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These shares just tumbled to 52-week lows: Is it time to invest?

With the All Ordinaries (Index: ^AXAO) (ASX: XAO) sinking notably lower today, it will come as little surprise to learn that a number of shares have touched on 52-week lows.

Three shares that have reached this unwanted milestone are listed below. Are they in the buy zone now?

The National Australia Bank Ltd (ASX: NAB) share price fell to a 52-week low of $27.00 on Tuesday. The banking sector has come under pressure this week after round three of the Royal Commission commenced with a focus on small business lending. With its shares now offering investors a trailing 7.3% dividend, I think it could be a great option for income investors that have little by way of exposure to the big four banks. However, its shares may remain more volatile than normal whilst the Royal Commission is ongoing.

The Retail Food Group Limited (ASX: RFG) share price continued its slide and hit a new 52-week low of 78.5 cents today. The embattled food and beverage franchisor has fallen out of favour with investors amid allegations it was treating its franchisees unfairly. This negative media coverage has led to concerns that its store network could shrink over the coming years as renewals and new franchise sales fall. However, the company has announced plans to enter the UK market with its Gloria Jean’s brand today. The company advised that it intends to open 190 outlets in the country within the next decade. While this could be great news if it succeeds, I would still avoid Retail Food Group at all costs.

The Telstra Corporation Ltd (ASX: TLS) share price tumbled to a 52-week low of $2.71 this morning. Market sentiment continues to weaken for the embattled telco company following its recent trading update and mobile outage on Monday. Unfortunately, I suspect its share price may continue to be weighed down until there are signs that it will be able to maintain its 22 cents per share dividend in FY 2019. While I think Telstra is an attractive option, with sentiment so weak I’m not convinced it has bottomed just yet.

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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 Telstra Limited. The Motley Fool Australia owns shares of National Australia Bank 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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