Unsurprisingly after the market's heavy fall yesterday, a number of shares have just touched on 52-week lows.
Three shares in particular caught my eye. Is now the time to snap them up?
The Greencross Limited (ASX: GXL) share price tumbled to a 52-week low of $5.36 today. This means the shares of the integrated pet care company have fallen approximately 22% year-to-date. Whilst I am a big fan of its veterinary clinics, I am a little concerned about how the weak retail environment will impact its Petbarn stores. But at less than 14x trailing earnings, I think these concerns are largely priced in now. This could make it a good time to make a buy and hold investment in Greencross.
The Medusa Mining Limited (ASX: MML) share price is down 43% year-to-date and has just hit a 52-week low of 28 cents. This decline is due to an unexpected increase in costs and two revisions to its production guidance. Management revised its full-year production guidance to between 77,000 and 80,000 ounces of gold with all-in sustaining costs of between US$1,250 and US$1,350. Unfortunately for Medusa, the current spot gold price is only US$1,252 an ounce. I would avoid this gold miner, especially as I feel the gold price is likely to go lower from here.
The Retail Food Group Limited (ASX: RFG) share price has fallen sharply this week to a 52-week low of $4.47. Whilst I do like the company's coffee businesses and think it provides a very generous dividend, there are certain parts of the business that I feel are negatively impacting its overall performance. I'm not convinced its shares have found a bottom yet, so investors may want to hold off an investment for the time being.
