3 shares now trading at crazy cheap prices

Some shares are still trading at crazy cheap prices because of the coronavirus. I think it’s worth considering if they are buys today or not.

The best time to buy shares is when they’re at much cheaper prices, which is what has happened to plenty of businesses.

Here are three shares at crazy cheap prices that could be worth looking at:

Challenger Ltd (ASX: CGF) 

The Challenger share price is down 57% from where it was at 21 February 2020. The annuity provider has seen a painful hit, but the company is still predicting that it can hit its profit before tax guidance in FY20 which is reassuring.

Over the long-term I do think that the lower interest rates could be harmful to Challenger as it needs to generate a return to pay the annuities. A lot of its investments are currently in bonds, which are earning a very small return. But the demographics are still in its favour. 

At the current crazy cheap share price Challenger offers a trailing grossed-up dividend yield of 11.4%.

Brickworks Limited (ASX: BKW) 

The Brickworks share price is down 34% since 20 February 2020. I think this is a crazy cheap price for a reliable share that has already been around for many decades.

Construction is clearly going to be affected this year as projects finish and new ones are delayed (or cancelled). However, I believe this is just a shorter-term problem and projects will return sometime next year.

In the meantime, Brickworks receives reliable cashflow from its other assets being its ‘investments’ division and 50% stake in an industrial property trust which should be able to fund the grossed-up dividend yield of 6.25% fore the foreseeable future.

Costa Group Holdings Ltd (ASX: CGC)

The Costa share price is down 38% from a year ago. The drought and other one-off issues caused a lot of hurt to Australia’s biggest horticultural player.

I think a share price under $3 is a crazy cheap price considering food prices are rising and Costa continues to have attractive global growth aspirations.

There has even been a bit more rain recently which could help the company as well. Whilst it doesn’t have a large dividend, it is still paying one which hopefully shows the confidence of the board in the company’s future.

Foolish takeaway

I think each of these shares are trading at crazy cheap prices for what profit they may be generating in two or three years. If I had to pick one of the three it would be Brickworks for its defensive assets and US growth prospects.

More reading

• Is the ASX 200 getting too far ahead of itself?
• 3 Warren Buffett ASX dividend shares to buy right now
• 3 ASX 200 dividend shares I’d buy today
• The 5 ASX shares that were last week’s biggest fallers
• Meet the ASX 200 company that just posted a 90% surge in profit

Motley Fool contributor Tristan Harrison owns shares of COSTA GRP FPO. The Motley Fool Australia owns shares of and has recommended Brickworks, Challenger Limited, and COSTA GRP FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 3 shares now trading at crazy cheap prices appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2WLkSQ7