MENU

These 3 ASX shares just hit 52-week lows: Are they bargain buys?

Although it has recovered now, in early trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) sank notably lower.

Unsurprisingly this led to a number of well-known shares dropping deep into the red at the open.

Three which fell to 52-week lows are listed below. Here’s why they are down in the dumps right now:

The BT Investment Management Ltd (ASX: BTT) share price hit a 52-week low of $9.53 this morning. The fund manager has come under pressure in recent weeks amid concerns that it could be experiencing a decline in funds under management both in Australia and in the UK through its JO Hambro business. Another factor that is possibly weighing on its share price is its plan to drop the BTIM name. The company will soon be known as Pendal Group Limited. Investors may be concerned that the switch could be a short-term headwind due to the loss of a well-known brand name and the increased marketing spend that rebranding brings. I would suggest investors wait for its next results before deciding whether to make an investment.

The Fortescue Metals Group Limited (ASX: FMG) share price tumbled to a 52-week low of $5.17 on Monday. Shareholders have been heading to the exits in their droves after the company admitted last month that its iron ore discount was widening. According to the release, Fortescue is selling its low-grade produce at 62% of the price of the benchmark 62% fines. This was down from 68% during the first-half and is due to steel makers favouring less polluting high-grade ore at present. Whilst Fortescue’s shares do look dirt cheap, I’m not convinced the discount is as wide as it will get. Investors may want to hold out until there are signs that prices are stabilising.

The Magellan Financial Group Ltd (ASX: MFG) share price has hit a 52-week low of $22.89 today. The fund manager’s shares have now fallen a massive 22.5% from the 52-week high they made in June of 2017. Investors appear to have been concerned that Magellan could have been suffering from weak fund inflows amid the increased market volatility, particularly in the United States. This morning the fund manager confirmed that total funds under management fell to $65,279 million from $65,363 million in March. This was, however, performance related. Magellan experienced net inflows of $648 million during the month. I think this decline could be a buying opportunity.

3 Great Value Growth Shares to Buy in April

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2018."

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.

Click here to claim your free report.

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 Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.