I think there are always ASX share opportunities on the ASX to buy. You just need to buy the right ones at the right price.
It's a good idea to decide which shares you may want to buy in the form of a watchlist. Then you could jump on opportunities whenever they pop up.
I think the below four ASX shares are long-term opportunities and I'd be very happy to buy for my portfolio right now:
Citadel Group Ltd (ASX: CGL) – $3,000
Citadel is a leading ASX tech share that provides software to help organisations manage data in sectors like defence, education and healthcare.
The company recently reported its FY20 result which had a lot going on, partly due to the acquisition of Wellbeing. I really like the transformational acquisition. It's a UK software provider for the healthcare industry.
Compared to the core Citadel business, Wellbeing has higher recurring revenue and it also has a higher earnings before interest, tax, depreciation and amortisation (EBITDA) margin. It improved quality of the overall Citadel business.
In FY20 Citadel's underlying EBITDA grew by 25.3%. I think FY21 and beyond looks very promising for Citadel.
At the current Citadel share price, it's trading at around 13x FY22's estimated earnings.
Pushpay Holdings Ltd (ASX: PPH) – $3,500
Pushpay is another exciting ASX share in my opinion.
It's an electronic donation business which helps its clients facilitate digital giving. Its largest customer base is the US large and medium church sector. There is a huge amount of money donated to US churches each year. Pushpay is aiming for US$1 billion of revenue over the long-term.
The company could become a lot larger partly as a result of its growing profit margins. In FY20 alone Pushpay's gross margin improved from 60% to 65%. That's a big increase in one year. It indicates that the business can become more profitable again in FY21, FY22 and beyond.
At the current Pushpay share price it's trading at 35x FY22's estimated earnings.
Magellan High Conviction Trust (ASX: MHH) – $1,500
This is a listed investment trust (LIT) which invests in other businesses on your behalf.
The ASX share is managed by Magellan Financial Group Ltd (ASX: MFG), the portfolio is full of Magellan's best (growth) ideas.
What names make it into a portfolio of (approximately) just 10 names? Some of its biggest holdings include Alibaba, Alphabet, Microsoft, Tencent and Facebook. These are quality global businesses with resilient operating models for the current COVID-19 environment.
At the current Magellan High Conviction Trust it's trading a 5% discount to the current indicative net asset value (NAV).
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) – $2,000
Soul Patts is a great investment conglomerate in my opinion. It has been around for over a century and I think the current uncertain environment is a good one for the business to excel in.
It owns a number of defensive businesses like telecommunications, property, swimming schools and agriculture. These industries should be able to perform well even during a recession.
The ASX share is regularly adding to its portfolio of investments. There are plans to invest in regional data centres, which is a good growth industry at the moment with the shift to cloud infrastructure.
Not only is Soul Patts a solid growing business, but it also has a great dividend history. It has increased its dividend every year for 20 years in a row.
At the current Soul Patts share price it offers a grossed-up dividend yield of 4.2%.
Foolish takeaway
I really like each of these ASX shares. I think that Citadel and Pushpay have very exciting futures which is why I'd be willing to invest more in both of them. However, I like the long-term returns and diversification offered by Soul Patts and Magellan High Conviction Trust.
