MENU

These 3 ASX shares have fallen to 52-week lows: Are they bargain buys?

Following on from my earlier piece about how MMJ Phytotech Ltd (ASX: MMJ) and three other shares had just hit 52-week highs, I thought I would take a look at three unfortunate shares that have just made new 52-week lows.

Are they bargain buys or best avoided?

The RCG Corporation Ltd (ASX: RCG) share price has tumbled to a new 52-week low of $1.09 today. The shares of the company behind retail brands such as Athlete’s Foot and Hype DC have now fallen almost 27% since the turn of the year. The reason for the decline was a disappointing start to the second-half which meant the company had to cut its full-year guidance. At 15x trailing earnings and providing a fully franked 5.5% dividend, I think RCG could be worth a closer look at the current price.

The Shine Corporate Ltd (ASX: SHJ) share price has fallen to a new 52-week low of 55.5 cents today. This means the legal services provider’s shares have now dropped as much as 57% in the last six months. News that state governments plan to crack-down on fraudulent third-party insurance claims has been the catalyst for the plunge. Although at a little over 4x trailing earnings its shares look dirt cheap, I expect there could be a serious drop in profitability that justifies the low multiple. I would avoid this one for the time being.

The Vicinity Centres Re Ltd (ASX: VCX) share price has dropped to a 52-week low of $2.69. This real estate investment trust is focused on the retail industry and owns stakes in shopping centres such as Chatswood Chase Sydney, Chadstone Shopping Centre, and the DFO in Essendon. Despite the drop, its shares are still changing hands at 18x trailing earnings. Considering its weak half-year result and outlook I think this is a touch expensive and would suggest investors stay clear of this one.

Finally, here are three growth shares which I expect to smash the market this year and push for new 52-week highs.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often full franked..

But knowing which blue chips to buy, and when, can often be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.