The share market very rarely values a share at a fair value. Either the share is overpriced or under-priced.
Sadly, the market has a habit of pricing the 'good' shares at a very expensive level, making it hard to justify a buy.
Still, patience is a virtue and it may be that the target share in question may fall at some point.
I don't mind if a share falls in the short-term if I own it because it gives me the opportunity to buy more of it, as long as the long-term share price growth is good.
Here are two shares I really hope fall in value so that I can buy at a good price:
BWX Limited (ASX: BWX)
BWX is a different business to most others on the ASX. It's a natural beauty business with many brands in its stable.
Sukin is its most well-known brand, with a large range of skincare products. In FY17 Sukin grew its total revenue by 53.9% and export revenue grew by 103.2%.
The key reason why BWX has done so well in the second half of the year is that it has made a few acquisitions.
BWX had virtually no presence in the USA last year, but it acquired Mineral Fusion and Andalou Naturals Inc. which are both exciting in their own right, but it gives BWX the opportunity to break into the huge American market.
That's why the share price has grown by 90% this year to $7.53. It's currently trading at 28x FY18's estimated earnings. If it drops back to near $6 I'll be interested in buying more shares.
REA Group has grown to be a lot more than a simple property site over the years. It owns some of Australia's most popular real estate sites such as realestate.com.au, flatmates.com.au and realcommercial.com.au.
Some market commentators thought that if the Australian market slows down REA Group could suffer from lower revenues. However, the business has done a great job of squeezing out more revenue from each property advertisement.
In its quarter update to 30 September 2017 REA Group revealed that revenue had grown by 21% and earnings before interest, tax, deprecation and amortisation had grown by 24%.
The ability to keep growing strongly regardless of what the property market is doing is a sign of how much quality the business has.
However, REA Group is no secret to the market, which is why the share price has grown by 40% to $77.78 during 2017.
REA Group is currently trading at 37x FY18's estimated earnings with a grossed-up dividend yield of 1.67%.
Foolish takeaway
Both businesses are very compelling investments and I hope there's an opportunity in the future to snap up some shares, even if it's only a brief dip.
