The recent volatility has opened up a number of appealing ASX share opportunities, in my view. I'm going to talk about two stocks that look very cheap, which could be great buys.
We can't control what share prices do in the short-term, but we can control at what price we decide to invest at.
An investment isn't necessarily better or worse just because the share price has declined. But, for the right ASX share, paying less is likely to lead to better returns. With that in mind, below are two ideas I think fit the bill.
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Centuria Industrial REIT (ASX: CIP)
Real estate investment trusts (REITs) like this one look very appealing, in my view. It owns a portfolio of high-quality industrial properties across Australia.
Its portfolio is benefiting from a number of tailwinds including e-commerce growth, higher refrigeration demand (for food and pharmaceuticals), data centres and so on. This is helping drive the rental potential of the business, increase the value of the properties and boost the distribution.
The current high interest rate environment is making it difficult for REITs because of the higher cost of debt and the headwinds for property valuations. But, with the possibility of lower Australian interest rates in the next year or two, this could be another favourable tailwind.
Why does it look so cheap? The business announced in February what its underlying net tangible asset (NTA) value was at the end of December 2024 – $3.89 per unit. The current Centuria Industrial REIT share price is trading at a 27% discount to this, which looks like a steal to me.
Nexgen Energy (Canada) CDI (ASX: NXG)
This ASX share is a Canadian company that's focused on developing the Rook I project into the largest, low-cost producing uranium mine globally. It's tapping into the high-grade Arrow deposit, which was discovered in February 2024.
The world has a growing need for energy that doesn't produce emissions. Nuclear is already part of the global mix and could play an increasing role in producing baseload power.
NexGen has been going through a federal approval process, which is in the final stage and it continues to announce good news relating to its drilling efforts. Hopefully, it's not too long until the company can get on with project construction.
The fund manager L1 believes that once developed, the Arrow deposit has the potential to generate more than C$2 billion of cash flow annually.
The fall of the Nexgen Energy (Canada) CDI (ASX: NXG) share price is down more than 40% since December 2024, so I think this is a great time to invest.
