3 beaten down ASX shares I’m tipping to rebound in 2017

In the last six months the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has climbed a stunning 10.5% thanks largely to a rally in resources and bank shares.

Unfortunately during the same period several shares have gone the other way. Three in particular have stood out with significant declines. Are they beaten down bargain buys now?

The Ardent Leisure Group (ASX: AAD) share price has plunged a whopping 35% in the last six months. The tragic incident at its Dreamworld theme park and the subsequent impact it has had on visitor numbers has largely been to blame for the sell-off. But with signs of improvement being seen at its theme parks and its lucrative Main Event business in the United States growing strongly, I think Ardent Leisure could prove to be a bargain buy after this decline.

The Altium Limited (ASX: ALU) share price has dropped 20% in the last six months. I believe this is an opportunity for investors to snap up shares at a great price. The company’s printed circuit board design software continues to grow in popularity thanks largely to the incredible rise of connected devices. According to information technology research firm Gartner, there will be 20.8 billion connected devices in use worldwide by 2020, up from an estimated 6.4 billion last year. It is because of this that management has predicted that revenue will double over the next three to four years.

The Mayne Pharma Group Ltd (ASX: MYX) share price has fallen 34% during the last six months as price-fixing allegations and President Trump’s plan to shake up the pharmaceutical industry weigh heavily on its shares. But at just 12x annualised earnings and growing revenue in the triple digits, I believe Mayne Pharma provides investors with a compelling risk/reward. It may be a bumpy ride for shareholders over the next 12 months, but I believe the company can grow significantly over the next decade.

Finally, if you're not as confident as I am that a turnaround is coming then I would suggest you take a look at these hot shares which continue to grow like wildfire.

A Big, Fat, Fully Franked Dividend

This company's dividend is almost the stuff of legends. Since it started paying dividends in 2007, it has increased its payout to shareholders every single year, a run that includes 21 consecutive dividend increases.

Based on the last 12-months of dividends, its shares are currently offering a fully-franked 4.8% yield, which grosses up to almost 7% when those franking credits are included. And in stark contrast to the likes of Commonwealth Bank and Telstra, this company just increased its dividend by over 13%, and guided for 2017 profits to grow by 20%!

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Altium. 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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