There are at least 3 shares I’d buy if the coronavirus selloff gets worse again.

The best time to buy shares is when they’re trading at a much cheaper price than before. During March 2020 we saw plenty of share prices trading a lot cheaper compared to early February 2020. A lot of those shares have now recovered strongly so I’m not jumping to buy them today.

Here are three shares I’d buy if the coronavirus selloff gets worse again:

Altium Limited (ASX: ALU)

Altium is one of my favourite long-term tech ideas. It has generated excellent growth over the past five years and I think there’s a lot more to come in the 2020s. Altium is aiming for market leadership by 2025 with 100,000 Altium Designer subscribers and US$500 million revenue.

Every new vehicle, device or other item needs electronic PCB software to help design it. Altium is an essential part of creating the future’s technology. I like that it has no debt, growing profit margins and a good cash balance.

At a share price above $35 I don’t think Altium is the most obvious buy right now. I’d rather buy it under $30 considering Altium is warning of tougher conditions due to the coronavirus.

Pro Medicus Limited (ASX: PME)

Pro Medicus is another top-quality growth share with no debt and a growing cash balance. It’s a leading global provider of radiology IT systems.

One of the most attractive thing about Pro Medicus – apart from its long-term growth prospects – is its high profit margins. In the FY20 half-year result it reported a 50.2% earnings before interest and tax (EBIT) margin. That’s a very strong operating margin for an ASX share.

However, the share price has grown from under $16 to above $28. I’d be very interested in looking at Pro Medicus under $20 considering how low interest rates are. Growth shares are worth more because of lower interest rates.

A2 Milk Company Ltd (ASX: A2M)

A2 Milk has been one of the best performing shares on the ASX over the past five years. It has no debt and it has been building its impressive cash balance for years.

The coronavirus situation is boosting demand for A2 Milk’s products. The company is also being careful with its spending, which has led the company to expect the earnings before interest, tax, depreciation and amortisation (EBITDA) margin to be higher than previously expected.

I like that the company is still aiming for a 30% EBITDA margin because that balances growth and short-term profit. The great thing about A2 Milk is that there are still so many more regions to grow into. It’s just only just getting started in the east of the US and Canada is the next target.

At around $18 it’s definitely not cheap. I’d start to be interested again if it were to drop under $17 under the current conditions. A Chinese issue could easily be much more damaging.

Foolish takeaway

I think each of these shares are among the best on the ASX. Altium is my favourite of the three, but they could all be strong performers. But I’d prefer all of them to be more than 10% cheaper before thinking about buying. At today’s price I’d probably pick A2 because it’s still growing strongly whereas Altium has warned of impacts.

More reading

• How to become a millionaire with a $5,000 investment in ASX 200 shares each year
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• $3,000 invested in these 3 ASX industries could make you a fortune in the future
• The Bubs share price is up 20% in May, will it catch up to the A2 Milk share price?

Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia owns shares of A2 Milk and Altium. 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.

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I like to keep a close eye on which shares have experienced meaningful insider buying.

This is because insider buying is often regarded as a bullish indicator, as few people know a company and its intrinsic value better than its own directors.

A number of shares have reported meaningful insider buying this week. Here are a couple which have caught my eye:

Adairs Ltd (ASX: ADH)

According to a change of director’s interest notice, one of this homewares retailer’s independent non-executive directors has been buying shares this month. The notice reveals that Independent Non-Executive Director Kiera Grant picked up 106,000 shares through an on-market trade on 15 May. The director paid a total of $150,339.80 for the shares, which equates to an average of $1.42 per share. This purchase lifted Grant’s holding to a total of 142,572 shares.

Earlier this month, Adairs revealed that its online sales grew a massive 221% while its stores were closed because of the pandemic. Judging by the investment, it appears as though this director is confident its strong form can continue.

Medibank Private Ltd (ASX: MPL)

A change of director’s interest notice reveals that one of this private health insurer’s independent non-executive directors has made a sizeable purchase of shares in May. According to the notice, Tracey Batten picked up 15,715 shares through an on-market trade on 14 May. Batten paid an average of $2.85 per share, which is slightly higher than today’s price. This works out to be a total consideration of just under $45,000 and lifts the director’s holding to a total of 50,000 shares.

This purchase price represents a 22.5% discount to Medibank’s 52-week high. Which appears to be a level this director thinks is good value. One broker that might agree is Credit Suisse. Earlier this month it put an outperform rating and $3.00 price target on the company’s shares.

More reading

• 3 ASX retail shares to own for the next 20 years
• 3 industries that may never recover from COVID-19
• ASX small-cap sector rallies strongly during April
• Revealed: 5 dividend shares for reliable income
• 3 ASX healthcare shares to buy now for the long term

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

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ASX telecommunications company MNF Group Ltd (ASX: MNF) develops the software that facilitates many of the services we’re all using a lot more of these days. The company specialises in Voice over Internet Protocol (VoIP) technology, which is a way to convert analogue audio into digital data that can be transmitted over the internet. This tech is used to support services like teleconferencing, online business meetings and digital data transfers.

With large swathes of the global workforce now advised to work from home as much as possible, demand for these services is rapidly increasing. And while the future is incredibly uncertain right now, there is the possibility that the coronavirus pandemic could permanently change the way many industries think about how they deploy their workforce.

Despite falling to a new 52-week low of $2.77 back in March, the MNF share price has now recovered just about all of its coronavirus losses. As at the time of writing, MNF shares are valued at $5.14, within touching distance of the 52-week high of $5.48 it reached in September 2019.

The swift turnaround came as a result of the company reaffirming its FY20 earnings guidance, even in the midst of the panic selling that swept through global markets in March. It forecast FY20 EBITDA in the range of $36 million to $39 million, which would represent an uplift of at least 32% over FY19.

In a further trading update released to the market towards the end of April, MNF stated that it was experiencing higher demand across most of its business segments as many companies and schools continued stay-at-home arrangements.

Why I would invest

There are a few niche companies that have experienced rapid increases in demand during the coronavirus pandemic. Meal kit delivery service Marley Spoon AG (ASX: MMM) has seen its share price skyrocket, as have online retailer Kogan.com Ltd (ASX:KGN) and data centre operator NextDC Ltd (ASX: NXT).

But the important thing to consider is whether the current rise in demand that these companies are all experiencing will be permanent or not. Companies like Marley Spoon have seen increased market penetration during this time as people are unable to eat out at restaurants and limit trips to the supermarket. Similarly, Kogan has seen a rapid surge in people ordering items online due to the temporary closure of many retailers.

But will these patterns of consumer behaviour outlast the pandemic? For example, as restaurants open up again and people are no longer confined as stringently to their homes, demand for Marley Spoon may drop off.

However, I believe the coronavirus crisis could have lasting impacts on the way many people choose to work. The path back to full capacity in many office buildings will be a long, slow journey, and I think that many people may choose to continue to work remotely. Similarly, large corporations may realise they can save on property costs by continuing to have large percentages of their workforce telecommuting.

I believe companies like MNF Group and NextDC may be the ones most likely to see a permanent uplift in demand in a post-coronavirus economy.

More reading

• 3 ASX retail shares to own for the next 20 years
• Why I’d invest $1,000 in this ASX tech share today
• $2,500 invested in these 3 ASX shares could make you a fortune in 10 years
• Where I would invest $5,000 into ASX shares immediately
• These ASX tech shares could be destined for big things thanks to cloud computing

Rhys Brock owns shares of Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of MNF Group Limited. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended MNF Group 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.

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