I’m always on the lookout to buy ASX200 shares at a discounted price. Thursday’s sell-off has created attractive opportunities.
Despite the ASX200 still being not far off its 2019 high, there are a few shares that are actually getting closer to their 2019 lows.
Brickworks Limited (ASX: BKW)
The share price of Brickworks is largely backed by the value of its shares of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), which has been drifting lower in recent months. That alone makes it a good value buy in my eyes.
Investors are also worried about what direction the Australian construction sector is headed, but that will probably turn around in a couple of years.
It seems the fall of Brickworks’ share price is mostly justified, but I think it’s times like this that make it a good time to buy shares of cyclical businesses when they are lower.
The value of Brickworks’ industrial property assets is robust and there is good long-term growth potential with the recent US brickmaker acquisition of Glen Gery over the next five years and further into the future.
Duxton Water Ltd (ASX: D2O)
Duxton Water purely owns water entitlements and leases them out. The Duxton Water share price has been falling over the past four months despite the dry conditions remaining far below average, the net asset value (NAV) of Duxton shares rising and a growing dividend paid to shareholders.
Some high value crops like almonds also have a high water demand, meaning the water values could steadily rise over time – with short-term volatility from wetter or drier years.
The share price is trading at a 12% discount to the post-tax NAV at 31 July 2018.
Webjet Limited (ASX: WEB)
The online travel business has seen its share price fall by 25% since the middle of May, which I think is creating an interesting buying opportunity for a business that is growing WebBeds at a strong organic rate, Webjet is also opening new business units (blockchain-related and religious travel) and it’s increasing profit margins.
There are many factors to like about Webjet, the only thing I’m not sure of is how its earnings will go during a local or global recession. Time will tell, but over the long-term I think Webjet could be one of the better buys on the ASX as a ‘growth at a reasonable price’ option.
It’s trading at only 12x FY21’s estimated earnings.
I think all three shares are very interesting opportunities at the moment. If Webjet is able to keep growing profit over the coming years it looks like the best growth option, but Brickworks and Duxton Water could be solid dividend options for the longer-term.
Other shares that took a hit this week and could be too cheap to miss are these solid ASX growth ideas.
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Motley Fool contributor Tristan Harrison owns shares of DUXTON FPO and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Brickworks, DUXTON FPO, and Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019