Has Omicron created the biggest buying opportunity for cheap UK shares?

The stock market is tumbling due to Omicron. But has this made to the search to buy cheap UK shares easier?

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Finding cheap UK shares is often top of an investor’s priority list. After all, buying a business at a discount is a proven strategy of generating enormous wealth – just look at billionaire investor Warren Buffett. Uncovering these opportunities can be a long and arduous process.

However, since last Friday, the market has been in a bit of a downward spiral, potentially making things a lot easier.

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After discovering a new strain of Covid-19 emerging from southern Africa, fears of another Christmas lockdown are on the rise. Apart from being frustrating for families eager to celebrate the holidays, the re-introduction of restrictions could be very disruptive to businesses.

2020 serves as a perfect example of the worst-case scenario if the Omicron variant proves to be as nasty as some people are currently speculating. So I’m not surprised to see some investors selling off their positions to try and mitigate potential losses. But has this market adjustment caused some UK shares to be too cheap? Let’s explore.

The power of rising uncertainty

Despite what the sharp drop in share prices would indicate, there’s little known information about the new variant. Having only been recently discovered, scientists are still trying to work out whether this is something to worry about.

As it stands, knowledge surrounding its transmissibility, symptom severity, and the effectiveness of vaccines are unknowns. And it’s possible that this variant, like several others before it, could simply fade away within a few months. Of course, the opposite could also be true, and it may be the worst strain yet.

Uncertainty and the stock market don’t exactly get along. And with some investors fearing the worst, volatility is on the rise as they rush to the exit gates. But as unpleasant as it is to see my portfolio move in the wrong direction, the panic may have created some substantial buying opportunities. Why? Because many UK shares caught in the selling crossfire are now looking rather cheap.

Finding the best cheap UK shares

Simply throwing my money at the businesses that suffered the largest drops these past few days is not a prudent strategy, in my opinion. After all, some of the biggest fallers are travel stocks. And most have a pretty unhealthy balance sheet after using debt to stay afloat during 2020. Not to mention that if Omicron turns out to be a disaster, the sector is likely to get pummelled.

Instead, I’m searching for cheap UK shares that may actually profit from another round of lockdowns, but can still thrive in a post-pandemic world. And one that might fit this description is Learning Technologies Group (LSE:LTG).

This tech stock hasn’t had the best run in the last six months. And the past few days have only continued this downward decline. But despite what the falling share price would indicate, the business could generate some explosive long-term growth.

LTG provides a remote learning platform for employees to complete training for almost any profession from the comfort of their homes. In a post-pandemic world, it’s possible that the demand for such solutions could fade away. However, given the cost-saving benefits for employers and the convenience factor for employees, I don’t think that will be the case.

But there's also another UK share that looks too cheap in my mind...

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Zaven Boyrazian owns shares of Learning Technologies. The Motley Fool UK has recommended Learning Technologies. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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