Despite its poor start to the week, since the middle of September the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has managed to put on an impressive gain of just over 9.5%.
The big four banks and miners such as BHP Billiton Limited (ASX: BHP) have played a key role in this gain, each putting on sizeable gains of their own.
Unfortunately not all shares have performed well during this time. In fact, the following three shares have fallen significantly. Does that make them bargain buys?
The Ardent Leisure Group (ASX: AAD) share price is down almost 36% since the middle of September. Unsurprisingly the tragic incident at its Dreamworld theme park is the reason for the decline in its share price. Visitor numbers and revenue in its theme park segment have taken a big hit, but are starting to show signs of recovery now. Whilst this is great news, the true driver of future growth in my opinion will be its lucrative US-based Main Event business. Management intends to significantly expand its footprint over the next few years, which I feel could lead to bumper profit growth.
The Mayne Pharma Group Ltd (ASX: MYX) share price has fallen 30% during this time, leaving its shares changing hands at a lowly 12x annualised earnings. Mayne Pharma's shares have come under heavy selling pressure due to price-fixing allegations and concerns over President Trump's plan to curb exorbitant drug prices in the United States. The majority of these declines came as a result of the price-fixing allegations. Management has been quick to clarify that any penalties imposed would not be material to earnings. In light of this I think Mayne Pharma could prove to be a bargain buy at the current share price.
With the TPG Telecom Ltd (ASX: TPM) share price down 42% since the middle of September, I believe this fast-growing telco company could also prove to be a bargain buy. TPG recently reported an 11% increase in half-year net profit after tax to $224 million. As a result, the company appears to be in a great position to easily meet its full-year guidance. Furthermore, there have been concerns that the NBN would result in a reduction in margins, but pleasingly TPG managed to expand its operating margin during the half. So with its shares changing hands at just over 16x trailing earnings, now could be the time to snap up its shares in my opinion.
