Should you buy these super cheap ASX shares?

The Fortescue Metals Group Limited (ASX:FMG) share price is one of three that looks dirt cheap right now. Should you snap them up?

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While a lot of high quality shares are changing hands on sky high earnings multiples, there are a handful of shares trading at a discount to the market average.

Three in particular that look cheap are listed below. Are they bargain buys?

The Fortescue Metals Group Limited (ASX: FMG) share price has fallen 27% in the last three months due to weakness in the iron ore price. This has left its shares changing hands at just 5x trailing earnings. Whilst this does make its shares dirt cheap, I would suggest investors hold off an investment in the iron ore producer until the price of the base metal finds its bottom. According to Metal Bulletin, the spot 62% fines price fell 2.5% to US$57.02 a tonne overnight. I believe this is just the start of greater declines and expect concerns about an oversupply could take the iron ore price below US$50 a tonne in the next few months.

Despite an exceptionally strong run last month, the iSentia Group Ltd (ASX: ISD) share price is still down 39% year-to-date. This means the media monitoring company's shares can be snapped up for just 10x trailing earnings today. Whilst I think this could prove to be a bit of a bargain, I'm staying away from the company until its embattled content marketing business has turned a corner. The King Content business has been a major drag on iSentia's results since its acquisition and is expected to make a loss this year.

The Mayne Pharma Group Ltd (ASX: MYX) share price has dropped 31% in the last six months amid allegations of price-fixing and concerns over President Trump's policies on generic drug prices. This means investors can pick up shares in the growing pharmaceutical company for just under 11x annualised earnings. I'm a huge fan of the company and believe it could prove to be an excellent buy and hold investment. However, investors might want to wait for the high level of short interest to subside before investing in Mayne Pharma.

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.

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