S&P/ASX 200 Index (ASX: XJO) shares have been on a mini-tear as of late. Over the month of October so far, the ASX 200 is up around 6.5% and is sitting at a new post-March high today of 6,201 points (at the time of writing). For many value investors out there, this represents a mixed blessing. Sure, ASX 200 shares are going up and making us all a little richer on paper. But the higher share prices climb, the less attractive it is to buy more. It's the classic investing 'double-edged sword'.
But luckily for those investors, a rising tide rarely lifts every boat on the ASX. So here are two ASX shares that I still think are looking dirt-cheap today
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2 ASX shares looking dirt-cheap today
South32 Ltd (ASX: S32)
South32 is a mining company that used to be a part of BHP Group Ltd (ASX: BHP). That is until it was spun-off back in 2015.
South32 holds the mining operations of the 'old BHP' that are outside the four 'pillar commodities' of coal, iron ore, copper and oil which BHP focuses on today. As such, it holds a range of commodity projects, which include everything from aluminium and lead to silver and nickel. This gives South32 a nicely diversified asset base in my view.
South32 shares are not expensive today. In fact, I would call them dirt cheap at the current share price (at the time of writing) of $2.15. Although South32 has recovered from the $1.58 levels it plumbed during March, it's still well below the $4.20-ish prices it was commanding just two years ago. Thus, I think this company is pretty cheap today and would make a good long-term investment in a diversified dividend portfolio.
BetaShares FTSE 100 ETF (ASX: F100)
This exchange-traded fund (ETF) is another ASX share that I think is looking dirt-cheap today. F100 is an ETF that tracks the 100 largest companies listed on the London Stock Exchange. The United Kingdom is not a country that features heavily in most ASX investors' portfolios. And yet it houses many top-tier global companies. You'll find pharma giants AstraZeneca plc (LSE: AZN) and GlaxoSmithKline plc (LSE: GSK) here, as well as HSBC Holdings plc (LES: HSBA), sin stocks British American Tobacco plc (LSE: BATS) and Diageo plc (LSE: DGE), and household essentials king Unilever plc (LSE: ULVR) among its top holdings. These are all companies that you won't find likenesses of on the ASX, which lends some great diversification in my view.
I believe this ETF is looking very cheap at the moment. Its 52-week range stands at $7.20-$11.50, and yet today, the F100 unit price is asking $8.33. Yes, the UK is currently dealing with a plethora of problems, including the calamitous Brexit process, as well as a nasty second wave of coronavirus infections. Even so, for a long-term investment, I think these can be looked beyond. As such, F100 is a fund I would be very happy to buy shares in today.
