The last three months have certainly been kind to the majority of Australian investors. During that time the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has put on a strong gain of over 6%.
Unfortunately not all shares have performed as strongly. In fact, three shares in particular have been beaten-down considerably. Does this make them bargain buys now?
BWX Ltd (ASX: BWX)
The company behind the popular skincare brand Sukin has seen its share price fall 16.5% in the last three months. This drop has left its shares changing hands at 21x estimated FY 2017's earnings according to CommSec. If the company's expansion into the United Kingdom through Boots pharmacies is a success, this could make it a bargain buy in my opinion. This expansion, its strong domestic performance, and growth in China are expected to lead to earnings growth of 34.5% per annum through to FY 2019. If it delivers on this then I believe its share price could appreciate in value significantly.
Mayne Pharma Group Ltd (ASX: MYX)
Concerns over an investigation into price-fixing in the United States have led this growing pharmaceutical company's share price to plunge 29.2% in the last three months. This means Mayne Pharma's shares can be picked up for less than 15x estimated FY 2017's earnings. With any price-fixing fines unlikely to be material to earnings and the company in possession of a lucrative pipeline of drugs, I believe Mayne Pharma is a fantastic buy and hold investment at the current share price.
Vita Group Limited (ASX: VTG)
Vita Group is the operator of the Telstra Corporation Ltd (ASX: TLS) retail stores and business centres. Its share price has sunk 35% since news broke that the two parties were negotiating new commercial terms. These new terms are expected to provide volume growth, but also margin compression. With Vita Group's profit margin already a lowly 5.5%, the market appears concerned that its run of bumper profit growth has come to an end. With its shares trading at 14x trailing earnings it could prove to be a bargain buy, but I would hold off an investment until its half-year results in February. At that point investors will be able to see whether the new terms have impacted its performance positively or negatively.
