The S&P/ASX 200 Index (ASX: XJO) had a phenomenal day today, reaching an 11-week high and closing 2.93% higher at 5,780 points.
As you would expect, most ASX shares – blue chips and small caps alike – have now risen substantially off the lows we saw in March. But there are some ASX shares still out there that I think are cheap right now, perhaps even absurdly so. Here are 2 for your perusal today.
2 cheap ASX shares worth a look today
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is one such company. It was hit hard in the market crash we saw in March, falling from over $23 per share to under $17 per share. Today, the Soul Patts share price is sitting at $19.01 – around 12.4% off of its lows and well below the highs we saw back in February.
But here’s why I think Soul Patts is still cheap today. The company is dividend royalty for one – having delivered its investors a dividend pay rise every year since 2000. On current prices, this dividend is worth a 3.1% yield (or 4.46% grossed-up).
Secondly, this company has substantial stakes in other ASX businesses. Its shares of TPG Telecom Ltd (ASX: TPM) alone are worth approximately $1.93 billion. Its stake in Brickworks Limited (ASX: BKW) is worth another ~$930 million.
Given Soul Patts’ market capitalisation is just $4.55 billion, it’s my view that the market is under-pricing this conglomerate. Thus, it’s a cheap ASX share well worth considering today.
WAM Global Ltd (ASX: WGB)
WAM Global is another ASX share that I consider to be undervalued. In fact, I’m certain. How? Well, WAM Global is a Listed Investment Company (LIC), which means it invests in a portfolio of other shares on its investors’ behalf. The value of this portfolio is periodically disclosed to the ASX and, as of 30 April, stood at $2.25 a share.
Given the WGB share price is today sitting at $2.05, we can reasonably assume that this is an undervalued company.
Now, WAM Global is a relatively new company that only invests in stocks from international markets. It’s possible investors are taking into consideration the lack of performance track record and currency and sovereign risk and adjusting the share price accordingly. But Wilson Asset Management itself has a long history of delivering market-beating returns for its investors, and I’m confident that this cheap ASX share is an undervalued opportunity today.
For some more ASX shares you might want to check out today, take a look at the report below!
NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!….
Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading over 40% off it’s high, all while offering a fully franked dividend yield over 3%…
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
More reading
- Why ASX 200 travel shares are soaring higher today
- ASX 200 rallies hard, no longer in bear territory
- Why this small-cap ASX pharmaceutical share rocketed 27% higher today
- Latest spending data could drive the ASX retail sector higher
- The latest ASX shares that brokers have just upgraded to “buy”
Motley Fool contributor Sebastian Bowen owns shares of WAMGLOBAL FPO and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. 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 2 ASX shares that are absurdly cheap right now appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/2X3lnp1
Leave a Reply