ASX share prices are always changing, so the best investment pick may change as the values change.
For much of the last four months one of my preferred investment ideas was Pushpay Holdings Ltd (ASX: PPH). However, the strong Pushpay share price performance has meant I'm now looking at other shares as investment ideas.
It's getting harder to choose good value ideas right now because of how strongly the high quality growth companies have performed.
But I still think there are some good choices out there. I'd happily invest in these two ASX share ideas today:
Share 1: Vitalharvest Freehold Trust (ASX: VTH)
This is an agricultural real estate investment trust (REIT) which is currently invested in berry and citrus farms. These farms are among the largest in Australia. Food is important, particularly in these COVID-19 times.
There is a value play here. At 31 December 2019 the REIT said its net asset value (NAV) was $0.95 per share. This means, assuming the same NAV, the Vitalharvest share price is trading at a 20% discount to the NAV.
What's of more interest to me is the Primewest Group Ltd (ASX: PWG) involvement. The fund manager has come in to take over the management whilst also taking up a sizeable stake of the food REIT.
It plans to change the name to Primewest Agri-Chain Fund and invest in a wider group of different assets (not just farms) including processing and manufacturing facilities for food, food and beverage packaging facilities and storage facilities related to food. It may also find opportunities in New Zealand, not just Australia.
I think the shift to new management and taking on an acquisition strategy could be a smart move to diversify Vitalharvest's asset base. Primewest is going to aim for high-quality locations with long-term leases for the ASX share.
Using the current distributions for 2020, it offers a distribution yield of 6.25%.
Share 2: Bubs Australia Ltd (ASX: BUB)
I think plenty of ASX growth shares right now are a bit too pricey to get into my portfolio. However, I think Bubs is well placed to become a much larger business over the long-term.
It's an infant formula business with a specialty in goat milk products. I'm encouraged by the growing distribution network that Bubs has created to get its range of products out to as many consumers as possible. It's now sold through Coles Group Limited (ASX: COL), Woolworths Group Ltd (ASX: WOW), Baby Bunting Group Limited (ASX: BBN), Chemist Warehouse and Alibaba.
It usually takes a while for consumers to become aware of, and trust, a new infant formula brand. Bubs' current distribution network has good growth potential for the next few years as it builds its brand presence.
I'm also excited by the new (cow) organic grass fed infant formula that Bubs has launched, which opens up a much larger addressable market for the company.
Recent growth has been really good for the ASX share. In the quarter ending 31 March 2020, quarterly revenue grew by 67% year on year to $19.7 million. Revenue was up 36% compared to the previous quarter.
I think Bubs has a very profitable future ahead, particularly as its gross margin keeps improving as the ASX share gets bigger with more products sold.
The fact that it's now cashflow positive is a pleasing milestone because it means its impressive $36.4 million cash balance won't be eaten up from just running the day to day operations of the business. It can be invested for further growth.
Bubs is growing strongly in other markets outside of China, such as Vietnam. I'm not suggesting that Bubs is going to become as large as A2 Milk Company Ltd (ASX: A2M), but I think it's on a very good growth trajectory.
Foolish takeaway
If growth is your main aim then I think Bubs looks like a compelling ASX share with a long-term investment timeframe. Vitalharvest looks like a solid dividend option at today's share price, plus it's trading at a nice discount to the NAV.
