Yesterday while half of the population was on holiday the Australian share market was open as normal and sank notably lower on the lower trading volumes.
Unsurprisingly, this led to several shares sinking to 52-week lows or worse. Are these shares now in the bargain bin?
The CSR Limited (ASX: CSR) share price hit a 52-week low of $3.73 on Monday. Investors appear to believe that the building supplies company could find growth challenging in the coming years due to the slowdown in the housing market. While I do agree with this view and wouldn’t necessarily be in a rush to invest, I do feel that its shares are starting to look attractive at these levels. CSR’s shares are currently changing hands at 9.5x estimated FY 2019 earnings.
The Nufarm Limited (ASX: NUF) share price returned to trade and plunged to a 52-week low of $6.02 yesterday. The crop protection company’s shares sank lower after the completion of the institutional component of its fully underwritten 3 for 19 pro rata accelerated renounceable entitlement offer. The institutional component successfully raised approximately A$238 million. Like CSR, I think Nufarm’s shares are now trading at an attractive level. However, I would suggest investors hold out to see how it performs in the first half of FY 2019 before considering an investment.
The Regis Healthcare Ltd (ASX: REG) share price continued its decline on Monday and sank to a multi-year low of $2.81. The prospect of a Royal Commission into the aged care sector has led to investors hitting the sell button in a hurry. I can’t blame them and feel that there’s the potential for even further declines in the future if the Commission finds anything untoward. As a result, I would suggest investors stay well clear of the company’s shares for the time being. The same applies to rivals Estia Health Ltd (ASX: EHE) and Japara Healthcare Ltd (ASX: JHC).
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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.