It's been an interesting start to the week on the ASX. After the mini oil shock markets saw yesterday, ASX oil companies are retreating after it seems the crisis of 1973–1974 won't be repeated. The ASX banks also look to be retreating after a stellar run over the last fortnight.
Although there's always something going on day-to-day on the stock market, it shouldn't distract us from the ultimate goal – buying into quality companies at a price that makes sense.
So, with that in mind, here are 2 ASX companies I would look to spend $10,000 on today.
InvoCare Limited (ASX: IVC)
The InvoCare share price has fallen 15% from the new 52-week high of $16.77 the company booked in mid-July to be trading for $14.30 at the time of writing. I think this company is starting to show some value at these levels – after all, funeral services are an unfortunate but inevitable part of life and they don't take pause for any reason.
InvoCare is the largest provider of funeral and crematoria services in the country and also has a growing presence overseas. I like InvoCare as it has shown a remarkable ability to consolidate and grow market share in an otherwise fragmented industry. I'm also bullish on the company's plans to expand into the pet cremation sector, which I think will be a growth area going forward.
A2 Milk Company Ltd (ASX: A2M)
a2 Milk is a company that has also recently come off the boil – down more than 25% from its July high of $17.12, with a2 Milk shares sitting at $12.72 at the time of writing. Investors were clearly spooked by the company reporting in its 2019 financial year earnings that its earnings margin is expected to be lower in FY20 than FY19.
Still, the company also posted revenue increases of 41% and a net profit bump of 47%. In my view, there's still plenty to like in this company, and today's depressed share price is a definite buying opportunity.
Foolish takeaway
In my opinion, both of these companies are looking opportunistic on today's pricing. I think a $10,000 lump sum would do well in IVC and A2M shares as they are both looking cheap compared with the rest of the market.
