The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) managed to put on an impressive performance last week which offered some much needed relief to investors. Despite the index’s 3.7% gain last week there are still significant uncertainties facing investors…
The oil price is down over 50% after continuing its slide throughout January to levels not seen since the depths of the Global Financial Crisis in 2009 of US$49 a barrel; the slowdown in growth rates in China has sent iron ore crashing to a five-year low; meanwhile the Australian dollar has sunk below US80 cents for the first time in around six years.
The culmination of these events has been particularly harsh for investors in some of Australia’s leading commodity firms including Santos Ltd (ASX: STO) and Fortescue Metals Group Limited (ASX: FMG) which have fallen to ten-year and five year-lows respectively.
Falling share prices haven’t only been a problem for investors in commodity-exposed sectors with a number of other companies hitting new 52-week lows recently. Amongst these decliners could be some exciting opportunities. Here are three which could be worth a closer look.
- Leading insurance broker Austbrokers Holdings Limited (ASX: AUB) revised down its earnings forecast last week with guidance now suggesting a relatively flat profit result for financial year 2015 compared with the prior period. The share price fell 17% on Friday which could more than compensate investors for the weaker growth outlook.
- Newly listed aged care service provider Estia Health Ltd’s (ASX: EHE) share price has struggled since listing via initial public offering in December 2014 at $5.75. With a defensive stream of earnings and the favourable tailwind of an aging population, the current share price of $4.50 may start to look appealing to long-term investors.
- Micro-cap car parking technology developer Smart Parking Ltd (ASX: SPZ) hit a low of 10 cents per share last week despite no recent news from the company. Smart Parking is continuing to expand its footprint in the UK and remains an exciting growth story.
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Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned.
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