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Should you buy Praemium and these beaten down ASX shares?

Although the market charged higher again on Monday, not all shares were able to follow its lead.

Three shares that sank to 52-week lows yesterday are listed below. Are they bargain buys?

The Beacon Lighting Group Ltd (ASX: BLX) share price sank to a 52-week low of $1.08 on Monday. Investors appear to have been selling the shares of the retailer of lighting, ceiling fans, and light globes due to the housing market downturn. Altough the company delivered a solid first half result despite the downturn, management’s guidance for the second half appears to have spooked investors. They said: “With unpredictable trading expected during H2 FY 2019, Beacon Lighting is working towards delivering profits that are in line with FY 2018.” I’d suggest investors wait to see how the company performs before considering an investment.

The Praemium Ltd (ASX: PPS) share price crashed to a 52-week low of 44 cents yesterday after the investment platform company revealed that one of its major customers has switched to a new supplier. ANZ Private, which accounted for 8% of the company’s revenue, has taken its business to rival Netwealth Group Ltd (ASX: NWL). Whilst I’m sure that Praemium will bounce back, I fear this news could be a sign that either price competition is heating up or the Praemium platform is lagging behind its rivals.

The Whitehaven Coal Ltd (ASX: WHC) share price dropped to a 52-week low of $3.72 on Monday. The coal miner’s shares have fallen heavily this year after thermal coal was sold off due to Chinese import restrictions. If prices pick up in April and May as they traditionally do, then it could be worth considering Whitehaven Coal at these levels. One broker that certainly thinks its shares are in the buy zone right now is Deutsche Bank. Last week the broker retained its buy rating and $5.20 price target on the company’s shares.

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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 recommended Praemium 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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