In the last 12 months the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has managed to gain an impressive 11.5%. This strong performance has left the benchmark index just a fraction lower than its 52-week high of 5,833 points.
Unfortunately not all shares on the market have managed to perform as strongly. In fact, three shares in particular have just hit 52-week lows. Here’s why:
The Australian Vintage Limited (ASX: AVG) share price hit a 52-week low of 43 cents yesterday. The wine company behind brands such as Nepenthe, Passion Pop, and McGuigan Wines has seen its shares come under pressure since the release of a disappointing half-year result. As the company has significant exposure to the UK market, the depreciation of the British pound has hit its bottom line. But with a distribution deal recently signed with a top US distributor, it could be worth giving Australian Vintage more time.
The CSG Limited (ASX: CSV) share price has fallen 41% year-to-date and reached a 52-week low of 43 cents on Tuesday. The print and business technology solutions provider’s shares took a dive after a disastrous half-year result led to yet another downgrade to full-year revenue and earnings guidance. Although its shares do look cheap now, management’s inability to accurately forecast its business performance doesn’t fill me with confidence. For this reason I would avoid CSG.
The GBST Holdings Limited (ASX: GBT) share price tumbled to a 52-week low of $2.64 yesterday. Thanks largely to a weaker-than-expected half-year result, the financial technology company’s shares have now fallen a massive 29% in 2017. Like Australian Vintage, GBST has significant exposure to the UK. Management blamed much of the 20% drop in half-year revenue on soft economic conditions in the country. But they clearly believe things will improve judging by the way they have been buying up shares.
Finally, if your portfolio took a hit from these declines then I would suggest you give it a lift with an investment in one of these three growth shares. I'm tipping each of them to smash the market this year.
For many, blue chip stocks means stability, profitability and regular dividends, often full franked..
But knowing which blue chips to buy, and when, can often be fraught with danger.
The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2017."
Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.
If you’re expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you’ll be sorely disappointed. Not only are their dividends growing at a snail’s pace, their profits are under pressure too due to the increasing competitive environment.
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Motley Fool contributor James Mickleboro 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.