Although the S&P/ASX200 (ASX: XJO) index has opened the week higher today, a rising tide certainly doesn't lift all boats on the share market. But while investors typically love to flock into well-loved shares, the real money is often made by turning over the rocks that other investors are avoiding like the plague.
So here are 2 ASX shares that I think are worth turning over today.
A2 Milk Company Ltd (ASX: A2M)
A2 Milk is a company that used to be an ever-increasing growth stock but has come off the boil somewhat over the past month. The A2M share price hit a new all-time high of $17.30 in late July, but just a month later, the same shares were going for $13.20 (a 23% drop). Although A2 shares have since recovered somewhat at today's price of $14, it's still looking a lot cheaper than a month ago.
A2 Milk disappointed investors with its 2019 earnings report, and this has been the major catalyst for its share price movements. Despite A2 reporting a 47% lift in profits, investors headed for the exits, which may have been aided by the company announcing it was exiting the UK market. While this may have been due to a lack of commercial success, it could also be related to Brexit and the political turmoil the UK is experiencing, and so I still see long-term value in A2 Milk.
Duxton Water Ltd (ASX: D2O)
A rather alternative company to look at, Duxton is a company that trades in the water market – providing a portfolio of water assets, entitlements and supply solutions to mainly irrigators and farmers. As we all know, Australia is an extremely dry continent prone to droughts and this makes Duxton the gatekeeper of a valuable asset that will only likely appreciate over time due to climate change. At today's price of $1.31 (at the time of writing), the Duxton share price is below where it started the year, despite the company reporting that as of July 31, D2O stock has a net tangible asset value per share of $1.59. When the market is offering up a quantified bargain like this, it might be worth a look.
Foolish Takeaway
Both of these companies would make for some good bargain hunting today. I like Duxton from a valuation perspective a little more on today's prices, but A2 Milk has proved itself to be an evergreen winner as well.
