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These ASX shares just slumped to 52-week lows

It hasn’t been the best of weeks for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). With a slight decline on Thursday, the benchmark index has now fallen for three consecutive days.

While this hasn’t stopped shares such as Bellamy’s Australia Ltd (ASX: BAL) and Sirtex Medical Limited (ASX: SRX) from storming higher, not all shares have been so lucky.

The two shares listed below have just slumped to 52-week lows. Here’s why:

The Aurizon Holdings Ltd (ASX: AZJ) share price fell to a 52-week low of $4.59 yesterday. Investors have been heading to the exits in their droves after an unfavourable decision by the Queensland competition watchdog on access pricing to the rail operator’s service. The Queensland Competition Authority has set the maximum revenue the company can make at around $3.9 billion. Aurizon believes that it will earn $1 billion less because of the draft decision. It is worth remembering that this is a draft, so things may not actually be as bad as first predicted. However, I wouldn’t consider being a buyer until everything is locked in.

The REVA Medical Inc (ASX: RVA) share price tumbled to a two-year low of 53 cents on Thursday. This medical device company has come under significant selling pressure over the last 12 months due largely to the decision by Boston Scientific to allow its exclusive right to negotiate for distribution of REVA’s coronary and peripheral bioresorbable scaffolds to expire. I believe this has led the market to be concerned that there may not be as great a commercial opportunity for the product as first thought. They could be right, the company reported $17,000 of revenue for the nine months ended September 30. Whereas R&D expenses were $3.1 million for just the third-quarter of 2017. It is early days, but I would approach this one with caution.

Need a lift after these declines? Then these top shares could be next in line to push higher if you ask me.

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Motley Fool contributor James Mickleboro has no position in any of the 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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