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Is it time to buy these beaten down ASX shares?

On Wednesday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) opened the year with a disappointing decline of 1.6% to 5,557.8 points.

Unsurprisingly, with declines being seen across the board, a number of shares sank to 52-week lows.

Three shares that sank to this level are listed below. Is this a buying opportunity?

The Aveo Group (ASX: AOG) share price fell to a 52-week low of $1.51 on Wednesday. The owner, operator, and manager of retirement communities across Australia has seen its shares come under heavy selling pressure over the last 12 months due to allegations the company ripped off its residents. In addition to this, investors appear concerned what impact the Aged Care Royal Commission will have on Aveo Group this year. I would stay clear of all shares in the industry until after the inquiry.

The Marley Spoon AG (ASX: MMM) share price sank 11% to an all-time low of 40 cents yesterday. This decline means the meal kit company’s shares have now lost 72% of their value since listing on the Australian share market at $1.41 per share in July. Investors have been hitting the sell button in a hurry after management revised its loss before interest and tax guidance late last year. It now expects its loss before interest and tax to be between €32 million and €34 million instead of €25 million. Increased investment in marketing was the reason for the change. I would suggest investors avoid Marley Spoon until it turns a profit. If it ever does, that is.

The SKYCITY Entertainment Group Limited (ASX: SKC) share price dropped to a 52-week low of $3.22. In November SKYCITY advised that year to date normalised group revenue was up 7% on the prior corresponding period and VIP turnover was up 36% with a higher than average win rate. Despite this, it hasn’t been enough to support its share price. With the Crown Resorts Ltd (ASX: CWN) share price and the Star Entertainment Group Ltd (ASX: SGR) share price also hovering above their 52-week lows, investors appear pessimistic on the casino industry right now. While I think that SKYCITY’s shares look good value, it might be best to wait for its half year results in February.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Crown Resorts Limited. The Motley Fool Australia has recommended Sky City Entertainment Group 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.

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