3 ASX shares at 52-week lows: Time to buy?

The BWX Ltd (ASX:BWX) share price is one of three at 52-week lows or worse. Is this a buying opportunity?

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On Monday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) may have pushed higher, but not all shares were able to follow suit.

Some even fell to 52-week lows or worse. Three shares that reached this unwanted milestone are listed below. Here's why they are on the decline:

The BWX Ltd (ASX: BWX) share price fell to a 52-week low of $3.75 yesterday after the personal care products company advised that Bain Capital would not be going ahead with its $6.60 takeover offer after 12 weeks of due diligence. This decline means the shares of the company behind the Sukin skincare range are now trading at a reasonable 19x earnings. While I thought its recent full year result was a touch underwhelming, if it returns to form in FY 2019 then BWX's shares could prove cheap at these levels.

The Japara Healthcare Ltd (ASX: JHC) share price sank to an all-time low of $1.32 on Monday after Prime Minister Scott Morrison announced a royal commission into Australia's aged care system. This is the latest blow for an industry struggling to live up to the market's expectations and I'm not surprised to see Japara and its peers tumble lower. While Japara's shares are arguably dirt cheap now, I intend to stay clear of its shares until after the royal commission. As we saw with the banks, such inquiries can weigh heavily on investor sentiment and drag shares lower and lower.

The Reckon Limited (ASX: RKN) share price tumbled to a decade-low of 80 cents yesterday. This accounting software company has seen its shares fall significantly this year after the takeover by MYOB Group Ltd (ASX: MYO) was blocked by the ACCC. I suspect the market is struggling to see how Reckon can successfully compete with its larger rivals in a highly competitive market. As a result, I'm not expecting to see a meaningful recovery in its share price any time soon.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BWX 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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