With the S&P/ASX 200 (ASX: XJO) down just shy of 7%, here are three ASX shares I’m looking to pick up in February.
1. Tabcorp Holdings Limited (ASX: TAH)
At first glance buying shares in your local TAB outlet doesn’t look like the most exciting investment.
But Tabcorp plans to undergo a huge demerger that will split the company in two by June this year.
Watchlist Wednesday: Tabcorp Holdings Limited (ASX: TAH)
One company will house the wagering division, including its TAB and KENO outlets and betting platforms.
The other will be home to the lotteries division, which includes the TattsLotto, Powerball, Oz Lotto brands.
Lotteries is one of the highest quality businesses on the ASX, with reliable cash flows and zero competition.
It’s difficult to see the quality of Lotteries when it’s integrated among other divisions.
But once split out, the market will be able to assess the division on its merits.
2. NEXTDC Ltd (ASX: NXT)
The broader tech sell-off, which has the ASX technology index down 17% year-to-date, is offering a great entry point for several ASX tech shares.
One of them is data centre developer and operator NEXTDC. Currently, its share price is on sale for 20% off.
The business recently announced it had increased its contracted capacity by 7% over the past seven months.
NEXTDC doesn’t pay a dividend and is reliant on the market to fund its expansion.
But with the demand for data only expected to increase over time, NEXTDC is a company I’m looking to pick up and hold for decades.
3. Uniti Group Ltd (ASX: UWL)
Uniti Group brings the best of the two previously discussed ASX shares.
Similar to NEXTDC, Uniti is an infrastructure play.
The business builds fibre to new dwellings such as property estates or apartment buildings.
It then charges retail service providers such as Telstra and Optus access fees to connect to households.
Like Tabcorp’s lotteries division, it has reliable cashflows and zero competition.
A competitor isn’t going to pop up and build another fibre line directly next to Uniti’s as it would be costly and uneconomical.
Recently, the business paused its share buyback after it announced it was in discussions with potential acquirers.
This could provide a short-term catalyst for the Uniti share price and makes it an ASX share I’m looking to add to.
If you’re looking for more share ideas, check out 22 ASX shares I’m excited about it 2022.
