The S&P/ASX 200 Index (ASX: XJO) has entered a bear market in March and ASX 200 shares have been smashed. While the coronavirus pandemic has hurt shareholders, it has also created buying opportunities in the market.
Here are 3 Aussie companies that could be in the bargain bin in April.
Star Entertainment Group Ltd (ASX: SGR)
The Star Entertainment share price has slumped 56.52% lower this year and is trading at just $2.00 per share. Star Entertainment is one of the largest gaming and entertainment groups in the country after being spun-off from Tabcorp in June 2011. The ASX 200 wagering group’s shares have been hammered lower after laying off 90% of its workforce as its casino operations close down temporarily.
The Aussie wagering group could be in the bargain bin after falling more than 50% in the space of a few weeks. While casino shutdowns will hurt Star Entertainment’s earnings, I think the long-term value is still there. ASX 200 shares aren’t valued based on this year’s earnings, but their long-term potential.
Super Retail Group Ltd (ASX: SUL)
Super Retail shares have plummeted 59.39% since the start of the year to $4.11 per share. ASX 200 retail shares have been hit hard by the economic shutdown triggered by the pandemic. That includes Super Retail, which owns and operates iconic Aussie brands like Rebel Sport, Supercheap Auto, Macpac and BCF.
As Aussie retailers shut their doors, Super Retail’s earnings could take a hit. However, much like Star Entertainment, I think the long-term looks OK. The pandemic will pass and online retailing could boom in the meantime. While Aussies might tighten their spending in recessionary conditions, I think the ASX 200 retailer’s share price fall may have overshot the mark.
Santos Ltd (ASX: STO)
Santos shares are down 58.31% in 2020 and 50.08% since the start of March. Unlike the retailing and wagering sectors, ASX 200 energy shares have been hammered by the oil price war.
The Saudi-led Organization of Petroleum Export Countries and Russia have been at odds over how to handle the coronavirus pandemic. This has led to oil producers flooding the market and the increased supply sent oil prices plummeting.
However, the ASX 200 oil and gas producer could be a good value buy right now. Santos currently has a market cap of $4.09 billion and I think it’s in a good position to recover after announcing a raft of financial measures. There’s no doubt there are tough times ahead, but significant liquidity and prudent action could be enough to pull it through.
If that’s the case, Santos shares could be an absolute bargain right now, despite the higher risk.
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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail 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.