There are a number of really good ASX shares I’d be willing to buy if I were given $50,000 to invest.
The share market has been declining in recent times, but I think this opens up very good opportunities to buy growing businesses for cheaper prices.
Just because a price is lower doesn’t mean it’s better value, but I think these ASX shares look really good today:
Redbubble Ltd (ASX: RBL)
The Redbubble share price fell under $3.50, representing a significant decline from $7 in January 2021.
Redbubble has been generating growth over the years, but COVID-19 has accelerated that. As long as the business keeps growing then a lower price is an attractive opportunity. Revenue keeps rising at an impressive double digit rate.
It’s going to pursue a high-investment, high-growth strategy to capture market share. It can then achieve much stronger scale benefits in a few years.
New product categories and higher repeat customer usage are attractive long-term trends.
I think this e-commerce ASX share is a very good long-term option for patient investors.
Pushpay Holdings Ltd (ASX: PPH)
The Pushpay share price is around $1.50, down from $2.20 in October 2020.
The FY21 result had everything that investors could want from the electronic donation and church management business. It saw strong processing volume growth, improving profit margins, great cashflow and plans for future growth in the Catholic segment.
It’s expecting further operating profit growth in FY22 and it has long-term optionality to expand into other geographies and even other donation categories.
I’m more confident on Pushpay as it said that it isn’t seeing digital givers revert back to cash donations. Digital payments seem to be here to stay.
MFF Capital Investments Ltd (ASX: MFF)
MFF Capital is one of my favourite listed investment companies (LICs). It has everything that I look for in a really good LIC.
It has made good long-term returns. Chris Mackay is a very effective, long-term focused and aligned portfolio manager (who owns well north of $100 million MFF Capital shares, actually it’s much closer to $200 million).
The current portfolio is high-quality with names like Visa, MasterCard and Amazon. MFF can invest anywhere globally, so that’s very useful for finding the best opportunities.
As a bonus, it seems to have a goal of steadily growing the dividend over time which is a good way to access some of the investment returns through cash payments.
At the moment the MFF Capital pre-tax NTA discount is more than 10%.
Brickworks Limited (ASX: BKW)
Brickworks is one of my favourite asset discount plays right now. It does have a high quality portfolio of building products – like Austral Bricks – it’s the other divisions that give me the confidence to invest in Brickworks.
It owns almost 40% of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), which gives great underlying diversification for Brickworks with its portfolio of ASX shares. Most importantly, the dividends and capital value of WHSP steadily grows over time.
The ASX share also has a 50% stake of a high-quality industrial property portfolio. Since COVID-19 came along, industrial properties are in higher demand for the e-commerce and logistics. When the latest warehouses are finished, such as the one for Amazon, it will increase the underlying value of Brickworks significantly, as well as increasing cashflow to pay higher dividends.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is a really great business in the healthcare technology space in my opinion. It wants to provide a much higher level of service for women who are getting breast cancer screenings.
It has already reached a market share of around a third and the business is seeing an increase in its average revenue per user (ARPU) at very high gross profit margins.
The acquisition of CRA Health was a smart buy by the ASX share, not just to increase its market share, but for its risk assessment tools and integration with electronic health records (EHR), which is important for its long-term plans.
There is also steady progress in Europe which could significantly increase the addressable market for Volpara if it can start winning contracts there.
