Why these 3 shares just sunk to 52-week lows

Reporting season can knock shareholder sentiment for six and for these three ASX-listed companies 52-week low territory is upon them.

Telstra Corporation Ltd (ASX: TLS)

Investors have shied away from telecommunications giant Telstra since the release of its interim results on February 19 as the share price slipped from $3.44 on the day of the results presentation to today’s open of $3.35 – a 52-week low. The stock went ex-dividend yesterday as investors take the chance to exit a stock in a downward trend.

Telstra’s share price has plummeted since this time last year, when it was at $4.64, with investors failing to get excited over the company’s above consensus net profit of $1.7 billion for the six months to December 31 2017, with mobile subscriber numbers on the up and cost-cutting initiatives paying off.

Analysts have put a hold rating on the stock, with speculation its average revenue per user (ARPU) for mobile phones is dropping and that this could spell trouble on the horizon.

The cause is probably increasing competition from the likes of Optus and Vodafone in the aggressive mobile phone space, but Telstra’s user base loyalty underpins its cash flow and growth potential, so any slip in user revenue is concerning.

The next six months will be interesting to track for Telstra with an eye on mobile margins – Telstra currently generates the highest mobile margins in the world, but how long can it maintain this mantle?

Myer Holdings Ltd (ASX: MYR)

Shares in Australian department store stalwart Myer Holdings Ltd are down 2.9% to 43c per share at the time of writing, a 52-week low and down from $1.20 on this day last year.

News broke today that Myer’s own landlord, Westfield, owned by Scentre Group (ASX: SCG), may replace Myer’s floorspace in key locations such as the flagship Westfield Sydney CBD store, to make room for more profitable tenants.

More drama ensues as Solomon Lew is engaged in a fight to the death with Myer’s board, with Lew saying the entire board should be replaced.

Solomon Lew is the chairman of Premier Investments Limited (ASX: PMV), a significant shareholder in Myer, with brands like Smiggle and Just Jeans under its hat, and despite Myer’s volatility in the same sector, Premier has been tracking along more steadily in comparison, with its share price of $13.65 at the time of writing.

Myer shares have been on a downward dive since the retailer signalled in mid-February there was no end in sight for dismal trading conditions with write-downs for first half results due to come out this month.

It is certainly troubled times for Myer and there hasn’t been much smooth sailing since the company relisted on the ASX in 2009, but the bad news is certainly dominating the headlines.

Bendigo and Adelaide Bank Ltd (ASX: BEN)

Shares in banking and financial services company Bendigo and Adelaide Bank Ltd are sitting at a 52-week low, down 4.3% to $10.85 at the time of writing, down from $12.14 on this day last year.

Bendigo, with 520 branches across Australia, released strong interim results on February 12 with an after tax statutory profit of $231.7 million for the six months to December 31, 2017.

But Bendigo’s underlying cash earnings of $225.3 million and the announcement of a 35c per share fully franked interim dividend, up 1c, have failed to push share prices in the right direction.

Bendigo share prices have been volatile over the last 12 months, despite Bendigo chair Robert Johanson publicly declaring its commitment to the Victorian region from which it emerged 160 years ago, with the company making an effort to retain its status as “Australia’s most trusted bank”.

Increasing regulation is an issue for Bendigo, but their community bank model seems to be delivering solid results, despite being slightly lower than expectations.

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Motley Fool contributor Carin Pickworth owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited and Telstra Limited. The Motley Fool Australia has recommended Scentre Group. 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 Scott Phillips.

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