It's results season again, and that inevitably means we'll be seeing a bunch of new 52-week lows and highs as investors dive into or bail out of various stocks.
Today we're looking at three companies to determine whether they represent value at current prices, or if they have rightfully been consigned to the bargain bin:
JB Hi-Fi Limited (ASX: JBH) – last traded at $17.46, down 5.72% for the year.
Investors have abandoned JB Hi-Fi in droves after its preliminary final report was released Monday, sending the stock down over 10% in that time.
I think it's a gross overreaction to what I thought was a flat-out awesome report during tough retail conditions.
It's a mark of a highly competitive company that it can deliver results during hard times and the drop in price makes JB a pretty appealing retail stock.
I'd say it has gone as far as it is likely to go, with investors likely to make up the gap over the next few weeks.
Senex Energy Ltd (ASX: SXY) – last traded at $0.65, down 11% for the year.
Senex has bumped slightly upwards since making its appearance in last week's article, though it did go slightly lower on Monday which is why it has been included again today.
With very impressive June quarter results and a recent increase in proven + probable reserves of 50%, Senex represents great value and if I had to buy an oil company right now, Senex is the one I'd choose. It's hard to say if it will go any lower as the recent downswing in price doesn't appear to have any major causes behind it.
Macquarie Telecom Group Ltd. (ASX: MAQ) – last traded at $5.22, down 35% for the year.
Not to be confused with Macquarie Atlas Roads Limited (ASX: MQA), Macquarie Telecom is an internet hosting and mobile network company that has been sold off by investors in advance of its annual report, which will be released on 28 August.
Since warning investors two months ago of an expected decline in earnings due to faster-than-expected customer migration (to newer, cheaper services), Macquarie shares have lost more than 25%.
The company expects that over time reduced earnings will be compensated for by lower costs of the newer hosting services.
However until then, and despite expected growth from the mobile business, I think that Macquarie Telecom's shares could well trend lower, though they are starting to look cheap at current valuations.
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Even though this company is at 52-week highs it has hardly shifted from where it was a year ago, despite announcing big plans for future expansion and reporting earnings growth greater than its share price growth.
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