Are these cheap ASX shares in the bargain bin?

The market may have rebounded notably higher on Tuesday, but not all shares were able to follow it higher.

In fact, the three shares listed below fell to 52-week lows or worse yesterday. Is this a buying opportunity for investors?

The NIB Holdings Limited (ASX: NHF) share price fell to a 52-week low of $4.86 on Tuesday. The private health insurer’s shares have come under significant selling pressure this year. This is likely to be down to concerns that the private health insurance industry could become a hot topic at next year’s election. While it’s not necessarily a share that I would buy, I do think the selloff may have been overdone and has potentially created a buying opportunity.

The Resolute Mining Limited (ASX: RSG) share price dropped to a two-year low of 93 cents yesterday. Despite many of its peers having a strong year and posting solid gains, Resolute’s shares have gone the other way. Investors appear to have been disappointed with how much it is costing the miner to pull gold out of the ground. In the September quarter Resolute produced 55,508 ounces at an AISC of US$1,141 an ounce. The current spot gold price is US$1,214 an ounce, meaning its margins are extremely tight. Although its shares look cheap, I think there are better options if you want exposure to the precious metal.

The Virtus Health Ltd (ASX: VRT) share price tumbled to a three-year low of $4.69 on Tuesday. This fertility treatment company’s shares have been on a downward trend since the release of an underwhelming full year result in August. That result revealed that total cycle volume in Virtus Australian clinics decreased 3.4% to 15,235 cycles during the year. Increasing competition and lower demand were largely to blame. And it doesn’t look as though things have improved since then. Last week at its annual general meeting the company warned that its margins have been lower for the first four months of FY 2019 than the prior corresponding period. Virtus looks cheap and could be a good long-term option, but I’d prefer to wait for its performance to improve before taking the plunge.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended NIB Holdings Limited and Virtus Health 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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