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.

So I would forget Neometals and invest in these quality growth shares which I think are strong buys today.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can 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.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

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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