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These shares just hit multi-year lows: Is it time to invest?

A spot of weakness on the market over the last few days has led to many shares dropping lower.

A few shares have dropped so much they have fallen to 52-week lows or worse.

Three that have achieved this unwanted feat are listed below. Is it time to snap them up on the cheap?

The PMP Limited (ASX: PMP) share price touched on a multi-year low of 23 cents yesterday. Although there has been no news out of the commercial printer for several months, the last piece of news was a bit of a bombshell and its share price has been reeling ever since. That news was a profit guidance downgrade on its already downgraded guidance. PMP originally expected EBITDA in the range of $70 million to $75 million before revising it lower to the range of $50 million to $55 million and then ultimately $40 million to $45 million. Judging by the share price performance since then, investors aren’t confident that it will achieve this. Nor am I given conditions in the commercial printing industry.

The Telstra Corporation Ltd (ASX: TLS) share price continued its decline on Wednesday and fell to a multi-year low of $2.61. Concerns over the sustainability of its dividend and a lack of investor confidence in its 2022 strategy has weighed heavily on its share price this month. While I do see a lot of value in its shares, I wouldn’t be a buyer until the company has either cut its dividend or given more clarity on its dividend intentions in FY 2019 and beyond.

The Think Childcare Ltd (ASX: TNK) share price hit a two-year low of $1.62 yesterday as investors continued to be bearish on the childcare industry. Concerns over falling occupancy levels as supply growth outpaces demand growth has weighed heavily on investor sentiment and the Think Childcare share price. Although Think Childcare has a pipeline of centres to acquire periodically that should provide it with inorganic growth, I wouldn’t be a buyer of its shares until there are big improvements in industry trends. Incidentally, the shares of its larger rival G8 Education Ltd (ASX: GEM) are hovering just above their own 52-week low at present.

Does your portfolio need a lift after these declines? Then these mid cap stars could be exactly what you are looking for.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

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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. 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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