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Should you buy these unloved ASX shares?

Market darlings such as Aristocrat Leisure Limited (ASX: ALL) and Afterpay Touch Group Ltd (ASX: APT) may have investors fighting to get hold of their shares, but not all shares on the local market share the same positive investor sentiment.

The two shares listed below are amongst the most unloved shares on the ASX right now. But should you give them a chance?

Ardent Leisure Group (ASX: AAD)

Late last year Ardent Leisure agreed to sell its Bowling & Entertainment division to The Entertainment and Education Group for $160 million on a debt and cash free basis. This left the company with just its theme parks business and its US-based Main Event business following previous sales of its marinas and health clubs.

I wouldn’t necessarily expect the selling to stop there either and suspect that management will soon offload its theme parks so it can concentrate fully on the fast-growing Main Event chain. In my opinion this makes Ardent Leisure an attractive option for investors today. Main Event is an excellent business that produces a strong return on investment and has the potential to expand across the United States.

Telstra Corporation Ltd (ASX: TLS)

This telco giant fell out of favour with investors last year when it decided to cut its dividend to 22 cents per share in FY 2018. As disappointing as it was, it had to be done in order for the company to reinvest in future growth opportunities.

Whilst its future is not as certain as it was 10 years ago, I have confidence that management will be able to return the company to growth again in the future. This could make Telstra a decent option for investors, especially given that its shares should provide a fully franked 6% dividend over the next 12 months. This easily beats anything on offer with term deposits and savings accounts.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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