Almost halfway through the 2022 year, I think there are some great ASX share opportunities to jump on.
I’m looking at businesses that have previously demonstrated good long-term track records, but have now fallen in value in recent months.
I think there are plenty of ASX tech shares that look good value, and I’ll look at those in a later article. However, I think these two are leading opportunities:
MFF Capital Investments Ltd (ASX: MFF)
MFF Capital is one of the most effective listed investment companies (LICs), in my opinion. It has a reasonably low cost base, which is helpful for net returns.
Chris Mackay manages the LIC, its purpose is to invest in shares around the world. That gives it great flexibility to find quality, long-term investments, in my opinion.
At the moment, some of the ASX share’s biggest weightings are to names like Visa, MasterCard, Amazon, Home Depot, Alphabet, Microsoft, Bank of America, Meta Platforms, CVS Health, American Express and CK Hutchison.
At the end of May 2022, its underlying value (the net tangible assets (NTA)) was $2.94. The MFF Capital share price is currently at a 16% discount to this. In my opinion, that’s a good discount for exposure to great businesses and a growing dividend.
Brickworks Limited (ASX: BKW)
With the current Brickworks share price down 20% in the year, to below $20, I think it looks like great value.
It has high-quality divisions relating to building products in Australia (and the US). Brickmaking and roofing are two areas where it has strong market positions.
However, I think that Brickworks’ future is particularly attractive because of its exposure to industrial property.
The ASX share owns 50% of an industrial property joint venture with Goodman Group (ASX: GMG). There is an enormous amount of construction happening within the trust, which, when completed, should lead to a very pleasing lift in rental income and valuation when completed. At the end of FY22, Brickworks’ 50% share was worth $1.26 billion.
The gross assets of the trust are worth $3 billion at the moment and could be $5.4 billion in five to six years as projects are completed. It could also lead to an almost doubling of gross rent as well. There are further land plots to develop beyond that five to six-year period.
Brickworks also notes that it could include building properties in an operational property trust, which could unlock hundreds of millions of dollars of value for Brickworks. Some of those properties have the potential to be developed into industrial properties in the future.
The ASX share also has a consistent and growing dividend, which I also like.
