On Friday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) tumbled as much as 0.5% lower before rebounding ahead of the close.
Three shares that were dragged to a 52-week low on Friday whilst the market was down are listed below. Is this a buying opportunity?
The ARB Corporation Limited (ASX: ARB) share price tumbled to a 52-week low of $16.87 today. This latest decline meant that its shares had lost almost 30% of their value since peaking at $23.94 in June. The 4X4 car accessories company’s shares have come under pressure this year after management warned that it is cautious of the current economic environment and severe instability in some parts of the world. This is a reference to trade wars and the impact they are having on certain export markets. While I think ARB would be a great buy and hold option, it might be best to wait and see what impact trade wars have on its results in FY 2019 first.
The Nick Scali Limited (ASX: NCK) share price slid to a 52-week low of $5.05 on Friday. Investors have been hitting the sell button in a hurry in recent months amid concerns that the furniture retailer will be negatively impacted by the weakening housing market. These fears were confirmed last month when the company’s managing director Anthony Scali warned that same store sales growth would be challenging in this volatile trading environment. I would stay clear of Nick Scali until the housing market improves.
The Retail Food Group Limited (ASX: RFG) share price was trading at a multi-year low of 36.5 cents today. Investors appear to have given up on the embattled food and beverage company which fell from grace at the end of last year following a series of negative media articles. Later this month Retail Food Group will have to face its remaining disgruntled shareholders when it holds its annual general meeting. It is also likely to release a trading update at the event which I expect will reveal a further deterioration in its financial performance. It is for this reason that I’m staying clear of its shares.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB 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.