A number of quality ASX shares have dropped in price over the last few months and I think they are now looking like good value opportunities.
I’d happily buy these two businesses which look like they have good futures:
Baby Bunting Group Ltd (ASX: BBN)
Baby Bunting is like the Bunnings of baby products. It sells many products that a new parent could need for their child’s care or room.
The Baby Bunting share price has fallen by more than 20% since the start of the 2022 year. I think this is an opportunity.
It’s achieving a lot of the things that I’d want to see from a retailer: double-digit sales growth, solid online sales growth, rising profit margins, an expanding store network and international expansion. Readers can check out the FY22 half-year result.
The company is also looking at the wider baby goods market, so it’ll be interesting what else Baby Bunting can sell.
The ASX share is also growing its dividend, I think it’s a decent option for income.
WAM Microcap Limited (ASX: WMI)
This business is a listed investment company (LIC) which owns a diversified portfolio of dozens of the most compelling small cap ASX shares.
Amid all of this uncertainty for the ASX share market and global share market, there are probably a number of microcaps that are attractive now after the falls. The WAM team will hopefully pick some good choices in the recent carnage.
The WAM Microcap share price has seen a 31% drop since the end of March 2022. I think that equates to an attractive drop in the value of the underlying portfolio.
I believe the LIC is one of the good ones to look at during market instability. During normal (and good) times, I think that the WAM Microcap investment team have a good chance of producing outperformance.
The good long-term returns can fund, and are funding, a large and growing ordinary dividend for shareholders. It’s the dividends that particularly attracts me to this ASX share.
While it’s not trading at a discount to the net tangible assets (NTA), I think WAM Microcap is worth the premium.