Are these beaten down blue-chip shares in the buy zone?

The S&P/ASX 200 (Index:^AXJO) (ASX:XJO) may have carved out a gain of almost 9% in the last 12 months, but these shares have been thoroughly beaten down. Is it time to buy?

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In the last 12 months the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has managed to navigate the Brexit and the U.S. election and carve out a gain of almost 9%.

Unfortunately not all shares on the index have managed to do the same. The two shares below have been thoroughly beaten down during this time. Are they in the buy zone now?

The Mayne Pharma Group Ltd (ASX: MYX) share price has fallen 25% in the last 12 months. Despite the $652 million acquisition of a portfolio of generic drugs from pharmaceutical giants Teva and Allergen, its shares are now valued less than they were pre-acquisition.

Price-fixing allegations and President Trump's proposed policies have weighed heavily on its shares and led to the sell-off. Whilst I think Mayne Pharma is very cheap now and a very tempting investment, its rising levels of short interest have put me off at this point.

The TPG Telecom Ltd (ASX: TPM) share price has almost halved in value in the last 12 months. Concerns over narrower than expected NBN margins and heightened competition in the telecommunications industry appear to be key catalysts to this decline.

But with the company moving into the mobile phone market through the launch of its own network and rolling out its own fibre internet services, I think TPG Telecom has positioned itself for above-average earnings growth over the next decade. This could make it an opportune time to make a buy and hold investment in my opinion.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of TPG Telecom Limited. 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.

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