The oil markets have been causing quite a stir this week.
Demand for oil has evaporated so much that the WTI crude oil price turned negative for the first time in history. This essentially meant that sellers were paying buyers to take it off their hands.
Unsurprisingly, this development has hit investor sentiment hard and led to indiscriminate selling once again.
While it is difficult to say when the volatility will subside, it is worth remembering that it will soon pass.
As a result, I think now could be an opportune time to look at the shares you want to buy that have been caught up in the selloff.
Three shares that I would buy are listed below:
Appen Ltd (ASX: APX)
In morning trade the Appen share price was down 4% to $22.17. This means its shares were down 31% from their 52-week high of $32.00. I think this is a buying opportunity for investors. Especially given how the developer of high-quality, human-annotated training data for machine learning and artificial intelligence recently reiterated its guidance for FY 2020 despite the pandemic. Appen expects to achieve underlying EBITDA in the range $125 million to $130 million, which represents a 23.8% to 28.7% increase on FY 2019's underlying EBITDA of $101 million.
REA Group Limited (ASX: REA)
This property listings company's shares are down 3% to $78.11 on Wednesday. This leaves them trading a long way from their 52-week high of $117.30. While the market is right to be concerned about the near term impact on its listings volumes because of the COVID-19 pandemic, I believe this is short sighted. REA Group is an exceptional business with a dominant position in the Australia market and growing operations internationally. Once the crisis passes, I expect its listings and its profits to rebound. This could make it worth taking advantage of its share price weakness and investing with a long term view.
SEEK Limited (ASX: SEK)
This job listings company's shares were down to $15.54 today, which means they were 35% lower than their 52-week high of $24.09. I think this leaves SEEK's shares trading at a very attractive level for a long term investment. Although the immediate term will be difficult because of the pandemic, I expect SEEK to bounce back strongly when it passes. Combined with its growing international operations, I feel SEEK is well-placed to grow its earnings at a solid rate over the next decade when conditions return to normal.
