Although the last few months have been relatively good for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO), not all shares on the Australian index have fared so well.
Three shares have been beaten down to such a degree in recent months that I believe they now appear to be absolute bargain buys. They are as follows:
Appen Ltd (ASX: APX)
Appen is a global leader in speech and search technology services. In the last three months its share price has fallen 24%. As its shares had more than doubled in value prior to the sell off, I believe the drop can be attributable to profit taking. As a result its shares can now be picked up for 22x estimated FY 2017 earnings according to CommSec. Considering its strong growth prospects and debt-free balance sheet, I believe Appen would make a great long-term buy and hold investment.
BWX Ltd (ASX: BWX)
After another sharp drop today this skincare company has seen its share price plunge around 20% in the last two months. Today's decline is likely to be the result of concerns over exports to China suffering following the shock update from Bellamy's Australia Ltd (ASX: BAL) this morning. I think this is an opportunity for investors to buy in at a great price. After all, it's not all about China for BWX. The Sukin brand has just launched in the UK market through Boots pharmacies.
Mantra Group Ltd (ASX: MTR)
In the last six months Mantra's shares have fallen 18%, extending their year-to-date decline to a whopping 37%. As one of Australia's leading accommodation providers with 20,000 rooms under management, I believe the predicted inbound tourism boom puts Mantra in a strong position for long-term earnings growth. With its shares changing hands at 17x estimated FY 2017's earnings and expected to provide a fully franked 4.4% dividend, now could be an opportune time to invest.
