The ASX 200 (INDEXASX: XJO) is down another 0.8% today as the coronavirus selloff continues.
Investment opportunities are everywhere. The market may fall further, or it may not. Both the US Federal Reserve and the Reserve Bank of Australia (RBA) are thinking about cutting rates this month. I think they will. They cut previously when things were not looking anywhere near as dicey.
These are two of the shares that I'm close to buying:
Altium Limited (ASX: ALU)
One of the world's leading electronic PCB software businesses has seen its share price drop just like the rest of the market. Since 17 February 2020 it's down 25.6%.
It has a wonderful long-term future with exposure to the rise of the Internet of Things. It has excellent management. Its profit margins keep rising. There are a lot of factors to like about Altium.
But, most importantly at times like this, it generates excellent cash flow (compared to profit) and it has a lot of cash sitting on its balance sheet. I think this means the business will sail through the economic fallout of the coronavirus, even if there's a global downturn.
PM Capital Global Opportunities Fund Ltd (ASX: PGF)
This globally focused listed investment company (LIC) is experiencing two problems. The first is that the shares in its portfolio are dropping because of the coronavirus. However, its shareholders are selling out of the LIC even harder, which may be opening up an even larger discount to its net tangible assets (NTA).
It's now trading at a 25% discount to the NTA reported at 21 February 2020, that NTA was calculated before the falls last week. Even if one assumes a 10% drop in the portfolio value, the discount to the NTA would appear to now be in the mid-to-high-teens.
The weekly NTA should be released tomorrow. Using the 12 months of trailing dividends, it now has a grossed-up dividend yield of 5.2%.
Foolish takeaway
Both businesses are trading much more attractively than they were a month ago. I particularly like the look of PM Capital Global Opportunities right now – it's share price is lower and yet the attractive NTA discount is still there.
