Are these beaten down ASX shares bargain buys?

It certainly has been a month of ups and downs for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). But despite this, the index has managed to carve out a 1.5% gain in the last 30 days.

Unfortunately not all shares have been able to follow the market higher. Three shares in particular have suffered sizeable declines. Are they bargain buys now?

The Hydroponics Company Ltd (ASX: THC) share price has fallen 14% since this time last month. The diversified cannabis company’s shares hit the ASX boards at the start of May and had a flying start. But since then they have been on a steep decline despite a series of positive announcements. The most recent one was that first-quarter revenue increased by more than 22% year-on-year to $1.1 million. Whilst its shares could one day prove to be a bargain at the current price, I plan to watch on from the sidelines until medicinal cannabis use gains traction.

The Monash IVF Group Ltd (ASX: MVF) share price has dropped 18% in the last 30 days. The resignation of its CEO, competition from a low-cost operator, and the departure of one of its leading doctors have weighed heavily on this fertility treatment company’s shares. But with its shares changing hands at 12x annualised earnings and providing a trailing fully franked 5.6% dividend, Monash IVF could be worth taking a closer look at. Especially as the strong underlying demand fundamentals for IVF and women’s imaging services puts the company in a good position to grow its earnings at a reasonable rate.

The Sigma Healthcare Ltd (ASX: SIG) share price is down 26% in the last 30 days. The shares of the pharmacy chain operator and supplier came under significant selling pressure when it revealed that it is taking legal action against The My Chemist/Chemist Warehouse Group. The action relates to the group’s plan to source certain products from a different supplier. With the current supply agreement due to end mid-2019, it looks very unlikely to be renewed in my opinion. This will almost certainly leave a big gap in Sigma’s future earnings. Whilst it does look dirt cheap now, I would stay clear of the company until the matter is resolved.

Not all shares have been beaten down this year. These shares have gone gangbusters and I don't expect them to slow down any time soon.

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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.

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