If I were lucky enough to receive $10,000 to invest into ASX shares, I know where I’d want to put that money to work.
There are lots of opportunities out there in my opinion, but an investor needs to actually take advantage of them to benefit.
I think these three ASX shares look good:
MFF Capital Investments Ltd (ASX: MFF)
MFF Capital is one of my favourite listed investment companies (LICs). For me as an Aussie investor, it ticks lots the boxes that I’d want – low costs, diversification away from ASX shares – it usually invests in global blue chips, good performance and good value.
At 24 September 2021, some of its largest positions included: Visa, Mastercard, Amazon, Home Depot, Facebook, Alphabet, Microsoft, CVS Health, Bank of America and Flutter Entertainment.
I really rate Chris Mackay, the manager of MFF Capital.
The MFF share price is currently at a 13% discount to the pre-tax weekly net tangible assets (NTA) of $3.358 at 8 October 2021.
Redbubble Ltd (ASX: RBL)
Redbubble is one of the leading e-commerce ASX shares around, in my opinion.
It sells a wide range of cool products that have independent artist designs on them. The artist gets paid for the products sold with their design on them.
After delivering its FY22 first quarter update, the Redbubble share price has fallen more than 10%. But I think this provides a nice opportunity to get into Redbubble at a lower price.
Management said that the quarter was approximately what was expected and it’s on course to deliver the growth that it’s aiming to over the longer-term.
I like Redbubble for the huge e-commerce opportunity and the very scalable nature of being a global online platform.
Adairs Ltd (ASX: ADH)
The Adairs share price has fallen by around 20% since the middle of June 2021.
Home furnishings and homewares doesn’t sound like the strongest area to be in. But we all need bedsheets and so on. And COVID may have increased people’s willingness to spend on their homes.
But the trend of spending on homes is not one of the key reasons why I like Adairs.
I think the ASX share has good profit growth potential over the longer-term, after FY22 (as it will be hard to beat FY21’s profit). Adairs is planning to grow its total retail floor space in the coming years (enlarging stores and opening in new locations), which it expects will lead to a somewhat similar rise in sales.
The business is also opening a new national distribution centre. This will save $3.5 million of costs each year and make it more efficient, as well as being able to handle much higher levels of online orders. Sales growth and rising profit margins are an attractive potential combination.
The other two reasons I like it are for the valuation and dividend yield. Retailers are typically valued at a lower multiple of their profit, but it seems attractive for the potential profit growth. Commsec puts it at 10 times the 2023 financial year’s estimated earnings. It is also expected to pay a dividend yield of 9.6% including the franking credits.
