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3 ASX shares at 52 week lows: Are they in the bargain bin?

Although the market has been on a positive run over the last couple of weeks, not all shares have been able to follow it higher.

In fact, the three shares listed below have just fallen to 52-week lows. Are they in the bargain bin?

The Ainsworth Game Technology Limited (ASX: AGI) share price sank to a 52-week low of 96 cents yesterday. The gaming technology company’s shares have come under significant pressure since its full year results for FY 2018 fell well short of expectations. This was blamed on a poor performance in the domestic market due to competitive activity, regulatory approval delays, and product development changes which pushed back the release of key game titles. Judging by its share price performance, investors don’t appear convinced that things have improved in FY 2019. But they won’t have to wait long to find out if this is the case as Ainsworth Game Technology will hold its AGM later this month. I’d suggest investors wait for an update before considering an investment.

The GBST Holdings Limited (ASX: GBT) share price tumbled to a 52-week low of $1.65 on Monday. This specialist financial technology company’s shares have been trending downwards since the release of a disappointing full year result. GBST posted flat revenue of $88.3 million and a 22% decline in adjusted net profit after tax to $8.2 million. The loss of a major client by two of its key segments was given as the reason behind the poor performance. The lack of a trading update at last month’s AGM appears to have investors concerned that it could still be underperforming in FY 2019. While its shares look good value, I would suggest investors wait for an update at its half year results release early next year.

The Marley Spoon AG (ASX: MMM) share price hit a 52-week low of 56 cents yesterday, meaning it has lost 60% of its value since its July IPO. Investors have been selling the subscription-based meal kit provider’s shares after its recent update revealed a sizeable downgrade to its calendar year 2018 expectations. Although management held firm with its revenue guidance, increased investment in marketing means the company expects to make a loss before interest and tax of between €32 million and €34 million. This compares to its previous loss before interest and tax guidance of €25 million. Due to how competitive the market is, I would suggest investors avoid Marley Spoon until there is a major improvement in its performance.

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