If I had $1,000 to invest right now I would definitely want to put it into ASX shares.
The coronavirus has created some opportunities for investors to buy shares at a cheaper price. It’s terrible that hundreds of people have died and many thousands have been infected, however the share market is rising today because the virus’ growth doesn’t seem to have accelerated over the past 24 hours.
Depending on whether I was looking for a growth share or a dividend share, I’d think about these two options:
Growth share idea – Webjet Limited (ASX: WEB)
Webjet has seen its share price fall fell by around 15% since 24 January 2020 because of global travel worries. However, that movement includes the rise today as investors become more positive about the coronavirus outlook.
It’s certainly true that travel between China and other countries has been limited, but flights around the rest of the world continue and hotels continue to be booked.
Webjet has very promising growth prospects with its WebBeds business, its B2B division, over the coming years. Even if FY20 is disappointing, particularly with Thomas Cook’s demise, FY21 and beyond looks very promising for Webjet.
Indeed, before the coronavirus outbreak there was talk of a takeover with several interested parties who were thinking about bidding.
I think today’s lower price could be an opportunity to buy Webjet shares at just 14x FY21’s estimated earnings.
Dividend share idea – PM Capital Global Opportunities Fund Ltd (ASX: PGF)
Global share valuations have definitely been affected by worries about the coronavirus, which has affected this listed investment company (LIC).
Some of PM Capital Global Opportunities’ holdings are more likely to be affected like MGM China Holdings and Freeport-McMoRan Copper in the shorter-term, but I think this provides us with an opportunity to buy PM Capital Global Opportunities at a cheaper price.
Why do I think PM Capital Global Opportunities is a good dividend share? It has performed well over the past few years, it has a diversified portfolio, it has grown its dividend each year since 2016 and it currently has a forward grossed-up dividend yield of 4.6%.
It’s currently trading at a 14% discount to the net tangible assets (NTA) per share at 31 January 2020.
I think both of these shares are very attractively priced because of worries about the coronavirus, which will hopefully just be a relatively short-term issue for China.
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Motley Fool contributor Tristan Harrison owns shares of PM Capital Global Opportunities Fund Ltd. The Motley Fool Australia has recommended Webjet Ltd. 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.