There are a number of ASX shares that are absurdly cheap right now because of the coronavirus.
These shares are certainly higher-risk than some ASX shares out there because of their size or industry. But the prices give some margin of safety.
Here are three ASX shares that could be really cheap:
Duxton Water Ltd (ASX: D2O)
This is a business that purely owns water entitlements and leases them out to agricultural players.
Every month it releases a monthly net asset value (NAV) update to tell the market what its shares are fundamentally worth.
In the latest March monthly update Duxton Water said that its NAV was $1.68. That is a 24% discount to the share price. If you take out the provision for unrealised capital gains taxes if the entire portfolio were sold, the NAV was $1.91. That's a 33% discount.
It's steadily increasing its dividend. Whilst there has been a bit more rain recently, the water system is still down on where most stakeholders would like it to be. The Duxton Water share price is down 19% since the coronavirus share market falls started.
Webjet Limited (ASX: WEB)
The Webjet share price has obviously been hit very hard. It's down 74% since 21 February 2020. Travel has gone off a cliff. It could be a very long time before international travel returns to somewhat normality.
But some countries are starting to lower their restrictions. There is talk of travel opening up between Australia and New Zealand. Domestic travel will start recovering sooner than international tourism. Webjet will hopefully benefit from these themes.
Whilst 2020 is going to be a very rough period for the business, its model of being an online-only operator means it has a lower cost base and can more easily return to normal, particular if customers don't want to go into a physical travel agent store yet.
There could be a time this year of a shift in sentiment that will see an upswing of the Webjet share price, but that may not be any time soon.
Bapcor Ltd (ASX: BAP)
The auto parts business has seen its share price fall heavily over the past couple of months, it's down 28% from 21 February 2020.
Investor confidence has fallen as a whole. But there's obviously going to be less people replacing car parts whilst they're in lockdown.
But car traffic will start returning as restrictions ease, which should also mean a return to car parts needing replacing.
Its balance sheet is well capitalised after a capital raising. In the HY20 result, in normal conditions, Bapcor grew its revenue by 10.4% and its pro forma net profit by 5.1%.
Foolish takeaway
I think both Bapcor and Webjet could be strong performers over the next two to three years as life returns to normal. Duxton Water is a very interesting diversification option and it's trading with a good margin of safety, even if water prices reduce a bit this year.
