Although the All Ordinaries (Index: ^AXAO) (ASX: XAO) is trading close to a five-month high, not all shares on the index have been able to follow the market higher this year.
Three shares that sank to 52-week lows or worse this week are listed below. Is this a buying opportunity?
The Amaysim Australia Ltd (ASX: AYS) share price continued its decline and sank to an all-time low of 63 cents on Tuesday. The telco company’s shares have come under significant selling pressure since it announced a $50.6 million underwritten capital raising at 60 cents per share. This was a massive 36% discount to the last close price prior to the announcement. The net proceeds from the entitlement offer are to be used to reduce the company’s debt and provide additional balance sheet strength and flexibility to support its investment in new strategic growth initiatives. Whilst its shares look reasonably cheap now, I’m not a big fan of the company and would suggest investors focus on opportunities elsewhere.
The Auscann Group Holdings Ltd (ASX: AC8) share price tumbled to a 52-week low of 38 cents yesterday. Last week the medicinal cannabis company released its half year results and revealed revenue of just $0.47 million a loss of $4.4 million. I suspect that investors are disappointed with the lack of progress being made in the industry and have been selling shares and moving onto other opportunities.
The Bega Cheese Ltd (ASX: BGA) share price dropped to a two-year low of $4.52 on Tuesday. The food company’s shares have come under pressure since the release of a disappointing half year result last month. In the first half of FY 2019 Bega Cheese posted a 6% increase in revenue to $649.2 million and a 48.3% decline in normalised half year profit to $18.9 million. However, management appears confident that its second half performance will be stronger and advised that it expects to achieve full year normalised EBITDA growth of 12%. If it delivers on this then it could prove to be a good investment at the current level.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.