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Despite some volatility, ASX shares are still trading at record highs.
So, is everything too expensive to buy now? Are there any cheapies left that are actually decent businesses?
Burman Invest chief investment officer Julia Lee certainly thinks so. This week, she selected 3 ASX stocks that aroused her interest:
Even cloud computing has to live somewhere
Cloud computing has become all the rage over the past decade, but the masses forced to work from home have given it an extra boost last year.
But even the ethereal cloud needs a physical location to exist. So a data center provider like NextDC Ltd (ASX: NXT) will continue to see strong demand, according to Lee.
“I think NextDC looks pretty attractive at these prices,” she said. Swiss TV investment.
“What we’ve seen in data storage is that the supply has increased. But I think that’s because we’ve seen demand increase as well.
Lee believes that the next financial results will show that NextDC has seen a sharp increase in its business due to the COVID-19 pandemic, accelerating the migration to the cloud.
“Megaport Ltd (ASX: MP1) is doing pretty well… NextDC has a bit of catching up to do and I’ll put a valuation of around $ 14 to $ 15 [per share]. “
NextDC shares are trading at $ 12.04 Wednesday afternoon, which is up 1.6% on the day.
People will end up stealing somewhere
Qantas Airways Limited (ASX: QAN) is currently a value-added ASX stock for Lee.
“At these prices, if you are looking at 2023, it’s a bit of a no-brainer. “
While great uncertainty still hangs over Qantas’ international operations, its lucrative domestic businesses are already turning into gangbusters.
“If we look at fiscal year 2022, it predicts that Jetstar’s capacity will reach 122% of pre-COVID-19 levels and Qantas to 107%,” she said.
“When things open up again, we’ll probably see everyone rushing to try and travel, so we’ll actually see demand increase quite sharply initially.”
Qantas’ stock price fell 1.02% on Wednesday afternoon, trading at $ 4.86. It was in the $ 6 and $ 7 range early last year.
A great sale promises a bright future
Logistics and infrastructure provider Qube Holdings Ltd (ASX: QUB) on Monday sold its Moorebank facility in western Sydney for $ 1.7 billion.
Lee believes that this is an excellent decision for the holders of this ASX stock.
“I think it’s a great price. That’s a price that works out to $ 1.36 per share plus about 32 cents in deferred payment.
The types of cargo that Qube helps transport are all in high demand, which means more business for the logistics provider.
“Consumer spending is pretty strong right now. Not only that, the commodity prices are high … If you look at the commodities – like grains and grains – not only is the outlook good, but the prices are quite high right now.
Qube shares climbed to $ 3.20 on Monday morning after the asset sale was announced. They are now at $ 3.05 on Wednesday afternoon, currently down 0.65% for the day so far.