Why Mayne Pharma and these ASX shares just sank to 52-week lows

The Mayne Pharma Group Ltd (ASX:MYX) share price and two others have just dropped to 52-week lows. Here's why…

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On Tuesday the Australian market tumbled lower amid concerns over global economic growth.

A number of shares fell more than most and some even dropped to 52-week lows or worse. Three shares that made this unwanted milestone are listed below.

Here's why they are at new lows:

The Blackmores Limited (ASX: BKL) share price hit a multi-year low of $79.66 on Tuesday. The health supplements company's shares have come under significant pressure this year due to the softening of demand for its products in the key China market. And judging by its share price weakness this month, it appears that some investors are not overly confident that FY 2020 will be much better. Later this month Blackmores will report its full year results and release its guidance for the next financial year. I would suggest investors keep their powder dry until then.

The CYBG PLC (ASX: CYB) share price tumbled to a multi-year low of $2.57 yesterday. The UK-based bank's shares have been on the slide this month due to the release of a disappointing quarterly update at the end of July. That update saw CYBG warn investors that a large volume of mortgages have been paid off by customers during the third quarter, resulting in a negative impact on its lending income. In addition to this, recent weakness in the British pound due to no-deal Brexit concerns has also weighed heavily on the bank's Australian-listed shares.

The Mayne Pharma Group Ltd (ASX: MYX) share price continued its slide and hit a multi-year low of 47 cents on Tuesday. Investors have been selling the pharmaceutical company's shares this year due to concerns over the underperformance of its key Generics division once again. After a brief recovery, the division's performance has deteriorated materially in the second half of FY 2019 due to challenging trading conditions. Whilst things will inevitably improve again in the future, I'm not overly convinced that it will be a quick fix. In light of this, investors may want to keep a safe distance for the time being.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores 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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