2 FTSE companies I’m itching to buy if we get a full-blown stock market crash

Harvey Jones hates to waste a stock market crash and if today’s sell-off continues, he plans to buy these two fast-falling FTSE 100 stocks.

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My portfolio’s currently hurting, but today’s sell-off doesn’t meet the definition of a stock market crash. The FTSE 100’s ‘only’ down 2.43%. At least so far.

It could still meet the definition of a crash by falling 10% in total as volatility sweeps global markets. That will hurt even more, but I won’t panic. Instead, I’ll treat this as a buying opportunity. 

Right now, three longstanding targets are at the top of my Buy list, namely equipment rental specialist Ashtead Group, oil giant BP, and private equity specialist Intermediate Capital Group.

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Yet I can see buying opportunities everywhere I look, and I’d love to snap up these two as well, once I scrape enough cash together.

Fund manager Schroders

Family-controlled fund manager Schroders (LSE: SDR) was always going to take a beating today (5 August). To my surprise, it’s only dropped a relatively modest 4.35%. A dozen FTSE 100 stocks have been hit harder. Of course, that may be because it swallowed its medicine last week.

Schroders’ share price plunged on 1 August after posting a 7.7% drop in half-year operating profits to £315m. That was partly due to a £17.8m reduction in performance fees and net carried interest.

Yet there was good news in there too, with assets under management jumping 6.55% to a record £773.7bn. Its fund managers were performing significantly better too.

Schroders’ a long-term underperformer. Its shares are down 22.65% over one year and a brutal 45.03% over three. However, this leaves the shares looking great value at 14.02 times trailing earnings, while driving the yield to a bumper 6.48%.

Created with Highcharts 11.4.3Schroders Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

I view this as an opportunity to buy Schroders at an even lower price with the aim of generating both income and growth when it recovers. However, I suspect we’re likely to see a fair bit of volatility first.

Scottish Mortgage Investment Trust

The Scottish Mortgage Investment Trust’s taking a notably bigger beating, down 6.76% today. Given its focus on the riskier end of the investment spectrum, notably tech stocks and smaller unquoted companies, it’s always vulnerable on days like these.

Before recent events, lead fund manager Tom Slater was making a decent fist of replacing retired star manager James Anderson. The Scottish Mortgage share price is still up 15.48% over one year. I’d love to take advantage of the recent pullback to buy more, but I’m under no illusions.

Created with Highcharts 11.4.3Scottish Mortgage Investment Trust Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

There will be plenty of bumps along the way. Especially given that US-listed chipmaker Nvidia’s its biggest holding, worth almost 10% of the entire portfolio. I’m surprised the trust hasn’t done better to be honest, given its outsize stake in the number one AI play. Now Nvidia’s on the frontline of the current crash.

I suspect both Schroders and Scottish Mortgage have got a fair bit further to fall as the panic extends. However, markets could snap back if the US Federal Reserve speeds up interest rate cuts. These two might then lead the table of FTSE 100 risers instead.

I’ll be watching the market like a hawk, and swoop when I reckon the worst is over. Then I’ll hold for the long, long term, no matter how many stock market crashes we go through. History shows that shares always recover in the end.

Pound coins for sale — 31 pence?

This seems ridiculous, but we almost never see shares looking this cheap. Yet this Share Advisor pick has a price/book ratio of 0.31. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 31p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 10%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Harvey Jones has positions in Scottish Mortgage Investment Trust Plc. The Motley Fool UK has recommended Nvidia and Schroders Plc. 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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