Astute stock selection pays off handsomely

October 1, 2015

Our outstanding stock pick over the past 12 months has been the relatively little known AMA Group – at least is was little known a year ago. AMA Group (AMA) operates a chain of collision repair centres and services workshops for brakes and transmissions. The company also is a manufacturer and wholesale distributor of alloy vehicle protection equipment, automotive and electrical accessories. The group has been growing by acquisitions of smaller operators and capped it off with the recently announced agreement to acquire Gemini Accident Repair Centres, Australia’s largest accident repair centre. With a market penetration of around 5% following the latest acquisition, the combined entity certainly has great potential to make further acquisitions in this gradually consolidating sector of the market.

We had been watching company developments with great interest over the past 12 months and made our first foray of investment in the company about 5 months ago. Over the past fortnight Morgan Wealth clients were advised to take profits on about one-third of their holdings in AMA when their returns were around 75% to 80%.  Morgan Wealth LogoA great return in a very volatile market over the past 12 months – a stock pickers’ paradise.  Visit our website at www.morganwealth,com.au to see our other great stock picks over the past 12 months.

This is general advice only and should not be acted upon without seeking personal financial advice from your financial adviser. You may call us for a review of your own portfolio on (03) 9859 7899 and avail yourself of our extremely low brokerage rates.

Our Top Stock Recommendations
Percentage returns as capital growth and dividends for year ended 31 May 2017
Challenger Limited
37.15%
Altium Ltd
35.26%
Macquarie Group
26.02%
National Aust Bank
18.23%
ResMed Inc
17.39%
ANZ Banking Group
16.21%
Arena REIT
14.14%
Folkestone Education
13.67%
CSL Limited
13.18%
Sonic Healthcare
11.73%
ASX200 Accum Index (for comparison)
10.96%