Unsurprisingly after the market’s heavy fall yesterday, a number of shares have just touched on 52-week lows.
Three shares in particular caught my eye. Is now the time to snap them up?
The Greencross Limited (ASX: GXL) share price tumbled to a 52-week low of $5.36 today. This means the shares of the integrated pet care company have fallen approximately 22% year-to-date. Whilst I am a big fan of its veterinary clinics, I am a little concerned about how the weak retail environment will impact its Petbarn stores. But at less than 14x trailing earnings, I think these concerns are largely priced in now. This could make it a good time to make a buy and hold investment in Greencross.
The Medusa Mining Limited (ASX: MML) share price is down 43% year-to-date and has just hit a 52-week low of 28 cents. This decline is due to an unexpected increase in costs and two revisions to its production guidance. Management revised its full-year production guidance to between 77,000 and 80,000 ounces of gold with all-in sustaining costs of between US$1,250 and US$1,350. Unfortunately for Medusa, the current spot gold price is only US$1,252 an ounce. I would avoid this gold miner, especially as I feel the gold price is likely to go lower from here.
The Retail Food Group Limited (ASX: RFG) share price has fallen sharply this week to a 52-week low of $4.47. Whilst I do like the company’s coffee businesses and think it provides a very generous dividend, there are certain parts of the business that I feel are negatively impacting its overall performance. I’m not convinced its shares have found a bottom yet, so investors may want to hold off an investment for the time being.
Or alternatively you could look at making an investment in all three of these shares...
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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Greencross Limited and Retail Food Group Limited. 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.