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Why these 3 ASX shares just hit rock bottom

While some shares are pushing higher and making new highs today, at the other end of the market there are a number of shares making the dreaded 52-week low.

Three shares which have just sunk to new lows are listed below. Here’s why they have fallen hard this year:

The Adairs Ltd (ASX: ADH) share price has dropped to an all-time low of 79 cents this morning. Today’s decline means the homeware retailer’s shares have lost a staggering 50% of their value year-to-date. The catalyst for this was lower bed linen sales, which led to a 35.3% drop in half-year net profit after tax and a further downgrade to its full-year guidance. Whilst its shares do look reasonably cheap now, I do fear that things could get worse. Especially with Amazon expected to launch in Australia later this year.

The Baby Bunting Group Ltd (ASX: BBN) share price has fallen to an all-time low of $1.76 today. The baby products retailer’s shares have now fallen 27% this year, despite delivering a 22% increase in half-year profit in February. Like Adairs, the prospect of Amazon stealing market share away from Baby Bunting appears to be the reason behind the sell-off. Whilst I think that Amazon does represent a threat, at 19x trailing earnings I do see value in Baby Bunting’s shares.

The Neometals Ltd (ASX: NMT) share price hit a 52-week low of 27 cents today. This means the lithium miner’s shares have almost halved in value since peaking at 52 cents in June of last year. Unlike some of its peers, Neometals has thus far failed to live up to the market’s expectations. Whilst I am bullish on lithium prices in the long run, I think there are far better options for investors to choose from in the industry.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Amazon. 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.

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