The coronavirus is causing a dramatic selloff of shares around the world. The ASX 200 (INDEXASX: XJO) fell over 7% and most other share markets dropped a similar amount on Monday too.
I think there are so many nicely-priced opportunities right now. Don't forget, interest rates are now incredibly low, so once we get through the economic effects of the infection I think there could be a very strong recovery. However, that could be six or more months away.
With that in mind, I think these ASX shares are very good opportunities today:
Altium Limited (ASX: ALU) – $3,000
The Altium share price has fallen heavily since the release of its result when it revealed that the coronavirus would cause the electronic PCB software business to hit the lower end of its guidance in FY20.
Despite that short-term setback, Altium is still very well-placed to reach its long-term targets of US$500 million revenue and a 40% earnings before interest, tax, depreciation and amortisation (EBITDA) margin.
Altium is one of those businesses with no debt, a healthy amount of cash on the balance sheet, a great leadership team, attractive accounting policies regarding depreciation and a growing dividend.
I think Altium is on its way to becoming an ASX tech blue chip, this lower price looks good to get some exposure to this great business.
MFF Capital Investments Ltd (ASX: MFF) – $3,500
MFF Capital is one of the best-performing listed investment companies (LICs), it's managed by Chris Mackay – one of the best fund managers in Australia.
Its share price has fallen by 22% since 21 February 2020 and I think this is a good opportunity to get indirect exposure to some of the best growth shares in the world like Visa and Mastercard, which make up around a third of the portfolio.
MFF Capital recently paid out a special dividend, which was perfectly timed just as this infection was spreading to the western world.
Mr Mackay bought shares at a higher price than today's $2.96 and it was valued at a 10% discount to the net tangible assets (NTA) at the end of last week, but its NTA would have fallen since then.
WiseTech Global Ltd (ASX: WTC) – $1,500
WiseTech hasn't ever been on my buying radar, as regular readers would know. I've always thought its valuation just didn't make sense and the acquisition strategy wasn't the most compelling idea I've seen.
However, the business undoubtedly has been increasing its revenue and profit strongly each year. The WiseTech share price is down 30% since 21 February 2020 and it's down 54% since it reported in the middle of last month.
There are many things to like about WiseTech and its share price plunge now makes it seem decent value looking out two or three years. Supply chains and global distribution has certainly been affected, but it will bounce back at some point. This will likely be very good news for WiseTech's earnings and investor sentiment.
It's still generating decent free cashflow and has a solid amount of cash on the balance sheet.
Webjet Limited (ASX: WEB) – $2,000
The travel business has been another of the most affected shares on the ASX since 21 February 2020 with its share price down by around 50%.
Webjet's earnings will undoubtedly be affected in the six months to June 2020, perhaps even the first half of FY21. But travel will very likely return to normal at some point over the next two or so years, which is a pretty short-term timeframe in investment terms.
It's one of the better-placed travel businesses to get through this and I like some of the initiatives that it is investing in.
The share price may fall even further if there are more travel bans, which is why I only allocated a theoretical $2,000 to it.
Using one FY22 estimate, it's trading at 7x FY22's estimated earnings. As long as Webjet can get through this, it looks extremely cheap.
Foolish takeaway
All four of these shares look good for an investment with three years or longer in mind. Webjet definitely looks the cheapest, but I'm not confident that it's the bottom yet – so I'd only buy a small-ish parcel today. However, Altium and MFF Capital are getting more attractive every day.
