A three-digit share price – 100 cents – is an arbitrary marker on the stock market, because it does not tell you much on its own. But when you can find situations where there is forecast earnings, a strong dividend yield also with growth prospects, and analysts projecting share price growth, companies still with a share price of less than $1 can be considered likely to attain (or re-attain) that level. Here are 3 candidates.
1. Healthia (HLA, 90 cents)
Market capitalisation: $57 million
Estimated FY20 dividend yield: 5%, fully franked
Analysts’ consensus price target $1.35 (Thomson Reuters)
In the same vein as dental aggregators 1300 Smiles (ONT), Pacific Smiles (PSQ) and Smiles Inclusive (SIL), and veterinary groups Greencross (taken over in February) and National Veterinary Care (NVL), Healthia was listed in September 2018 to capitalise on the increasing demand for allied health services in Australia, by aggregating a fragmented industry characterised by lots of small practices.