The ASX share market is currently going through a correction as fears intensify about COVID-19 spreading in Europe and the UK again. There's also the US election on the horizon.
The best time to buy shares is when share prices are lower rather than higher. The phrase is 'buy low, sell high' not 'buy high, sell low'.
I think it's an opportunity to buy ASX shares when most of the market sells off. I think the below businesses are opportunities with share prices going lower:
City Chic Collective Ltd (ASX: CCX)
City Chic is one of the most promising ASX shares in my opinion. At the time of writing the City Chic share price has fallen 2.7% today and it's down 10% over the past week.
Part of the decline is due to the fact that it was unsuccessful at acquiring Catherines. It has raised capital but doesn't have any immediate places to invest it.
However, I think the ASX share has plenty of growth potential. The retailer of plus-size clothing, footwear and accessories for women generates a lot of its earnings in the northern hemisphere. Perhaps its earnings will be disrupted again by lockdowns in the UK, however thankfully it sells a large proportion of its items online. In FY20, around 65% of its sales were made online. I think this shows the company is well placed with whatever happens next with COVID-19, whether things get better or worse in its key markets.
The loss in the Catherines auction was disappointing. But I think it's very pleasing to see that the ASX share isn't chasing acquisitions just for the sake of it at any price. City Chic expects that there will be other opportunities to add brands and take market share more aggressively. It's just a temporary setback.
At the current City Chic share price it's trading at 21x FY21's estimated earnings.
BWX Ltd (ASX: BWX)
BWX is a leading natural beauty business. The BWX share price is down 3.6% at the time of writing.
I believe that BWX has really turned the corner after a difficult 2018. In FY20 it grew revenue by 26% and statutory net profit rose 59% to $15.2 million. The gross profit margin increased to 58%.
A lower BWX share price is attractive to me because it is growing its international earnings rapidly. Sukin is expanding in North America and Europe is a particularly attractive idea.
The ASX share has improved its balance sheet position and in FY21 it's expecting earnings before interest, tax, depreciation and amortisation (EBITDA) growth of at least 10%.
There is growing demand for natural beauty products, I think BWX is well placed to benefit from this.
At the current BWX share price it's priced at 28x FY22's estimated earnings.
EML Payments Ltd (ASX: EML)
The EML share price is down 2% right now and it has fallen 20% since the end of August 2020 and it's down 35% from 10 June 2020.
It provides gift cards and other similar products. There are general purpose reloadable cards, gift and incentive cards and virtual card account numbers.
You'd think that the mass closure of retail stores would be fairly bad news for EML's physical gift cards segment, but its other divisions could make up for that.
In FY20 it saw group revenue rise 25% to $121.6 million and underlying EBITDA grew 10% to $32.5 million.
The PFS acquisition was a really smart move and getting it for a cheaper price was a wise move.
I think the ASX share is more resilient than some investors think and over the long-term I think it has attractive growth prospects, particularly once COVID-19 fades into history (hopefully sooner rather than later).
Foolish takeaway
I think all three of these ASX shares could be worth buying during this ASX share market downturn. They have good growth prospects and lower share prices are attractive when it's a selldown of the whole market.
