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3 ASX shares at 52-week lows: Is it time to invest?

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) may be pushing higher on Wednesday but not all shares have been able to follow the market higher.

In fact, a few shares have fallen to 52-week lows today. Three that caught my eye are listed below, are they in the buy zone now?

The Blue Sky Alternative Investments Ltd (ASX: BLA) share price has continued its slide and hit a multi-year low of $3.55 on Wednesday. Investors continue to head to the exits after the embattled investment company downgraded its guidance for FY 2018. This was also too much for Morgans who recently co-led a $100 million capital raise at $11.50 per share. The broker has slashed the price target on its shares from $14.85 to $5.55 according to the AFR. At $3.55, Blue Sky’s shares are getting ever closer to Glaucus’ price target of $2.66. I would stay clear of the company as I suspect this scandal won’t blow over as quickly as it would like.

The Challenger Ltd (ASX: CGF) share price tumbled to a 52-week low of $11.07 this morning. The annuities company has come under heavy selling pressure since the release of its solid half-year result. Although that result was in line with expectations, I feel its shares were priced for outperformance. But with its shares now shedding 24% of their value since February, I think Challenger is beginning to look attractive again. While its shares could still drift a little lower from here, I think it is well worth considering an investment following this recent price weakness.

The Village Roadshow Ltd (ASX: VRL) share price has touched on another multi-year low of $2.55 this morning. This means that the entertainment company’s shares have now fallen over 36% since this time last year. Whilst this sounds bad, it is even worse if you stretch things out over a two-and-a-half-year period. Since the start of 2016, Village Roadshow’s shares have lost 66% of their value. Incredibly, this underperformance has come at a time when Australia is experiencing a tourism boom. Weakness in its Cinema and Theme Park segments during the Commonwealth Games have been blamed for its most recent underperformance. While its shares do look cheap now, I’m not convinced its turnaround is coming any time soon. As such, I would stay clear of Village Roadshow.

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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 Challenger 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 Scott Phillips.

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