Are these 3 beaten down shares in the bargain bin?

Recent volatility means that over the last 12 months the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has only managed to make a gain of 1%.

Whilst this is disappointing, spare a thought for the shareholders of the three shares listed below.

These three shares are amongst the worst performers on the index during the last 12 months with sizeable declines.

Are they bargain buys now?

The Mayne Pharma Group Ltd (ASX: MYX) share price is down 54% since this time last year. The pharmaceutical company has come under significant pressure this year amid price deflation in the generic drugs market. This has occurred after a consolidation in the industry left just a few buyers accounting for the vast majority of the industry’s purchases. While things have yet to improve, importantly it does appear that prices have stabilised now. I wouldn’t be a buyer just yet, but I will be listening to what management says about the industry and its outlook at its upcoming half-year results release.

The Retail Food Group Limited (ASX: RFG) share price has been the worst performer on the index with a 70% decline over the last 12 months. This has been caused by negative media coverage in the Fairfax press related to its alleged poor treatment of franchisees. If the company can move beyond this quickly and turn around its performance then its shares could prove to be dirt cheap, but I’m quite doubtful of this. I suspect the company could see franchise purchases and renewals slump considerably over the next few years.

The Telstra Corporation Ltd (ASX: TLS) share price is down 34% since this time last year. The main catalyst for this decline was confirmation that it would cut its dividend down to 22 cents per share in FY 2018. Whilst this share price decline was a big disappointment for existing shareholders, I feel it has presented an opportunity for non-shareholders to buy Telstra’s shares at a very attractive price. I remain confident the telco giant will be able to at least maintain its 22 cents per share dividend in FY 2019 thanks largely to cost cutting initiatives. Beyond that I see growth opportunities from the launch of 5G in Australia.

But if you're not keen on Telstra and like dividend shares, then these fast-growing dividend shares could be just what you're looking for.

Top 3 ASX Blue Chips To Buy In 2018

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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%.

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.

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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 Retail Food Group Limited and Telstra 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.

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