe to say August's volatility is back.
However, could it be time to load up on shares of these three S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) companies?
Let's take a quick look at each to see which – if any – are right for your portfolio.
CSL
CSL shares have been crunched in recent weeks. In fact, the global biopharmaceutical company has seen its shares slide 5.2% over the past month, despite announcing a solid profit increase in its 2015 financial year. Fortunately, below $90 per share, CSL looks like a worthwhile investment for the long-term. Indeed, the company has an exceptional track record of increasing profits year-in-year-out and currently trades around fair value, with a 2% dividend to boot.
NAB
NAB shares are sharply lower today despite falling 6.4% over the past month and offering an enormous forecast dividend yield of 6.7% fully franked. It appears the market is anxious about a slowing economy and increasing bank regulation. Together with the proposed divestment of its UK bank, Clydesdale. Increased capital requirements recently culminated in NAB announcing a record $5 billion capital raising. Coupled with its expensive-looking shares, NAB mightn't be a clear cut buy.
LNG
Once the pride of the ASX's resources sector, LNG Ltd shares have slumped 67% in just the past three months. Along with dwindling oil prices, investors are growing anxious about how the $640 million company will get its two North American natural gas projects, Magnolia LNG and Bear Hear LNG, up and running. Given the regulatory delays, I'm not surprised LNG shares are being sold down. Particularly with the company yet to establish the tolling agreements required for project funding. Although I'm sitting well ahead on my shareholding in the company, I do not think LNG Ltd shares are priced for buyers today.
Buy, Hold or Sell?
Each of these companies faces a unique set of risks moving forward. LNG Ltd is undoubtedly the riskiest of the three companies; investors should seriously consider the risk versus return trade-off before buying in.
Moreover, NAB shares are a 'hold' at best (I've previously said a good buying opportunity would likely be around $20 per share). Finally, CSL shares may be volatile in the near term since it derives a large proportion of its revenue overseas. However, shares in the leading $40 billion health giant could certainly prove to be a worthwhile investment below $90 for the long-term.
