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Should you buy these beaten down ASX shares?

The All Ordinaries index is in the red again on Thursday. This small decline means that the index has now seen its 12-month return reduced to just 1.3% excluding dividends following the recent market meltdown.

While this is disappointing, spare a thought for the shareholders of the three shares listed below which have been thoroughly beaten down during the period. Are they in the bargain bin now?

The Berkeley Energia Ltd (ASX: BKY) share price is down 66% over the last 12 months. The majority of this decline has come in recent days after reports emerged claiming that the Spanish government planned to block its open-cast uranium mine in Salamanca. According to CNBC, the Spanish government has decided not to deliver the permits necessary to open the mine. The company responded to the media reports by saying that it has received no official notice from the Nuclear Safety Council nor any other government department to date. But judging by the selloff, shareholders appear to believe it is only a matter of time before it receives notice. I would keep clear of its shares.

The Bionomics Ltd (ASX: BNO) share price has shed 62% of its value since this time last year. Like Berkeley Energia, the majority of this decline has come in recent weeks. Shareholders have been heading to the exits in their droves after Bionomics revealed disappointing results from the phase 2 clinical trial of its BNC210 novel drug candidate in patients with Post Traumatic Stress Disorder (PTSD). The trial did not meet its primary endpoint of a decrease in PTSD symptoms as measured by Clinician-Administered PTSD Scale (CAPS-5) at 12 weeks. As BNC210 had enormous promise, this news has been a bitter blow to the company’s prospects. I’d stay away from Bionomics following this disappointing development.

The BWX Ltd (ASX: BWX) share price is down 47% over the last 12 months. The slowing sales of its key Sukin brand and the disappointing performance of its acquisitions has weighed heavily on its shares this year. In addition to this, the withdrawal of a takeover approach from the Bain consortium has put a lot of selling pressure on its shares. I think the selloff may have been overdone, potentially making BWX a bargain buy now. However, it may be prudent to wait for a trading update at its AGM at the end of the month before investing.

In the meantime, these hot stocks could be great options for investors.

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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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