50 cents is an arbitrary price level on the ASX but here’s a group of promising stocks that all come in under that level.
1. CML Group (CGR, 49.5 cents)
Market capitalisation: $100 million
FY20 estimated yield: 6.1%, fully franked
Analysts’ consensus target price: 72 cents (Thomson Reuters), 71 cents (FN Arena)
Business finance specialist CML Group is an excellent example of a niche operator on the stock exchange. CML specialises in helping small-to-medium-sized businesses – or “enterprises,” to fit in with the common acronym, SMEs – with their finances, specifically in being paid. CML’s core business is providing invoice “factoring” – also known as “debtor finance” – which provides working capital to its customers in exchange for their invoices, while they are waiting to be paid.