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Is it time to buy 1-Page Ltd, Sirtex Medical Limited or ERM Power Ltd?

Credit: Sirtex Medical

Could now be the time to bag a bargain buying shares in 1-Page Ltd (ASX: 1PG), Sirtex Medical Limited (ASX: SRX) or ERM Power Ltd (ASX: EPW)?

With all three stocks hitting fresh 52-week lows this week, it certainly could be worthwhile taking a closer look at each company.

Here are some initial thoughts…

Shares in 1-Page have slumped around 80% in the past year and closed trade on Tuesday at 40 cents after soaring as high as $5.69!

1-Page offers an online human resources solution to simplify the hiring process for companies. While it would seem fair to say that the market got carried away with the pricing of this business, the continued good news flow could support the current price level. However investors do need to remember that this remains an early stage, speculative investment.

Sirtex Medical is one of the ASX’s leading medical device companies with a world-leading treatment for liver cancer. The stock has provided a couple of “scares” to the market in recent times with lower-than-anticipated dose sales causing the latest hiccup.

Although the news flow from Sirtex has arguably been disappointing, the severity of the sell-off may have been an overreaction for what remains a high-quality business.

ERM Power, a company with energy generation and sales operations across Australia and the United States, plunged a further 21% on Tuesday after losing 24% on Monday.

The catalyst was a company update released this week which affirmed the group’s current year guidance, however, a statement regarding ERM’s Australian retailing business noting that it “anticipates load growth and margin pressure” appears to have spooked investors.

A cursory look of the numbers would suggest that the sell-off in ERM’s shares could be overdone, however there are a number of moving parts and an investor would need to undertake detailed analysis to determine if the market has the pricing wrong.

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Motley Fool contributor Tim McArthur 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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