These shares just hit 52-week lows: Will they bounce back?

Considering the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) fell sharply yesterday, it will come as little surprise to learn that a number of ASX shares fell to 52-week lows.

Three which caught my eye are listed below. Will they bounce back?

The Mayne Pharma Group Ltd (ASX: MYX) share price fell to a 52-week low of $1.04 on Thursday. Allegations of price-fixing and concerns that the Trump administration will slash the price of generic drugs have weighed heavily on the pharmaceutical company’s shares. So much so its shares have now halved in value since August of last year. Whilst I’m a huge fan of the company and believe it could prove to be a bargain buy, investors may be best off waiting until Trump’s policies on generic drugs are fully understood. Especially considering that short sellers are taking an interest in the company.

The Reject Shop Ltd (ASX: TRS) share price tumbled to a 52-week low of $3.36 yesterday. This latest decline means the struggling retailer’s shares have fallen almost 60% year-to-date. The catalyst for this decline has been a market update in April which revealed that trading conditions have continued to deteriorate. If conditions remain as they are, then the company expects to post a second-half loss of $5 million. With both Aldi and Amazon threatening to steal market share away from the discount retailer, I believe things could still get worse from here unfortunately. In light of this I would suggest investors stay clear of the retailer despite how cheap it looks.

The Sirtex Medical Limited (ASX: SRX) share price was smashed on Thursday and dropped to a multi-year low of $10.45 following the release of its FOXFIRE clinical trial results. The trial was conducted to study the effectiveness of its selective internal radiation therapy as a first-line treatment for patients with liver metastases from colorectal cancer. Unfortunately the results showed no signs of improvement in overall survival times in patients. This is just the latest in a series of disappointing updates from the company. Whilst things may improve and Sirtex could rebound strongly, I don’t think it is worth taking the risk when there are far better options for investors in the healthcare sector.

These fast-growing shares, for example, would be a far better option than Sirtex for investors in my opinion.

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.

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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