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Should you buy these cheap ASX shares?

The Australian share market may have pushed notably higher yesterday, but not all shares were able to follow suit.

Some shares even sank to 52-week lows or worse on Wednesday. Are they in the bargain bin now?

The Apollo Tourism & Leisure Ltd (ASX: ATL) share price fell to a 52-week low of $1.35 on Wednesday. It has been quite a fall from grace for the vertically integrated manufacturer, rental fleet operator, wholesaler, and retailer of a broad range of RVs. Just six months ago its shares were at all-time high, but have been tumbling lower since it announced the acquisition of the Coromal and Windsor Caravan brands from Fleetwood Corporation Limited (ASX: FWD). These businesses had previously been a major drag on Fleetwood’s performance. I think Apollo Tourism & Leisure’s shares do look good value now, but I would like to see how the acquired businesses are performing before picking up shares.

The Estia Health Ltd (ASX: EHE) share price tumbled to a 52-week low of $2.36 yesterday as investors continue to ditch the aged care operators following the announcement of a Royal Commission. Although its shares look dirt cheap on paper, I wouldn’t be a buyer of them until after the Commission has taken place. As we have seen with the likes of AMP Limited (ASX: AMP) and the company listed below, such inquiries can drag even cheap-looking shares significantly lower.

The Freedom Insurance Group Ltd (ASX: FIG) share price continued its decline and hit an all-time low of 9.4 cents on Wednesday. Shareholders have been hitting the sell button in a hurry after the insurance seller’s poor practices were brought to light at the financial services Royal Commission. While Freedom may potentially be able to reinvent itself, I feel the brand damage and forced changes to its business model have put it in a precarious position. In light of this, I don’t believe it is anywhere near investment grade.

Instead of Freedom I would be buying this top share which is trading at an attractive level right now.

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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.

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