A2M and APX are Undervalued Stocks in ASX - Buying Opportunity Now?

Two strong fundamental stocks are currently under value in ASX and I think it is good buying opportunity now before they go up.

This is to document what I have done and my plan on these stocks, not to explain in the details why. :)

A2M (The A2M Company Limited)

It has been dropped >40% from $20 due to the 2 downgrades consecutively. The lowest price is at $9.82 and currently is trading at $11.45 which has been up >15% from the lowest point. I'm waiting for the pull back to buy in. Currently my aim is at $10.50. The intrinsic value is around $14 (based on my calculation) which is now trading at 20% discount. 

I already have 2 positions. First is at $15.4 and second is at $14. First position was a mistake. I learned that we should wait for the bad news to settle down (takes 2 - 3 days) before we enter. However, it didn't work on the latest dip at $9.82 which it doesn't really settle down but rally up instead on the next day. I guess we really can't predict the stock? My second position was just merely to average down my buying price which I didn't manage to buy at the $13 support level (which I"m okay). Up to today, it is -20% capital lost.

APX (Appen Limited)

Similar to A2M, it has been dropped >40%, which is trading at 40% discount based my intrinsic value calculation.

I only have one position in stock which is at $25, around -2% capital lost from the current price. It looks like it is gong to be consolidate between $24 and $25. Whether there is a next downgrade, I think we need to wait for the next earning release on 24 Feb 2021. My plan is wait for $24 support level confirmation and buy at this level. 

The risk is really further downgrade from these 2 companies (which is possible). In that case, I will average down my positions. This based on the assumption these 2 companies are still strong in fundamental and business model. For A2M, I really wish there is a pull back. If not, I will probably missed the big discount opportunity. :) 

Happy investing and this is not financial advice.