These shares just hit 52-week lows: Will they bounce back?

The Sirtex Medical Limited (ASX:SRX) share price is one of three that dropped to 52-week lows yesterday. Are they in bargain territory now?

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Considering the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) fell sharply yesterday, it will come as little surprise to learn that a number of ASX shares fell to 52-week lows.

Three which caught my eye are listed below. Will they bounce back?

The Mayne Pharma Group Ltd (ASX: MYX) share price fell to a 52-week low of $1.04 on Thursday. Allegations of price-fixing and concerns that the Trump administration will slash the price of generic drugs have weighed heavily on the pharmaceutical company's shares. So much so its shares have now halved in value since August of last year. Whilst I'm a huge fan of the company and believe it could prove to be a bargain buy, investors may be best off waiting until Trump's policies on generic drugs are fully understood. Especially considering that short sellers are taking an interest in the company.

The Reject Shop Ltd (ASX: TRS) share price tumbled to a 52-week low of $3.36 yesterday. This latest decline means the struggling retailer's shares have fallen almost 60% year-to-date. The catalyst for this decline has been a market update in April which revealed that trading conditions have continued to deteriorate. If conditions remain as they are, then the company expects to post a second-half loss of $5 million. With both Aldi and Amazon threatening to steal market share away from the discount retailer, I believe things could still get worse from here unfortunately. In light of this I would suggest investors stay clear of the retailer despite how cheap it looks.

The Sirtex Medical Limited (ASX: SRX) share price was smashed on Thursday and dropped to a multi-year low of $10.45 following the release of its FOXFIRE clinical trial results. The trial was conducted to study the effectiveness of its selective internal radiation therapy as a first-line treatment for patients with liver metastases from colorectal cancer. Unfortunately the results showed no signs of improvement in overall survival times in patients. This is just the latest in a series of disappointing updates from the company. Whilst things may improve and Sirtex could rebound strongly, I don't think it is worth taking the risk when there are far better options for investors in the healthcare sector.

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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »