You would negotiate for a discount when purchasing a car, so why wouldn't you seek a bargain when looking for ASX shares to buy?
After all, every extra cent that you pay diminishes your future returns.
This week Catapult Wealth portfolio manager Tim Haselum named precisely two such cheap shares to buy right now:
China tariff problem could be solved soon
Treasury Wine Estates Ltd (ASX: TWE) shares really have had a tough few years.
The stock price was hovering in the $17s when the COVID-19 market crash hit in early 2020.
It's since gone nowhere near those previous levels, currently trading in the low $11s. Treasury Wine shares have even sunk 14.5% since the start of this year.
A big blow was when China imposed massive tariffs on Australian wine imports in retaliation for Canberra's call for an enquiry into the origins of the pandemic.
Haselum told The Bull that the business has pivoted to other customers because of that headwind.
"The wine company has found other global markets after China imposed hefty tariffs on imported Australian wine."
The current lethargy in the stock price, he believes, is an overreaction from investors.
"Investors have oversold the stock on what some consider a mixed or disappointing outlook," said Haselum.
"We believe the market is ignoring the possibility of China winding back tariffs on Australian wine."
This is a development that's been on the cards since a change in federal government last year.
"Treasury Wines and other wine companies may benefit if China reduces tariffs and trade resumes to meaningful levels. We believe Treasury Wine's share price is trading at a discount."
Has property hit rock bottom?
Real estate has taken a battering after 12 interest rate rises.
But Haselum reckons the pain might be nearing an end, so it might be time to consider ASX property shares.
And to properly diversify, an exchange-traded fund (ETF) might be the answer.
"With bond yields looking close to a peak, it may be a good time to consider investing in Vanguard Australian Property Securities Index ETF (ASX: VAP)," said Haselum.
"This exchange traded fund invests in property securities listed on the ASX. The ETF invests in the retail, office, industrial and diversified property sectors."
The fund share price is down 10.2% since a 3 February peak.
Haselum feels like many of the real estate shares that the ETF holds have now had all the bad news baked in.
"Large discounts to net tangible assets have downside priced in."
