With the markets shaking off the pessimism of last week this morning and the S&P/ASX 200 (ASX: XJO) index banking a 0.45% increase, it's certainly a lot harder to find shares going for a bargain than last week.
Despite this, there are always winners and losers in every market, and finding today's losers can also mean buying tomorrows winners on the cheap.
So here are 2 ASX shares that I think are looking cheap today and might merit a second look.
Nufarm Limited (ASX: NUF)
Nufarm shares have been in freefall today, dropping 17.53% between open and the time of writing to $5.08 a share. The catalyst for this drop has been a half-year earnings update from Nufarm this morning, in which the company flagged a $9 million hit to earnings in FY20. Also weighing on the company has been 'substantially lower' demand in North America as well as 'difficult' trading conditions.
Still, I think this could be a temporary reaction to some temporary setbacks for this company. Thus, today's calamitous share price drop might prove to be a good 'buy-the-dip' opportunity.
Westpac Banking Corp (ASX: WBC)
Westpac shareholders are still undoubtedly reeling from last week's revelations that Westpac may have breached anti-money laundering/counter-terrorism laws up to (or even over) 23 million times. After falling another 1.13% today to $24.49, WBC shares are now approaching levels not seen since the depths of last year's Christmas share market slump (and before that, 2012).
Whilst the picture is looking rather bleak for Westpac, especially with (I'd wager) a pretty hefty fine coming its way – it still might be a good opportunity to pick up some WBC shares for yield. Even after the dividend cut Westpac dished out a few weeks ago, on these new prices WBC shares are offering a starting yield of 7.03% – or 10.07% grossed-up. That's not bad for a bank offering sub-2% term deposits at the current time.
Foolish takeaway
Whilst neither of these companies is very popular with investors right now, most investors don't get rich by following the crowd. Of course, both of these companies are being beaten down for a reason, so make sure you investigate the full story before buying into this kind of trend.
