The CSL Limited (ASX: CSL) share price may have stormed to a 52-week high on Monday, but not all shares are having such a positive time right now.
Three that fell to a 52-week low yesterday are listed below. Are they in the buy zone now?
The Fortescue Metals Group Limited (ASX: FMG) share price fell to a 52-week low of $3.67 on Monday. Investors have been heading to the exits over the last 12 months due to the widening discount between the miner’s low grade ore and the in-demand high grade ore. Chinese steel makers have been forced to buy the high grade ore due to the government’s crack down on pollution. This recently led to Fortescue posting a 58% decline in full year net profit after tax to US$878 million. While Fortescue’s shares look to be good value now, I would suggest investors wait until the discount narrows.
The Freedom Insurance Group Ltd (ASX: FIG) share price dropped to an all-time low of 19 cents yesterday. The direct seller of insurance products has come under pressure over the last few days after ASIC released the findings of an investigation into direct life insurance sales in Australia. While Freedom was not one of the 11 companies investigated, the report didn’t paint a positive picture of the direct sales industry. This may have investors concerned that Freedom’s business model will have to be overhauled. Its shares do look cheap, but this may reflect its uncertain future.
The Western Areas Ltd (ASX: WSA) share price touched on a 52-week low of $2.38 on Monday after nickel prices continued to tumble. According to Reuters, nickel fell to a seven-month low on Monday amid concerns over trade wars, weak steel prices, and China’s economy. These concerns went up a gear last week when Chinese manufacturing activity grew at its slowest rate in over a year and export orders fell for a fifth month in a row. I would suggest investors keep their powder dry until prices have bottomed.
While waiting for nickel prices to bottom I would suggest investors look at these top blue chip shares which are growing at an impressive rate.
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.
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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%.
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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.