The Motley Fool

Why these ASX shares just crashed to 52-week lows

Despite the recent market volatility brought about by trade war concerns, the All Ordinaries index is still trading within sight of its highest level of the year.

Unfortunately, not all shares have been able to replicate this positive form.

The three shares listed below, for example, have just crashed to 52-week lows or worse. Here’s why:

The Mayne Pharma Group Ltd (ASX: MYX) share price has fallen heavily this week and reached a multi-year low of 55 cents on Wednesday. Investors were scrambling for the exit after the pharmaceutical company released a disappointing market update which revealed that its key Generics Products division has been struggling once again. Although it wasn’t the strongest performer during the first half, there were signs that it had turned a corner. Unfortunately, that was short-lived and its performance has deteriorated materially. During the first four months of the second half the division has posted a 32% decline in revenue compared to the prior corresponding period.

The OFX Group Ltd (ASX: OFX) share price hit a 52-week low of $1.43 on Wednesday. The shares of the global provider of online international payment services have been on a downward trajectory since the release of a trading update in March. That update revealed that market conditions had been challenging due to lower levels of currency volatility and softer global spot transaction volumes. As a result, its EBITDA is expected to rise only modestly in FY 2019.

The Praemium Ltd (ASX: PPS) share price continued its slide on Wednesday and hit a 52-week low of 38 cents. When the investment platform company’s shares hit that level, it meant they had lost a whopping 68% of their value since hitting a 52-week high of $1.18 in September. Its shares have come under pressure since it announced the loss of ANZ Private as a customer to rival Netwealth Group Ltd (ASX: NWL). ANZ Private was one of the company’s biggest customers, contributing 8% of its total revenue.

Need a lift after these declines? Then check out this hot small cap stock which has been tipped for very big things.

One ASX Stock For An Estimated $US22 Billion Marijuana Market

A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming. To the tune of an estimated $US22 billion.

Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.

Here's the best part: we think there's one ASX stock that's uniquely positioned to profit immensely from this explosive new industry... taking savvy investors along for what could be one heck of a ride.

AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.

Simply click below to learn more on how you can profit from the coming cannabis boom.

Click here to find out more

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 owns shares of Netwealth. 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.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.