Shortlisted – health stocks and Automotive Holdings

Editorial director of Switzer
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The imminent Medibank IPO is drawing attention to all things medical. Unfortunately if you haven’t made an application by now, you may have missed out on an allocation as the retail offer closed on Friday. But that may not be such a bad thing. Check out Paul Rickard’s view on the IPO on Switzer Daily here.

But if you’re looking for other healthy stocks, you might want to look at some of the “young and upcoming stocks” and Rudi Filapek-Vandyck suggested – Nanosonics (NAN), Promedicus (PME) and Simavita (SVA) on Switzer TV during the week.

Rudi says Promedicus is essentially a software company, which happens to be in the healthcare sector. It’s a company that enables large MRI files to be shared amongst medical practitioners.

“If the growth that is projected comes through, the share price will be a lot higher,” he said.

And after taking a look at new vehicle sales – FY14 new vehicle sales are the second highest on record – Switzer Super Expert Charlie Aitken is going car shopping.

“I’ve actually visited a few new car dealers lately on a mission to buy my wife a new family wagon,” he says.

“Interestingly, my conversations suggest new vehicle orders have picked up again with customers using cheap finance and manufacturer incentives to upgrade their vehicle. There is only so long you can defer the upgrade/replacement cycle, particularly on the car that does the school run!”

The play on this theme is Automotive Holdings Group (AHE). EBITDA for the first four months of FY15 is up 15% to $61.5 million, driven by a 12% rise in automotive to $43 million.

“It’s worth noting that Automotive Holdings sell more than 100,000 vehicles per year, writes more than $1 billion per annum in auto finance, and filled almost 800,000 repair orders in FY14. It represents 22 passenger brands in Australia including nine of the top 10. They also have nine truck brands,” Charlie points out.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.

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