Which ASX shares would I choose with $6,000? There are so many different options to choose from. After a recent market rally, prices aren't as attractive as a few months ago, but I think there are still some good opportunities.
Ultimately, long-term investing is the way to go, and I think the below names are at such good value they're worth grabbing now for both the next two to three years and the long term.
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Universal Store Holdings Ltd (ASX: UNI)
Universal Store is a retailer with premium youth fashion apparel brands for shoppers between the ages of 16 to 35.
The Universal Store share price is down 52% from November 2021, so today's price is much lower and cheaper. I think it can bounce back once the economy and the outlook improve.
The ASX share recently gave a trading update for the first 20 weeks of FY24 which said sales were up 14.7% year over year and underlying earnings before interest and tax (EBIT) was up $2 million year over year.
Ongoing store expansion makes me believe it can scale effectively and generate more profit in the future.
According to the estimates on Commsec, the Universal Store share price is trading at around 10 times FY25's estimated earnings with a projected grossed-up dividend yield of 9.1%. Those are attractive numbers in my eyes.
Pacific Current Group Ltd (ASX: PAC)
The main purpose of Pacific Current is investing in fund managers. It's invested in 16 boutique asset managers globally. It applies its strategic resources, including capital, institutional distribution capabilities and operational expertise, to help its partners excel.
Growth of funds under management (FUM) is a big help for underlying earnings and dividends. In FY23, management fees grew by 13%, or 22% in Australian dollar terms and ownership adjusted FUM increased by 9% (or 13% in Australian dollar terms).
In FY24, the ASX share is expecting "substantial growth in revenue and profit" and annualization of new investments. It's also expecting between A$2 billion to A$5 billion in new commitments.
According to Commsec, the Pacific Current share price is valued at 11 times FY25's estimated earnings with a projected unfranked dividend yield of 6%.
IGO Ltd (ASX: IGO)
IGO is a green-focused mining business, it owns and operates the Nova nickel-copper-cobalt operation, the Forrestania nickel operation and the Cosmos nickel operation.
It's also invested in a lithium-focused joint venture with partner Tianqi Lithium Corporation, which comprises a 51% stake in the Greenbushes lithium mine and a 100% interest in a downstream processing refinery at Kwinana producing battery-grade lithium hydroxide.
The IGO share price has sunk 44% since mid-July, which I think fully reflects the difficulties faced by both nickel and lithium at the moment.
I don't know when, or if, commodity prices can recover. But, I believe the long-term decarbonisation efforts will lead to greater demand. I think the best time to invest in cyclical names like this ASX share is when resource prices have sunk and there is no end in sight to the negativity.
