Should you buy Bellamy’s Australia and 2 other beaten down ASX shares?

Despite a positive run so far this year, over the last 12 months the All Ordinaries (Index: ^AXAO) (ASX: XAO) has fallen approximately 6%.

While this is disappointing, it is nothing in comparison to some of declines that have been made by shares on the index.

Three All Ords shares that have fallen heavily over the last 12 months are listed below. Are they in the buy zone now?

The Automotive Holdings Group Ltd (ASX: AHG) share price has lost 59% of its value over the last 12 months. Investors have been selling the auto retailer’s shares after the cooling housing market led to challenging trading conditions. Another headwind that the company has faced is regulatory intervention in the sale of finance and insurance products. All in all, FY 2019 looks set to be a tough year for the company and I would suggest investors stay clear until trading condition improve.

The Bellamy’s Australia Ltd (ASX: BAL) share price has sunk 34.5% lower since this time last year. The infant formula and baby food company’s shares have tumbled lower because of surprisingly lengthy delays in getting the SAMR approval required to sell its products on the China mainland. Bellamy’s applied for the accreditation in December 2017 and is still waiting today. Unfortunately, this delay and sales disruption caused by the launch of a new formulation means that sales are likely to be flat this year. While this is disappointing, I believe the selloff has created a buying opportunity for patient long term investors.

The Galaxy Resources Limited (ASX: GXY) share price has shed 48% of its value over the last 12 months. A decline in lithium prices and concerns over a future oversupply of the battery making ingredient have weighed heavily on the shares of Galaxy and its peers this year. I was optimistic that things were improving until a recent trading update from Orocobre Limited (ASX: ORE) revealed that it experienced a significant drop in the price of its lithium in the December quarter due to softer than expected demand. In light of this, I think it might be best to wait and see if prices improve in the March quarter before considering an investment.

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia has recommended Automotive Holdings Group 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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