The Class Ltd (ASX: CL1) share price, Praemium Ltd (ASX: PPS) share price and Vocus Group Ltd (ASX: VOC) share price could be worth watching in 2017.
Indeed, at today's prices Class, Praemium and Vocus are amongst my top three growth ideas of 2017.
Class
Class is $330 million software business that has created an online accounting and administration platform. Its cloud-based program is similar to the technology provided by XERO FPO NZ (ASX: XRO) in that it is accessible by accountants anywhere there is an internet connection. Class's flagship product helps accountants and financial advisors administer client Self-Managed Superannuation Funds (SMSFs). Everything from tax to valuations and performance reporting.
The company has only been listed for a couple of years but already it has an enviable track record — rising 100% since late 2015. It recently began franking its dividend, which is forecast to be slightly over 1% in the year ahead.
Vocus Group
Vocus Group is the $2.7 billion telecommunications company which owns names like Dodo, Amcom, NextGen, Primus and more. It has suffered a heavy selloff over the past six months — falling 39% — as investors reacted to the changing broadband market. Over the past five years, when the Vocus share price rose from less than $2 to over $9, the telco market was ripe for takeovers. Indeed, Vocus has grown largely by taking over other companies, including M2 Group, Amcom and NextGen.
With fewer targets available for the company to acquire its traditional growth avenue may not be as appealing going forward. However, at the current Vocus share price I think it is worthy of closer inspection. The same could also be said of TPG Telecom Ltd (ASX: TPM).
Praemium
Praemium is a smaller company, with a market capitalisation of just $135 million. The company provides a platform for investors (or their advisors) to find portfolios and follow the recommendations of an investment professional. It might seem a little confusing at first, but it can provide a more convenient and tax-effective way for clients to invest their money. It is a little more speculative than the other companies on this list and therefore should be treated as a high-risk investment idea.
Foolish Takeaway
One of the great things about shares is that you can make more than 100% but you cannot lose more than 100%. With a long-term investment horizon (five years or more), I think the odds of achieving success in the sharemarket is greatly improved.
