These 3 ASX shares just fell to 52-week lows: Is this a buying opportunity?

Although the Australian share market charged higher on Monday, not all shares managed to post gains.

In fact, some popular shares even sank to 52-week lows or worse yesterday. Does this make them bargain buys?

The Bellamy’s Australia Ltd (ASX: BAL) share price dropped to a 52-week low of $7.07 yesterday. Investors have been hitting the sell button in a hurry since the infant formula company revealed that Australian label sales were expected to be down by upwards of 15% in the first half and flat for the full year. While the company is likely to be given a big boost when it is finally allowed to sell Chinese label products, it is unclear when its application will be approved. Because of this, Bellamy’s full year result is likely to be a big disappointment compared to original expectations. However, I believe the long-term potential that Bellamy’s has makes it worth considering it as a buy and hold investment.

The Ltd (ASX: KGN) share price plunged as much as 36% lower to a 52-week low of $2.97 on Monday following the release of a very disappointing business update. That update revealed a poor start to the year due to a surprising 27.4% decline in Global Brands revenue. Management blamed changes in the GST law effective from July 2018 and “the now apparent avoidance of GST by a number of foreign websites selling into Australia.” Considering the high levels of insider selling post-earnings and the unusual absence of a trading update with its full year results, I’m not surprised to see its share price collapse this week. While its shares do look to be good value now, I would suggest investors wait for more colour at its AGM next month or its half year results early next year.

The Nick Scali Limited (ASX: NCK) share price continued its slide on Monday and fell to a 52-week low of $5.20. Last week the furniture retailer’s managing director Anthony Scali warned that same store sales growth would be challenging in a volatile trading environment due to a slow-down in residential sales, which is a key driver of furniture sales. In addition to this, softening consumer sentiment and a weak Australian dollar are expected to weigh on its performance in FY 2019. Although I am a fan of the company, I think it is best avoided at this point in the cycle.

In the meantime, I think these mid cap shares could be great options for investors right now.

3 exciting mid cap shares tipped for big things

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Atlassian.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ltd. 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!