I just bought 2 ASX shares everyone else is selling: expert

Tribeca’s Jun Bei Liu reveals a couple of stocks that are historically cheap that will bounce back in the long term.

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A man wearing glasses sits back in his desk chair with his hands behind his head staring smiling at his computer screens as the ASX share prices keep rising

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Regular readers will already know that the best time to buy ASX shares is when prices have come down.

It’s no different to picking up a bargain pair of trousers. Why would you pay $200 for those jeans when there are other times when they’re on sale for $100?

According to Tribeca Investment portfolio manager Jun Bei Liu, right now the market is “fantastic for disciplined investors” and those with a long-term horizon.

“Recently we saw a couple of quality company share prices fall a lot,” Liu told Switzer TV Investing.

“So what do we do? We take advantage of those opportunities.”

Here are the 2 ASX shares that the market has hammered recently that Liu’s team picked up:

Don’t worry about when the bounce back will come

Only 16 months ago, A2 Milk Company Ltd (ASX: A2M) shares were flying high, almost scraping $20. Now they’re languishing in the low $6s.

Liu said the dairy company’s investors have been to “hell and back”.

“Things were looking pretty tough because of the destocking in China and these other issues, like closed borders.”

But her team felt from the most recent update that the business has stabilised.

“The English label has been selling actually pretty good,” Liu said.

“We’re seeing the share price reflect the bottom… the worst conditions you can expect. It’s only going to get better from here.”

The Tribeca analysts are confident the disruptions are short term, and like the look of A2 Milk’s balance sheet.

Liu’s team has just started buying A2 shares at the current low prices.

“We think it would deliver a very good return… Nothing’s really changed about this company over the long run,” she said.

“Don’t need to worry about when the share price will bounce back. Because it will.”

Bargain ASX shares after ‘an overreaction’

New Zealand accounting software provider Xero Limited (ASX: XRO) has rewarded its investors handsomely over its 9-year life on the ASX.

But this year it has remained flat, with the share price down 1.93%.

Liu feels like the market punished it after the latest results underwhelmed on revenue, even though profit was positive.

“Backward looking… COVID-19 has had an impact on this business,” she said.

“But going forward, things are actually looking very very strong. Pipeline is strong… The share price was down 7% on the day — clearly it was an overreaction.”

The Tribeca team then happily bought up discounted Xero shares.

“The story is still intact,” said Liu.

“Still a quality company — growth is still to come.”

Wondering where you should invest $1,000 right now?

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Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor Tony Yoo owns shares of A2 Milk and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Xero. The Motley Fool Australia owns shares of and has recommended Xero. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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