For the income investors: Paragon Care (PGC)

This company distributes specialist equipment such as beds, mattresses, stainless steel equipment to hospitals and aged care centres. While growth outlook from capital sales is now limited due to less brownfield development in the private hospital sector, the demand for hospital and aged care beds is relatively stable. Their last update to 31 October 2018 says 7% organic growth and 40% gross margin, with a major cost out program commencing in the 2HFY19. A combination of organic growth and a cost out program on the back of recent acquisitions should support revenue growth and a dividend yield of 6.3%.

For the shoppers: Baby Bunting (BBN)

Baby Bunting is Australia’s largest nursery product seller. This company is in an upgrade cycle. The recently upgraded profit expectations and this upgrade cycle is likely to continue, given all major competitors have gone bust and it is the last one standing. We’ve seen Baby Bunting’s four largest competitors shut up shop. While like-for-like sales are strong at ~ 9.5%, this is likely to accelerate on the back of weaker competition. The company is planning to open 85 stores by FY24.

For the growth investors: Aristocrat (ALL)

Aristocrat is a gaming company with dominant market positions in Americas, Australia & New Zealand. Acquisition of Big Fish follows Plarium as the second big acquisition in the growing social gaming space. Two thirds of revenue is now recurring, which helps to stabilise earnings. Outlook for the sector is subdued, so market gains are likely to come at the expense of competitors. As always, regulatory risk is a key risk as is research and development from stronger, cashed up players. 

For the naughty speculative stock chasers: LiveTiles (LVT)

Livetiles develops tools to help companies develop internal intranets easily. It has a strong partnership with Microsoft, which is a key strength as well as a key risk. Livetiles received the Modern Workplace Transformation award at Microsoft’s annual global Inspire conference. Livetiles Bots helps automate mundane and repetitive tasks. Livetiles and Microsoft have launched a new program to help companies with artificial intelligence capabilities. The program has launched in Australia and will go global to the US and then Europe.