There are a number of shares on the ASX that I think have simply gotten far too expensive to buy.
Don't get me wrong, I think WiseTech Global Ltd (ASX: WTC), Pro Medicus Limited (ASX: PME) and many others are all high-quality options, the problem is that nothing is a buy at any price.
I think there are better priced options to consider such as these two:
Bapcor Ltd (ASX: BAP)
The auto parts business has a high-quality network of businesses in Australia and New Zealand, particularly its Burson chain, which arguably is just as defensive as something like Transurban Group (ASX: TCL). Interest rates have fallen, new car sales are dropping and the company is predicting profit growth, yet the share price has fallen over the past year. Fewer new cars should mean more car owners look to replace broken parts on their car more frequently, rather than just buying a new car.
Not only do I think the share price should be a little higher, but the growth potential of Burson in Asia is compelling over the next three to five years (or more).
It also has a solid grossed-up dividend yield of 3.7%
Webjet Limited (ASX: WEB)
Since the Federal election in May the Webjet share price has fallen over 19%, despite the renewed optimism about discretionary businesses and the interest rate falling – which should boost all asset prices.
Webjet offers a number of positives including strong organic growth (particularly in its WedBeds business), diversified earnings streams like Umrah Holidays International and new initiatives like Rezchain and Rezpayments.
It also has a fast-growing dividend with a grossed-up dividend yield of 2.2%.
Foolish takeaway
I think both businesses have promising medium-term futures and are priced much more attractively than the ASX tech shares. At the current prices I'd probably choose Webjet because of its global earnings base, whereas Bapcor only has a very small presence in Asia at the moment.
