MENU

Is it time to buy these beaten down ASX shares?

With the market sinking notably lower on Wednesday it will come as no surprise to learn that a number of shares dropped deep into the red.

Three shares that tumbled to 52-week lows are listed below. Are these beaten down shares in the bargain bin?

The Pendal Group Ltd (ASX: PDL) share price fell to a 52-week low of $8.94 on Wednesday. Investors have been heading to the exits in their droves after the fund manager, formerly known as BT Investment Management, released its latest funds under management update. As well as coming under pressure from the weak update, Westpac Banking Corp (ASX: WBC) could be in the market selling its remaining stake. When the dust settles I think there could potentially be a buying opportunity, but I would wait for confirmation that the banking giant has offloaded its holding first.

The Reckon Limited (ASX: RKN) share price continued its decline and touched on a 52-week low of 90 cents yesterday. This accounting software company has seen its shares fall a massive 43% since the turn of the year after the takeover by MYOB Group Ltd (ASX: MYO) was blocked by the ACCC. Unfortunately, I can’t see Reckon successfully competing with its larger rivals in the highly competitive market. Because of this, I don’t expect to see a recovery in its share price any time soon.

The SKY and Space Global Ltd (ASX: SAS) share price finished the day at a 52-week low of 7.8 cents on Wednesday. Although the satellite company has announced a number of promising memorandum of understandings recently, investors appear to be wisely waiting to see if they turn into fully fledged contracts before acting on them. While I think SKY and Space Global has created a very excited technology, its market capitalisation is already pricing in a lot of success that is far from guaranteed. One to watch, but not one to buy just yet in my opinion.

Whereas this ASX small cap which is up 285% and shows no sign of stopping could be...

One Australian company has developed a state of the art device that's revolutionizing hospitals all over the world. Even better, this device is so profitable that the company rakes in 90% margins. That's a lot of cash. So no wonder the stock's up 285% since 2008 – with no signs of stopping...

To discover the name and code, simply click the link below. You'll discover our expert's #1 medical technology pick... and you can decide for yourself whether to get invested today.

Click here to claim your free report.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!