The All Ordinaries (Index: ^AXAO) (ASX: XAO) tumbled lower on Friday after global economic growth concerns weighed on investor sentiment.
A number of shares tumbled along with the market, some more than most. Three shares that dropped to 52-week lows or worse are listed below. Is this a buying opportunity?
The Amaysim Australia Ltd (ASX: AYS) share price dropped to an all-time low of 62 cents on Friday. The budget telco company’s shares have come under pressure since the release of its half year results and accompanying capital raising announcement. Amaysim is raising $50.6 million at 60 cents per share, which was a massive 36% discount to the last close price prior to the announcement. The net proceeds 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. I’m not a fan of the company or the industry right now, but at 7x trailing earning it could be worth a look.
The Praemium Ltd (ASX: PPS) share price tumbled to a 52-week low of 54 cents at the end of last week. The investment platform provider’s shares have come under pressure since the release of a softer than expected half year result last month. Although the company posted a 7% increase in half year revenue to $23 million, its half year net profit after tax tumbled 13% due partly to an underwhelming performance by its international operations. One broker that is likely to think that this decline is a buying opportunity is Morgans. Last month its analysts retained their add rating and 87 cents price target on the company’s shares.
The Syrah Resources Ltd (ASX: SYR) share price plunged to a multi-year low of $1.15 on Friday. Investors have been selling the graphite miner’s shares for some time due to concerns about the oversupply of graphite. Concerns heightened at the end of January when the company released its latest quarterly update and revealed higher than expected operating costs and softer than expected prices for the current quarter. This hasn’t put off analysts at Macquarie. They held firm with their outperform rating, though they did slash the price target on its shares to $2.70 from $3.80. This is still more than double the current share price.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Praemium Limited. 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.